- Bitcoin’s role as a safe-haven asset is becoming clear as the US-Iran war continues.
- Spot Bitcoin ETFs have added over $1.3 billion in inflows this month.
- Bitcoin is in a bull market after rising by 20% from its lowest level this year.
Bitcoin is slowly becoming a safe haven asset as the US-Iran war continues. BTC price rose to $71,445 on Sunday, up substantially from the year-to-date low of $60,000.
Bitcoin as a Safe-Haven Asset
Data shows that the role of Bitcoin as a safe-haven asset is rising as the US-Iran war continues. One of these data is the ongoing ETF inflows, which show that investors are buying the dip despite the ongoing war.
SoSoValue data shows that the spot Bitcoin ETFs added over $767 million in inflows last week, higher the that previous week’s $568 million.
They have added over $1.34 billion in assets this month, bringing the net inflows since inception to over $56.1 billion. These funds now hold over $91 billion in assets, with IBIT having over $55.6 billion in assets.
Spot Bitcoin ETFs shed over $206 million in assets in February, the fourth consecutive month in the red. They shed over $6.3 billion in the previous four months.
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In contrast, investors have started selling their gold ETFs. Data compiled by ETF shows that the SPDR Gold ETF (GLD) shed over $232 million in assets last week after losing over $4.6 billion in the previous week. In theory, this war should be a good period for gold, which is widely seen as a safe-haven asset.
Bitcoin’s performance is also a sign that some investors are seeing it as a safe-haven asset. It has jumped by over 20% from its lowest level this year, meaning that it is now in a bull run. In contrast, the stock market has tumbled, with the S&P 500, Dow Jones, and the Nasdaq 100 indices falling to the lowest levels in weeks.
Bitcoin proponents have always argued that Bitcoin is a safe haven asset, comparing it with digital gold. It has seen strong demand in the past 17 years, while its supply is capped at 21 million. Over 20 million coins have already been mined and the remaining ~1 million coins will be mined in 2140.
Additionally, Bitcoin’s software has put in place the halving mechanism that reduces its rewards by half every four years.
Still, Bitcoin’s role as a safe-haven asset has been questioned in the past few years as it has constantly dropped whenever major risks emerged. For example, it dropped after President Donald Trump announced his reciprocal tariffs. It also dropped ahead of the Iran war.
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