Bitcoin’s Digital Gold Reputation Faces Fresh Doubts

The long-standing idea that Bitcoin (BTC) is “digital gold” is once again under review. In a recent interview, ETF analyst Nate Geraci raised questions about whether the world’s largest crypto coin has truly earned the reputation of a safe store of value. 

His comments reopened a debate that has shaped how institutions and industry leaders see Bitcoin, especially during its strongest years of growth. 

Analyst Waters Down ETF Flows

For years, many analysts have said that stronger exchange-traded fund (ETFs) inflows and wider use would help confirm Bitcoin as a store of value. Some institutions agree with that view. Reportedly, JPMorgan even suggested that the flagship crypto could replace gold next year as the world’s top store of value.

Geraci, however, urged a more cautious tone. He explained that Bitcoin still moves like a volatile risk asset, not a safe-haven investment. He said investors cannot assume the digital-gold debate is settled. This is especially when Bitcoin’s reactions to market stress remain inconsistent.

Bitcoin’s Safe-Haven Status Remains Unproven

Geraci explained that the real test is how Bitcoin performs when the broader financial market declines. Investors want reassurance that Bitcoin can protect their portfolios during stressful periods. 

Yet recent market events show a divided picture. Earlier in the year, during the tariff turmoil that unsettled stocks, Bitcoin rose while equities fell. That moment helped strengthen confidence in its image as digital gold. 

However, only a few months later, the market saw a technology-led pullback, and Bitcoin fell even harder than major stocks. This shift weakened trust in its ability to behave like a stable safe-haven asset. 

Bitcoin Still Young Compared to Gold, Says Analyst

Geraci also noted that Bitcoin’s age plays a role. At 15 years old, the digital currency is still young and has not yet built a long-term identity. Gold, in contrast, has held its reputation as a store of value for decades.

Some industry leaders still draw strong comparisons. Binance founder Changpeng ‘CZ’ Zhao has often said Bitcoin outperforms gold in several important ways. However, Geraci believes the asset still needs more time to build a reliable record across a full range of market cycles. 

Crypto Market Still Split on Bitcoin’s Identity

Bitcoin’s recent performance adds to the complexity. The digital asset is down more than 25% from its all-time high. Still, it has also more than doubled since early 2024, proving its long-term strength.

Geraci said the latest crash began as stocks weakened, but heavy leverage in the crypto market made the drop worse. He added that ETF flows reflect a market that is still undecided. 

Spot Bitcoin ETFs saw billions in outflows recently, yet since January they have still recorded around $22 billion in net inflows. This mixed pattern suggests a market still undecided about how to classify the asset.