Neither gold nor the stock market, Bitcoin has generated a lot of profits ever since the war began

The US-Israel-Iran war has affected global crude oil supplies. This has resulted in a decline in stock markets worldwide. During such times, demand for safe-haven investments like gold, the US dollar, and government bonds typically increases. 

However, this time the story is a little different. Since Iran's conflict with the US and Israel began, Bitcoin has emerged as one of the best-performing assets. Gold, on the other hand, has been unable to maintain its gains, and the stock market has also seen significant volatility.

Bitcoin, the world's largest cryptocurrency, has risen nearly 4% since late February to reach a record high of nearly $74,500, a nearly six-week high. 

Although it has since declined slightly, it has still gained more than 12% since the conflict began, outperforming many safe-haven investment options.

Crypto beats gold

Gold is typically the first investment during a crisis, but gold has fallen by about 5% this month. Meanwhile, Bitcoin has surged amid this tension. Not just Bitcoin, other cryptos have also seen gains. 

For example, Ether has risen by nearly 10%, while Solana and XRP have seen gains of 8 to 9%. This clearly indicates that investor confidence is reviving and risk appetite is returning.

Improvement in the oil market provided support

A slight decline in crude oil prices after a record surge and hopes that supplies through the Strait of Hormuz may return to normal have supported the market. Not just small investors, but large investors are also returning. 

Over $763 million in investments were received in the US-listed Bitcoin ETF last week. Total investments in March have reached over $1.3 billion. 

Funds like the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund are seeing steady inflows, indicating that large investors are also now taking an interest in crypto.

Why didn't the gold shine?

There are several reasons why gold hasn't delivered significant returns this time. The US dollar strengthened, making gold more expensive. 

Rising oil prices have increased fears of inflation, reducing expectations that the US will reduce interest rates soon. When interest rates are high, gold becomes less attractive because it doesn't yield any interest.

Is Bitcoin a safe investment now?

It's too early to say that Bitcoin is now a safe investment. Bitcoin was previously considered a risky asset, rising sharply during booms and falling sharply during busts. Its behavior is showing some variation now, but it hasn't become a completely safe investment. 

Trading in crypto often spikes around major global events, suggesting investors use it as a timely investment, not a permanent safe bet. 

Many experts still don't consider it completely safe, as it isn't backed by central banks. It lacks the stability of gold.