'Digital gold' losing its status? Bitcoin is being neglected in the narrative of safe assets.

Source: TokenPost Original Title: ‘Digital Gold’ Losing Its Place… Bitcoin Has Been Pushed Out of the Safe Asset Narrative Original Link: After the Jackson Hole meeting, traditional safe-haven assets such as gold and Swiss francs have regained attention, while Bitcoin's presence among mainstream assets has gradually diminished.

Since the Federal Reserve Chairman hinted at a dovish tone during the Jackson Hole meeting in August, there has been a sharp shift in global financial markets towards a “preference for safe assets.” While traditional safe assets such as gold and the Swiss franc are in the spotlight, the presence of Bitcoin (BTC) seems to be diminishing.

Robin Brooks, former chief economist of the International Financial Association (IFF), pointed out in a recent interview that “Bitcoin is no longer a safe asset and has lost its status in the mainstream market.” He stated that “although Bitcoin was supposed to rise as 'digital gold' when the nominal value of currencies is impaired, in the current uncertain environment, the market instead views Bitcoin as a risk asset.”

Brooks specifically pointed out that since the Fed chair's speech on August 22, market participants are no longer worried about high-intensity tightening, but have begun to focus on the negative effects of fiscal expansion, namely the possibility of “currency devaluation.” As a result, investors are flocking to traditional assets such as gold and the currencies of low-debt countries (like the Swedish Krona and Swiss Franc) as a means of value protection against rising prices. In contrast, Bitcoin has fallen about 25% since late August, showing an opposite trend.

Brooks even asserted, “The era of Bitcoin as a safe asset is over,” with a clearly pessimistic attitude.

However, there are also different viewpoints. The American research company BTIG mentioned in a recent report that Bitcoin may be undergoing a short-term adjustment and has the potential for a rebound. After falling 36% from a recent low, BTC has entered a “reflexive rise” phase, which may lead to a recovery to $100,000 through an expanded upward movement.

Currently, Bitcoin has recovered to around $92,450, up about 10% from last week. However, it is still in a state of decline of more than 20% over the past month, with overall macroeconomic uncertainty and asset hedging phenomena continuing.

As gold re-emerges as the center of the narrative for secure assets, the debate over the role of Bitcoin is expected to continue.