For years, Bitcoin has been compared to gold—a stable store of value and a hedge against economic uncertainty. However, a new report from Swiss crypto bank Sygnum challenges that idea, suggesting that Bitcoin behaves more like a high-risk tech stock rather than the digital equivalent of gold.
Despite high-profile endorsements—such as U.S. Federal Reserve Chair Jerome Powell calling Bitcoin a potential “safe haven asset”—its price movements tell a different story. According to Sygnum analysts, Bitcoin’s value is primarily driven by its status as a store-of-value asset, not by any technological applications or innovations on its network.
Bitcoin Outshines Ethereum as Crypto’s Main Indicator
Traditionally, Ethereum has been seen as the proxy for the broader crypto market due to its vast role in blockchain applications. However, recent trends indicate that Bitcoin is increasingly taking over that role. Sygnum notes that the underwhelming adoption of spot Ethereum ETFs suggests that many investors now see Bitcoin as sufficient exposure to the entire crypto sector.
“This is evident in the weak adoption of Ethereum ETFs,” Sygnum’s report states. “New investors, for now, conclude that holding Bitcoin alone is enough to gain exposure to crypto.”
Bitcoin’s Future Hinges on U.S. Regulations
While Bitcoin’s reputation as a “digital gold” is still up for debate, its future may depend on regulatory moves in the U.S. If the cryptocurrency continues to mirror the stock market—behaving like “the Nasdaq on steroids,” as the report describes—it could struggle to establish itself as a true reserve asset.
For now, investors are watching closely to see whether Bitcoin will cement its place as a global store of value or remain just another speculative asset in the financial markets.
