The 2026 market downturn has reignited the fierce debate over Bitcoin’s status as "Digital Gold." While Bitcoin has lost nearly 50% of its value since its October 2025 peak, traditional gold has soared to record highs, recently touching $5,594 per ounce. This divergence has led some analysts, including well-known hedge fund managers, to claim that Bitcoin has failed as a safe-haven asset. Critics argue that Bitcoin remains too correlated with technology stocks and "easy money" liquidity. On the other hand, proponents point out that Bitcoin’s 200-week moving average is still holding, a historical indicator of long-term value. The current situation suggests that while Bitcoin may not yet be a stable haven during sudden liquidity shocks, its long-term scarcity narrative remains intact for those willing to weather the 50% drawdowns that are synonymous with this asset class.
