Bitcoin Price Decline Renews Market Volatility Concerns

The Bitcoin price crash intensified on Friday (6/2/2026), sending shockwaves across the global cryptocurrency market.

According to CoinMarketCap data at 14:32 WIB, Bitcoin fell nearly 9 percent to 64,977.93 US dollars from 71,195.94 US dollars.

The downturn extended beyond Bitcoin, with Ethereum sliding 9.82 percent to 1,904 US dollars.

Other major cryptocurrencies also posted sharp losses, including Binance Coin, XRP, and Solana, which recorded the deepest correction at 12.96 percent.

The Original Idea of Bitcoin as Digital Gold

Bitcoin was initially promoted as a digital alternative to gold due to its limited supply of 21 million coins and resistance to monetary expansion.

Supporters argued that its scarcity and decentralized nature could protect value from inflation, similar to physical gold.

Gold has long been viewed as a safe-haven asset, maintaining purchasing power over centuries and often strengthening during economic uncertainty. Bitcoin was expected to perform a similar function in modern financial markets.

Why Bitcoin Has Failed to Match Gold’s Performance

Data from 2025 shows a widening gap between Bitcoin and gold. According to The Guardian, gold prices rose around 70 percent in US dollar terms during the year, while Bitcoin declined by about 6 percent and failed to recover after a major drop in October.

This divergence occurred despite geopolitical tensions and rising concerns over global economic stability, conditions that typically support demand for safe-haven assets. Instead of Bitcoin, investors favored gold and silver.

Nate Geraci, President of NovaDius Wealth Management, said Bitcoin still needs to prove itself as a digital store of value, describing it as unstable compared with gold’s long history.

Volatility and Technical Limits Weaken Bitcoin’s Store-of-Value Role

Bitcoin’s sharp price swings remain a major challenge. In October 2025, Bitcoin climbed to around 126,000 US dollars before falling to roughly 87,000 US dollars within six weeks, without a meaningful rebound.

Research cited in the source shows that gold consistently reduces portfolio risk by more than 3 percent, while Bitcoin reduces risk by less than half a percent. High volatility makes Bitcoin less suitable as a stable hedge.

Technical issues further weaken its position. Studies show Bitcoin processes only about seven transactions per second, with average transaction confirmation times reaching 29 minutes during congestion, limiting its practicality compared to traditional payment systems.

Regulation and Investor Trust: Bitcoin Versus Gold

Regulatory uncertainty also weighs on Bitcoin’s credibility as a long-term store of value. Several countries, including China, India, and Bangladesh, prohibit Bitcoin as a legal payment instrument.

In Indonesia, Bank Indonesia banned Bitcoin as a payment method in 2018, while the Financial Services Authority later reaffirmed that crypto assets are permitted only as investment instruments, not legal tender.

These constraints contrast sharply with gold’s global acceptance and legal certainty. While some experts remain optimistic that Bitcoin could evolve into a gold-like asset over time, the source notes that its “digital gold” narrative has yet to be proven, particularly for investors seeking short-term stability.

PHOTO: UNSPLASH

SOURCE:

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