Institutional Investors Choose Gold Over Bitcoin Amid Global Trade Tensions
The reinstatement of Donald Trump’s 2025 tariff policy has intensified global trade conflicts, leading institutional investors to favor gold over Bitcoin.
Gold vs. Bitcoin: Institutional Preferences
According to a recent Bank of America (BofA) survey, 58% of fund managers identified gold as the top-performing asset during a trade war, while only 3% selected Bitcoin.
Why Are Institutions Favoring Gold?
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Rising geopolitical uncertainty (trade wars, international conflicts)
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Growing U.S. fiscal deficit (projected to reach $1.8 trillion in 2024)
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Declining trust in the U.S. dollar (global reserve currency concerns)
Gold is no longer just an inflation hedge—it is now seen as a safe-haven asset against geopolitical risks, deglobalization, fiscal instability, and trade weaponization.
Bitcoin’s Limitations
Although Bitcoin is a decentralized asset with a fixed supply, often considered a hedge against inflation, institutional investors remain cautious due to:
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High short-term price volatility
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Lack of market maturity
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Limited impact of ETF demand
At present, investors are seeking politically neutral assets, with gold emerging as the preferred safe-haven choice. While Bitcoin remains a viable long-term store of value, it has yet to establish itself as a reliable institutional asset in the short term.
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