Are markets setting new record highs as investors shift to safe haven assets? | Credit: Spencer Platt/Getty Images
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Key Takeaways
Bitcoin surged past $107,000 during Monday’s European session.
Gold rose to $3,450 per ounce, just shy of its $3,500 all-time high.
The divergence between crypto and traditional safe havens like gold is becoming more pronounced amid rising global tensions.
As geopolitical tensions escalate, global markets are feeling the heat, sending traditional safe havens like gold and the U.S. dollar soaring.
Meanwhile, Bitcoin (BTC) is trying to reclaim its narrative as a hedge in times of crisis.
Risk aversion is dominating investor behavior, but while gold is rallying on fear, Bitcoin is trading more like a high-risk tech stock, raising questions about how it fits into the global flight to safety.
Bitcoin bounced back on Monday, climbing above $107,000 during the European session after a steep correction last week.
Despite rising tensions in the Middle East, particularly as the Israel-Iran conflict stretches into its fourth day, institutional interest hasn’t slowed.
Metaplanet added another 1,100 BTC to its balance sheet, while spot Bitcoin ETFs saw inflows of $1.37 billion last week.
Bitcoin eyes new record high. | Credit: CoinMarketCap.
BTC has broken past key resistance at $106,406 and is now approaching a bearish Fair Value Gap (FVG) at $108,064.
This zone may act as resistance—if rejected, Bitcoin could drop back toward support at $102,943 (the 50-day EMA), with a potential dip to the psychological $100,000 level if that fails.
Technical signals remain mixed: Relative Strength Index (RSI) hovers around 50, suggesting a lack of clear momentum, while the Moving Average Convergence/Divergence (MACD) recently flashed a bearish crossover, hinting at short-term downside risk.
Gold surged to $3,450 per ounce, just $50 shy of its April record, as demand for safe-haven assets surges in the face of geopolitical turmoil and renewed trade tensions.
Gold nears new record amid flight to safety | Credit: GoldPrice.com
In contrast to Bitcoin, gold’s correlation with equities remains low, reinforcing its traditional role as a portfolio hedge.
Analysts note that gold’s price could continue to rise if economic signals or policy updates suggest further inflation concerns or rate cuts.
Safe-Haven Rush Boosts the Dollar and Yen
During the crisis, the U.S. dollar gained ground alongside the Japanese yen and Swiss franc.
The dollar index rose 0.4% to 98.07 in early Asia trading.
The yen appreciated 0.35%, while the Swiss franc dropped 0.39% against the dollar.
Risk-sensitive currencies like the Australian and New Zealand dollar fell nearly 0.9%.
Earlier in the week, the dollar had pulled back on softer U.S. inflation data and expectations of more aggressive Fed rate cuts, but global instability has once again flipped the script.
Crude prices also jumped more than $4, while gold climbed another 0.8%, marking its highest levels since early May.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
