Bitcoin Plunges Below $97K as Gold Regains Safe Haven Status

Bitcoin Drops Below $97,000

Bitcoin's price has fallen below $97,000, marking a significant drop from its recent highs. This decline comes amidst ongoing market uncertainty and volatility in the cryptocurrency sector.

The recent price action has raised questions about Bitcoin's role as a safe haven asset, particularly in times of economic uncertainty. Traditionally, Bitcoin and gold often moved together, especially when the dollar was strong. However, the correlation between the two assets has dropped significantly as investors lean towards more traditional safe haven assets during periods of uncertainty.

The Bitcoin gold ratio, which measures the price of Bitcoin in terms of USD against the price of gold in the US per ounce (also in terms of USD), has dropped by 34 points recently. This ratio reflects the status of trading in gold, which has been marked safe again as its price surges 10% in 2025. However, Bitcoin gold, which was supposed to gain much traction in 2025, is facing downside now.

The current future seems bright for the yellow metal. However, is there any link with gold ETF as well? Certainly. Bitcoin ETF trading is also on the rise. There is a section of non-directional bets on it. However, this ongoing trend of ETF buying is not permanent. Any simultaneous future selling or any significant price fluctuation can offset it easily.

Recently, there has been a $4 billion inflow in the spot-listed US-based ETFs. It is purely an inflation-driven action. At the same time, inflation-based impulse buying could give away if the price stabilizes.

Do invest in Gold ETF, as the market is going bullish. Inflation is also becoming stable, but it won’t reduce anytime soon. So, the gold prices will likely increase. Especially with players like JP Morgan complimenting traders with gold inflow, it is likely that the Bitcoin gold ratio would fall further.