Bitcoin declined following Israeli airstrikes on Iran, but gold is rekindling debate over Bitcoin’s safe shelter.
Specifically, Bitcoin experienced new volatility on Friday, following a major geopolitical escalation as Israel launched airstrikes in Iran. The conflict that led to sharp movements across the global market has led to a pullback of major cryptocurrencies, including Bitcoin.
Bitcoin dropped by $103,000 for a short time, recording a 3.66% drop in 24 hours, before recovering slightly to trade at $103,964. The biggest code has maintained its level above $107,000 since June 9th, but has failed to maintain its profits amid rising geopolitical tensions.
Alongside Bitcoin, Ethereum registered a sudden loss, dropping by 7.6% at some point during the session.
Bitcoin critics respond after gold performs
Meanwhile, traditional safe haven assets like gold and oil have benefited. Gold rose to $3,421, an increase of $38.60 or 1.14%, while oil prices rose 5%, signaling a shift towards safer assets perceived by investors.
This difference has fueled new criticism of Bitcoin’s ability to serve as a hedge during macroeconomic uncertainty. Gilmorales, former chief market strategist Discussed The price reaction exposed the nature of Bitcoin as a speculative asset rather than a valuable alternative repository. He likened the behavior to the behavior of high-tech stocks, saying that in a risk-off environment, Bitcoin drops just like other risky assets.
How can anyone think of Bitcoin?
The contrasting movement between Bitcoin and Gold rekindled the debate already taking place around the Bitcoin story as “digital gold.” Chief economist and longtime Bitcoin critic Peter Schiff pointed to market responses as evidence that investors still rely on physical gold in times of crisis.
Israel attacks Iran. Oil prices will rise by 5%, while S&P futures will fall by 1.5%. In response, investors seeking safe shelter will buy gold and increase prices by 0.85%. Meanwhile, investors dumped Bitcoin and reduced the price by 2%. How can you consider Bitcoin to be a digital version of gold?
– Peter Schiff (@PeterSchiff) June 13, 2025
Schiff said S&P 500 futures fell 1.5% and oil spiked, but gold prices rose as expected. Bitcoin, by contrast, saw a sale. As a result, Schiff asked:
“Can anyone consider Bitcoin a digital version of gold?”
Some market participants rebutted this argument by highlighting the logistical challenges in physical gold trading. They argued that selling gold through platforms such as JM bullion would cost up to 10% transaction costs when considering transportation and insurance.
Others criticized the limited utility of gold in the digital age, arguing that Bitcoin is more adaptable and efficient despite recent declines. However, Schiff objected to the cost claim; Statement Selling gold should not bear such high costs.
Despite historic Bitcoin outperformance, further bitcoin rebound
Additional criticism has emerged regarding Bitcoin’s market behavior during the crisis as the market digested the broader meaning of the Israeli-Iran conflict.
Whalewire CEO Jacob King has argued that Bitcoin has historically been performing poorly during geopolitical or economic shocks.
War explodes in the Middle East between Iran and Israel, and bitcoin crashes like dead weight.
The truth is, Bitcoin is not a safe haven. It only thrives in a mild market, supported by speculation and artificial demand for tethered fuel.
Every time a real crisis hits – whether that’s…pic.twitter.com/rx2xngp8hh
– Jacob King (@jacobkinge) June 13, 2025
He attributed this to speculative demands, and emphasized that Bitcoin only thrives in stable markets.
Bitcoin Maxis still exists
Despite criticism, the comparison between Bitcoin and Gold remains a central theme. Users cited historical price growth as a reason to think Bitcoin is superior, pointing to an increase in Bitcoin from $0.30 in 2011 to more than $112,000 in 2025. In contrast, gold rose from $1,150 to $2,838 to $3,375 over the same period.
In a moment before this confusion, Galaxy Digital CEO Mike Novogratz predicted that Bitcoin could ultimately reach $1 million. Speaking about CNBC, he said Bitcoin has achieved status as a macro asset and is now displayed along with gold, silver and major indexes like the S&P 500.
He noted that a key driver of this change is reducing global confidence in the involvement of the US dollar and BlackRock.
