Geopolitical turmoil was another major theme in 2025. From an escalated trade war between the US and China to ongoing conflicts and political uncertainty, investors had plenty of reasons to seek safety.
October 2025 safe-haven dynamics: Bitcoin plunged during a tariff-induced market sell-off, while gold spiked on haven demand.
US-China tariff threats and other geopolitical shocks sent markets reeling. Capital rushed into gold, pushing it from the mid-$3,000s to over $4,200/oz within days.
Investors sought the tangible security of gold as protection against war, political chaos, and potential currency crises.
Safe-haven buying was further reinforced by central banks (which were record purchasers of gold amid global instability) and talk of de-dollarization by some countries.
Gold’s 55% surge this year has been explicitly linked to geopolitical uncertainty from war fears to questions about US fiscal health, alongside those expectations of easier Fed policy.
“Risk-On” or Refuge? Bitcoin, meanwhile, behaved more like a high-octane equity than a haven during the crises.
In the October sell-off, Bitcoin plunged 17% in a week as leveraged positions unwound en masse. Initially, crypto acted as “risk-off” as any risky asset, with traders dumping Bitcoin and Ethereum in favor of cash or gold.
However, an interesting pattern emerged: after the initial shock, some investors rotated back into Bitcoin once the dust began to settle. Analysts note that Bitcoin’s safe-haven role is conditional and timing-dependent.
Also Read: Why are Bitcoin, XRP, Solana, and Ethereum Falling While Gold and Silver Rise?