As geopolitical tensions between Iran and Israel intensify, bitcoin prices have taken a hit, falling 2% to $62,500, while gold prices surged by 1% to $2,662 per ounce. Bitcoin’s drop comes as investors shift away from the cryptocurrency, opting instead for gold in response to escalating fears of conflict in the Middle East.

Tuesday’s market reaction follows reports that the White House believes Iran is preparing to launch an imminent ballistic missile attack against Israel. The U.S. has pledged to assist Israel in intercepting any potential threats, raising fears of broader instability in the region. Despite assurances from Israeli military officials that no immediate aerial threat has been detected, markets have responded with caution.

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Gold’s rise in value during these tensions challenges the argument that bitcoin constitutes a modern “digital gold.” While bitcoin advocates have long argued that the cryptocurrency could serve as a safe haven, the recent sell-off highlights its continued perception as a riskier asset during times of geopolitical uncertainty.

This flight to gold reinforces the metal’s enduring role as the go-to asset in crisis situations, leaving bitcoin struggling to claim the same status. As tensions in the Middle East continue to unfold, it’s clear that, for now, investors still see gold as the more reliable hedge against global instability.