Bitcoin drops as gold rebounds, raising questions about “digital gold”

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Bitcoin sold off sharply early Friday during Asian trading, falling more than 5% from around $89,000 to a low near $83,400. Unlike gold and US equities, it failed to stage a meaningful recovery, exposing growing doubts about Bitcoin’s role as a crisis hedge.

The sell-off followed a surge in global risk aversion after President Trump escalated rhetoric toward Iran, warning of potential military action if nuclear talks fail. A looming US government shutdown added further pressure.

Gold initially plunged amid volatility but quickly rebounded in a dramatic V-shaped recovery, while equities showed relative resilience. Bitcoin, however, managed only a modest bounce, underperforming both safe havens and risk assets during a key market stress test.

[bonk]

btc failing the stress test while gold rips feels like a wake-up call tbh