Bitcoin’s ‘Digital Gold’ Narrative Under Pressure as Investors Shift Focus to Gold Amid Rising Demand

According to a recent report by Morgan Stanley, Bitcoin’s status as **”digital gold”** is increasingly being challenged amidst robust demand for traditional gold. Analyst Nikolaos Panigirtzoglou expressed skepticism, stating that Bitcoin’s volatility and its correlation with **tech stocks** have undermined its perceived value as a safe haven asset. He further elaborated that gold is likely to thrive in what he terms **”debasement” trades**, where investors seek to protect their wealth against **inflation** and currency devaluation.

The report highlights a stark divergence in market trends; while **Bitcoin exchange-traded funds (ETFs)** have experienced notable outflows over the past two months, gold ETFs have attracted substantial inflows. This shift signifies a strategic pivot by private investors towards gold, particularly during the months of February and March. Furthermore, the persistent negativity in Bitcoin futures positions since mid-January contrasts with the stability observed in **gold futures**, indicating a preference for gold as a safe asset amid economic uncertainties.