Gold, Bitcoin, and the Swiss Franc are emerging as preferred safe havens as U.S.–China tensions rise and global equity markets plunge.
Resilience Amid Uncertainty
As global stock markets fell sharply, three assets stood firm: Bitcoin, gold, and the Swiss Franc.
The Swiss franc surged to 1.2500 against the U.S. dollar — up from 1.2390 earlier in the week — and reached a multi-month high of 1.0763 compared to the September low of 1.0587.
Gold climbed to $4,017 — just a few dollars shy of its all-time high of $4,053.
Bitcoin initially dropped to $107,000 but quickly rebounded to $112,800.
ETF Inflows and Relative Strength
Despite a modest $4.5 million outflow from spot Bitcoin ETFs on Friday, the weekly net inflow totaled $2.7 billion, pushing cumulative inflows above $62.7 billion.
By comparison, the SPDR S&P 500 ETF recorded a $1.7 billion outflow, while major indexes — the S&P 500, Nasdaq 100, and Dow Jones — all fell by over 2%.
All this occurred as the Crypto Fear and Greed Index dropped from 53 to 29, entering fear territory. The VIX volatility index also surged to 23, highlighting growing market instability.
What’s Driving the Flight to Safety?
The deterioration in U.S.–China relations lies at the heart of the market shock. President Trump announced a “massive increase” in tariffs on Chinese imports, while China responded with new tariffs, export controls, and trade restrictions.
Investors, shaken by volatility, redirected capital toward:
- Bitcoin — a scarce asset (max supply: 21 million) with exchange balances at multi-year lows.
- Gold — long considered a central bank reserve staple, with over 900 tons purchased globally this year.
- Swiss Franc — seen as a symbol of neutrality and stability during geopolitical turmoil.
Why These Assets?
Bitcoin is favored for its deflationary design and resistance to central bank manipulation. Its supply-tightening mechanism, known as “halving,” reinforces long-term value.
Gold remains a timeless classic for investors. For the first time since 1996, global central banks hold more gold than U.S. Treasury securities.
The Swiss Franc is perceived as a resilient fiat currency, protected from geopolitical shocks by a robust financial and economic foundation.
Assets with limited supply, global demand, and political neutrality continue to prove their worth as modern-day safe havens in times of uncertainty.
Conclusion
In times of heightened tension and market declines, Bitcoin, gold, and the Swiss Franc stand out as solid safe-haven assets. As the geopolitical storm intensifies, investors appear poised to continue leaning on these three pillars of stability.
Frequently Asked Questions
Find answers to the most common questions below.
They have limited supply, low correlation to equities, and historical performance as stores of value during crises.
Despite a dip, BTC quickly rebounded to $112,800, supported by ETF inflows and investor demand.
Its neutrality, strong economic policy, and perception as a low-risk currency make it attractive in volatile markets.
While serving similar purposes, they attract different types of investors — traditional institutions lean toward gold, while tech-savvy and risk-tolerant investors gravitate toward Bitcoin.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
