The recent decline in the cryptocurrency market has sparked a debate over Bitcoin's "Digital Gold" narrative. While gold has recently surged to record highs amidst global uncertainty, Bitcoin has struggled to maintain its momentum, dropping from a peak near $98,000 to the $88,000 range in late January 2026.

According to industry analysis and recent market data, here is why Bitcoin is currently struggling to act as a safe-haven asset:
1. The "Greenland Shock" and Macro Volatility
The primary catalyst for this week's downturn was a sudden escalation in trade tensions. US President Donald Trump’s renewed bid to acquire Greenland led to the announcement of 10% tariffs (potentially rising to 25%) on eight European allies.
The Impact: This triggered a "triple kill" in US markets—stocks, bonds, and the dollar all fell simultaneously.
The Divergence: In this high-stress environment, investors retreated to "true" safe havens like gold and silver. Bitcoin, which is increasingly tied to institutional liquidity, was sold off alongside other high-risk assets like the Nasdaq.
2. High-Beta Risk Asset vs. Safe Haven
Experts from the Xinhuo and OK Research Institutes point out that Bitcoin currently behaves more like a high-beta risk asset (assets that are more volatile than the market) rather than a pure hedge.
Institutional Influence: Because much of the recent buying comes from institutional ETFs and leveraged arbitrage strategies, Bitcoin is hypersensitive to the cost of dollar financing.
Liquidity Constraints: When global liquidity tightens due to geopolitical friction or central bank hesitation, Bitcoin tends to suffer from "de-leveraging" while gold benefits from "passive inflows."