JPMorgan Bank has revealed an unusual split in global markets amid the fallout from the Iran-related war, where Bitcoin showed signs of demand as a safe haven, while gold and silver — the traditional hedging tools — faced noticeable selling pressure.

The bank’s strategic analyst, Nikolaos Panigirtzoglou, and his team explained that Bitcoin has maintained better stability compared to precious metals since the start of the Iranian conflict, even as gold prices declined by about 15% over the month, with ETFs experiencing outflows estimated at around $11 billion during the first three weeks of March.

Silver also faced similar pressures, as inflows accumulated since last summer were liquidated, while Bitcoin funds continued to record positive inflows during the same period.

Shifts in Investor Behavior

This divergence is not limited to prices alone but extends to market structure and trading positions, with gold and silver experiencing heavy selling after reaching previous high levels, as investors moved to reduce risk amid rising interest rates and a strong dollar.

Data from CME Group shows a sharp decline in gold and silver positions since January, compared to relatively stable Bitcoin futures contracts.

Bitcoin Is Not a Traditional Safe Haven

The bank pointed out that Bitcoin’s performance does not fully reflect the "safe haven" model, as its value initially dropped to around $60,000 at the start of the crisis before later stabilizing within a range of $60,000 to $70,000, supported by renewed investment inflows.

Meanwhile, gold and silver continued to lose momentum, with liquidity deteriorating in their markets, leading to a narrowing of gold trading ranges below Bitcoin’s levels.

The Role of Cryptocurrencies in Crises

The bank linked this relative resilience to increased use of cryptocurrencies in economies under financial stress, citing Chainalysis data showing heightened digital currency activity in Iran after the outbreak of the war, especially transfers from local platforms to private wallets and international exchanges.

The report concluded that this shift may reflect an increasing role for cryptocurrencies as a hedge tool in environments characterized by economic and geopolitical instability, as traditional assets become less effective under such conditions...