January 28 News, as the risk of a US government shutdown rapidly increases, the flow of safe-haven funds shows a clear divergence. Gold prices continue to strengthen, while Bitcoin, known as “digital gold,” performs sluggishly. Analysts point out that amid rising political uncertainty, gold has once again become the preferred asset, while Bitcoin faces multiple structural pressures.
Gabe Selby, Head of Research at CF Benchmarks, stated that concerns over the US federal government shutdown and fiscal outlook are exerting downward pressure on Bitcoin. He noted that while there are short-term positive factors for Bitcoin, these are more related to political developments rather than traditional monetary easing logic. The market initially expected fiat currency devaluation to drive Bitcoin higher, but in reality, its performance has lagged behind stocks and precious metals.
Data shows that the prediction platform Polymarket currently estimates a 77% chance of a US government shutdown. As Congress remains deadlocked over funding issues, safe-haven assets are reacting first. On Wednesday, gold prices broke through $5,280 per ounce, with an 85% increase over the past year; the S&P 500 index also hit new all-time highs. In contrast, Bitcoin has yet to regain the $90,000 mark, and the total market capitalization of the crypto market has shrunk by about $1 trillion from its October 2022 peak.
Analysts believe that Bitcoin’s underperformance compared to gold is mainly due to three reasons. First is technical risk. Ed Yardeni, President of Yardeni Research, pointed out that as a digital asset, Bitcoin may face security challenges from quantum computing in the future, whereas gold’s physical properties make it easier to understand and trust. David Duong also warned that some Bitcoin could be exposed to remote quantum attack risks under extreme circumstances.
Second is increasing competition. Mike McGlone believes that Bitcoin is not the only scarce asset, as the existence of numerous digital assets disperses investment focus, while gold’s competitors are relatively limited.
Finally, the logic of currency devaluation trading. Trump has repeatedly signaled that a weaker dollar is not ruled out, prompting funds to shift toward more traditional safe-haven assets. In this environment, gold, with its store of value and scarcity attributes, is more attractive in the short term than Bitcoin.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
"Rich Dad Poor Dad" Author: Inflation and geopolitical conflicts will drive up oil prices, optimistic about assets like Bitcoin and Ethereum.
Robert Kiyosaki points out that national debt and currency issuance will exacerbate inflation, while geopolitical conflicts may drive up oil prices. He emphasizes that personal financial awareness and asset allocation are crucial in the current economic environment, holding a positive view on gold, silver, oil, and cryptocurrency.
GateNews10m ago
The AI sector has risen by 2.35% in the last 24 hours, and BTC has surpassed $66,000.
As of March 30, the majority of the cryptocurrency sectors have risen, with the AI sector showing significant gains. Bitcoin has surpassed $66,000, and Ethereum has surpassed $2,000. The Meme, Layer 2, and CeFi sectors have also seen increases, but the DeFi sector has experienced a slight decline. Overall, the sector indices have all shown varying degrees of increase.
GateNews13m ago
Michael Saylor Breaks 13-Week Bitcoin Accumulation Pattern amid Shift to Preferred Stock Funding
Strategy, formerly MicroStrategy, appeared to pause its weekly Bitcoin purchases for the first time in 13 weeks as Executive Chairman Michael Saylor did not issue his customary Sunday “Orange Dot” signal on March 29, 2026.
CryptopulseElite13m ago
Cash is shifting into bonds as war and inflation jolt the market
The current market is experiencing a chain reaction due to the war in Iran, leading to rising oil prices and increased inflation. Investors are seeking safer assets, with bonds emerging as a prominent choice. Short-term bonds are stable due to expectations of prolonged high interest rates from the Fed, while long-term bonds face volatility due to ongoing macroeconomic risks. This unique situation allows bonds to serve both defensive and profitable roles, attracting capital away from riskier assets like stocks and Bitcoin amidst persistent inflation and geopolitical pressures.
TapChiBitcoin33m ago
Bitcoin Stalls Near $67K As Analyst Warns Market Could Revisit Recent Lows
Crypto analyst Michaël van de Poppe’s latest comment on Bitcoin landed at a moment when the market is already struggling to find direction. In his post, he said the trend remains unchanged, described the session as one of the “most boring” of the week, and argued that if Bitcoin cannot push back
BlockChainReporter38m ago
Bitcoin Cash unexpectedly dropped 5% as whales sold 60,000 BCH.
Bitcoin Cash (BCH) dropped 5% following a whale's sale of 60,000 BCH, highlighting market sensitivity to large sell-offs. A significant liquidation exacerbated the decline, revealing ongoing pressure from large holders. Without support, BCH may experience continued volatility.
TapChiBitcoin40m ago
