Our monthly report delves into insights from options volatility to inspire your next crypto move.

: April 2025 saw BTC's implied volatility surge above 75% due to tariff chaos, but it collapsed to 35% within a week, indicating a surprising short-term drop in volatility expectations despite ongoing macro uncertainty.

: BTC's return above $100K was met with muted enthusiasm in the derivatives market, suggesting that 

traders no longer view this level as a significant psychological barrier, and the rally isn’t likely to be sustained.

: ETH significantly outperformed BTC with a 23% rally, leading to increased demand for short-dated calls and a positive shift in the options market, highlighting renewed bullish sentiment.

: Historical trends suggest a potential summer lull in volatility in store for BTC, raising questions about whether this pattern will repeat in 2025 amidst ongoing macroeconomic challenges.

Bitcoin’s volatility plunges in late April

April 2025 witnessed significant volatility in the cryptocurrency market, particularly influenced by US trade policies. As President Trump announced steep reciprocal tariffs, the crypto landscape experienced sharp fluctuations. Bitcoin (BTC) initially demonstrated resilience, despite widespread sell-offs in equities and the US dollar, only to succumb to a decline from $88K to $75K by early April. This period was characterized by a dramatic rise in implied volatility that peaked above 75% as traders sought protection through short-dated puts. However, as the tariffs faced moderation, implied volatility plummeted to 35% by mid-April, marking the lowest level since early March.

Interestingly, while short-tenor volatility collapsed, 

the back end of BTC's term structure remained elevated, signaling that market participants expect heightened volatility in the mid-term

. Amidst this backdrop, realized volatility fell below the five-year seasonal average, paralleling similar trends in previous years and suggesting a 

. The historical pattern contrasts that BTC often experiences a rebound in volatility heading into May, raising questions about whether this trend will persist.

Subdued derivative response suggests Bitcoin rally might not endure

The market's reaction to BTC's resurgence above the $100K threshold was notably subdued compared to previous instances. While BTC rallied 20% following the initial tariff sell-off, the derivatives market displayed a muted response. The 25-delta put/call skew, a measure of market sentiment, indicated only a slight bias toward out-of-the-money calls, contrasting sharply with sentiment previously when BTC first breached the $100K mark in December 2024. This lack of exuberance suggests that traders no longer view $100K as a significant inflection point, raising concerns about the sustainability of the rally. 

Meanwhile, funding rates and implied volatility — though still bullish — didn’t reach the extremes observed in earlier months, indicating more cautious market sentiment. The relationship between BTC's spot price and implied volatility suggests that although traders are optimistic, they’re waiting for BTC to approach previous all-time highs before adjusting their volatility expectations.

Ethereum's option data points to further rally

In stark contrast to BTC, Ethereum (ETH) displayed remarkable resilience and outperformed major cryptocurrencies, gaining 23% overnight following favorable trade news. This rally catalyzed a surge in demand for short-dated calls, pushing front-end volatility expectations significantly higher. The response from the derivatives market was robust, inverting the term structure and indicating renewed bullish sentiment toward ETH, even as it’s trading well below its all-time high.

The ETH options market exhibited a shift from neutral to slightly negative skew, to a 10% bias favoring out-of-the-money calls, reflecting the market's confidence in ETH's potential to regain lost ground. Despite overall macroeconomic uncertainty, the demand for ETH options suggests that traders are optimistic about Ether’s future price movements.

In conclusion, April 2025 highlighted the complex interplay between macroeconomic factors and cryptocurrency market dynamics. While BTC faced challenges in eliciting strong responses from derivatives markets upon recrossing the $100K threshold, ETH's performance indicated a divergence in market sentiment. As traders navigate the evolving landscape, the potential for seasonal volatility patterns and the influence of macroeconomic developments will remain critical factors in shaping future market expectations.

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Bybit X Block Scholes options volatility report (April 2025): Data suggests Bitcoin rally might not endure, but Ether sees further upside

Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

After mostly trading sideways at the end of April 2025, a US-UK trade deal sparked a crypto rally. BTC surged past $100K for the first time since February, but it’s ETH's performance that captured the derivatives market's attention. 

A 23% increase in ETH's spot price led to an inverted term structure and a spike in front-end volatility. The put/call skew for ETH shifted from a bearish bias to a nearly 10% skew toward OTM calls. Other sentiment indicators, such as perp funding rates and futures yield, also supported the rally. In contrast, while BTC's funding rates and skew have increased, its implied volatility remains low at 40%, over 30 points below ETH's 7-day implied volatility.

Please check out the report’s highlights.

ETH’s record performance since 2021 was propelled by positive term structure

ETH has significantly outperformed BTC and the top 10 cryptocurrencies, marking its largest single-day gain since May 2021. The options market has reflected this enthusiasm, with implied volatility for short tenors rising sharply and inverting ETH’s term structure, thus contrasting with BTC's muted, positively sloped structure. The 7-day tenor for ETH is now trading at a 33-point premium over that for BTC. 

While puts dominate BTC's open interest, ETH is seeing the opposite trend. On May 8, 2025, options volumes surged over $120M, more than double the typical monthly volume, with $60M more in calls than puts. ETH now boasts a positive futures curve and funding rates, as well as a strong skew toward OTM calls.

ETH sees exceptionally bullish put/call skew

ETH's substantial outperformance in the current crypto rally has led to bullish sentiment in its derivatives markets. Funding rates have surged, futures yields are strongly positive and the put/call skew has shifted significantly toward OTM calls, now close to 10%. This starkly contrasts with early April, when the skew was 20% toward OTM puts. Although ETH has underperformed (relative to BTC and other "ETH killers"), it has rebounded in this rally, with the ETH/BTC ratio rising after spending most of the year declining.

Open interest for Bitcoin options increased, with implied volatility remaining suppressed

The announcement of the new US administration's first trade deal, nearly 30 days into Trump's 90-day tariff pause, jolted crypto markets, pushing BTC back up above $100K. Surprisingly, implied volatility has remained suppressed, failing to invert BTC's term structure, with front-end volatility trading at around an 18-month low of 35-40%. On May 8, 2025, options volumes surged, with call volume reaching $189M, reversing last week's trend of higher put volumes. Meanwhile, open interest rose steadily to exceed $300M, the highest level this month, but remains significantly larger for puts than for calls despite the price increase.

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Bybit X Block Scholes crypto derivatives analytics report (May 9, 2025): Ether’s put/call skew turns remarkably more bullish than Bitcoin’s

This article explores how Sign works, its flagship products (such as TokenTable, SignPass and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

Sign is an omnichain attestation infrastructure that empowers users and developers to verify real-world claims on-chain. Built for a more transparent and decentralized future, it eliminates the need to “just trust” and enables everyone to verify with cryptographic proof.

This article explores how Sign works, its flagship products (such as TokenTable and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

 is an omnichain attestation protocol designed to make it easy for anyone to verify the authenticity of any claim — 

. Whether it’s a document, credential or user identity, Sign transforms traditional trust models into verifiable, cryptographic attestations. 

Sign’s mission is to replace outdated, opaque validation systems with transparent, 

 proof — enabling a future where “verify” replaces “trust.” Through tools like schema registries and digital signatures, Sign empowers users to bring accountability and integrity to digital interactions.

Sign is developed by the team behind EthSign, a 

-native e-signature and agreement platform. Its core team brings deep experience in 

 development and cross-chain integrations.

The project is backed by top-tier investors, including Sequoia Capital China (now known as HongShan Capital Group), Mirana Ventures, HashKey Capital and Hack VC.

This strategic funding positions Sign as a foundational layer in the web3 infrastructure stack.

Sign allows users to create attestations — cryptographically signed statements that prove the validity of claims, such as credentials, achievements or actions. These digital proofs can be verified by anyone at any time, making them tamperproof and transparent.

Sign’s key technical elements include a schema registry that ensures consistent data formatting, digital signatures proving authenticity, and on- and off-chain attestations with support for revocation or updates

This system acts like a programmable layer for web3, bringing a new level of trust to identity, credentials and data exchange.

TokenTable is Sign’s flagship token distribution platform. It helps projects unlock, distribute and manage tokens transparently and securely at scale.

It uses Sign’s attestation engine to verify token unlocks, 

 and vesting schedules, ensuring traceable, auditable token flows.

SignPass is a blockchain-based identity solution that brings real-world credentials on-chain. One notable implementation is the Sierra Leone PR Card, used for the world’s first government-approved on-chain permanent residency program.

SignPass offers encrypted on-chain records for easy 

 verification, physical ID issuance for daily identity use and streamlined digital application systems for cross-border access.

It showcases the way blockchain can modernize public sector services worldwide.

EthSign is a decentralized contract signing platform that lets users create, sign and store legally binding agreements directly on-chain. It removes intermediaries and ensures documents are immutable and accessible.

EthSign reinforces Sign’s mission by bringing traditional documentation into the realm of verifiable web3 attestations.

The SIGN token is the native utility token powering the Sign ecosystem. It’s used for:

The total supply is capped at 10 billion SIGN, with 1.2 billion tokens in circulation. While the fully diluted valuation (FDV) sits above $746 million as of May 7, the circulating market cap is approximately $89.6 million. SIGN continues to gain traction across exchanges and developer networks.

SIGN is available for trading on Bybit via Spot trading and as a USDT Perpetual contract. Bybit offers up to 75x leverage for the SIGNUSDT Perpetual contract and supports secure, high-liquidity spot trading.

Start exploring the future of attestations with SIGN on Bybit today.

Intermediate

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Sign (SIGN): Web3 protocol for trustless attestation

Compliant trading means following platform rules and avoiding manipulative behavior. Learn more about how you can trade responsibly and compliantly on Bybit.

Crypto trading has come a long way from what used to be the domain of institutional players, and is now open to almost anyone with an internet connection. It’s easier than ever to buy and sell digital assets, try new strategies or build a portfolio from scratch all within minutes.

But with that level of access comes responsibility. As more people join the market, the need for fairness and accountability has become even more important. This isn’t just about price charts or profits — it’s about keeping the playing field level for everyone involved.

At Bybit, we take that responsibility seriously. We're here to offer the tools, safeguards and education you need to help you trade responsibly and to protect the platform from misuse.

This article describes what it actually means to trade compliantly, why it matters — and what can happen if things go off course.

Compliant trading means playing fair, following the platform’s rules, staying within the boundaries of what’s allowed and avoiding anything that could unfairly affect the market.

It’s not about avoiding risk: it’s about knowing what you’re doing, using official tools the right way and making sure your trades aren’t causing harm to yourself or others.

In short, compliant traders don’t just focus on their P&L — they understand that how they conduct themselves while trading matters. Responsible trading protects their accounts, keeps the platform stable and builds long-term credibility in the crypto ecosystem.

Why does responsible and compliant trading matter?

It’s easy to assume that compliance is only something platforms or regulators need to worry about. But in reality, every trader plays a part. When someone attempts to exploit the system — for example, by coordinating mass trades through off-platform channels — the consequences can ripple across the entire market.

In extreme cases, irresponsible trading behavior can:

And if the trades in question are linked to coordinated action, use of fake accounts or external bots? That opens the door to account freezes, compliance reviews and, in some cases, permanent suspension.

Bybit has a responsibility to act when the system is being abused — not just for legal reasons, but in order to protect honest traders.

Common examples of noncompliant or risky behavior

Some traders join Telegram groups or online communities in which KOLs (key opinion leaders) give out coordinated trading instructions (for example, “Buy token A now, sell it in an hour”). This practice isn’t just risky: it often involves a small number of insiders benefiting while the majority end up with losses.

When many people follow the same instruction all at once, it can artificially inflate the price of a low-liquidity token. The KOLs then exit at the top —while others are left with falling prices and unexpected liquidations.

Such a textbook case of market manipulation violates our Terms of Service and, depending upon jurisdiction, could violate financial laws.

Using bots or unverified trading strategies

Some Telegram groups may seem convincing, but trades coordinated off-platform are often unverified and may serve someone else’s agenda. 

 programmed to front-run trades, mimic pump-and-dump strategies or follow unverified signals can trigger compliance red flags and may lead to account restrictions.

Bybit does not support trading bots from unverified sources. They can also trigger flags in our monitoring systems, which may result in account suspension.

Using another person’s account or sharing login credentials — even if it’s with a family member — goes against both Bybit’s policies and global 

(AML) rules. It also opens the door to fraud, loss of funds and irreversible penalties.

Tips for responsible and compliant trading on Bybit

The good news is that there’s a better way to trade — responsibly, safely and with confidence, starting with the right tools, mindset and habits.

Use copy trading the way it’s meant to be used

 is one of Bybit’s most trusted features, and for good reason. It gives users access to professional traders’ strategies while maintaining full transparency. However, it only works if you follow verified 

These traders have been vetted and their stats are fully visible. You can view their P&L, risk settings and trade history. Bybit also provides built-in tools, such as 

 and staking products allow you to earn passive yield with minimal effort. These products are fully backed by our infrastructure and undergo regular audits, and are a compliant way to generate returns without chasing risky trades.

No matter how convincing a Telegram group may sound, remember that trades executed outside of regulated channels are unverified and often unaccountable. They may be coordinated for someone else’s gain.

 offers a wide range of articles and tutorials, covering everything from indicators and oscillators to advanced portfolio strategies. Before following any external signal, it’s worth spending 10 minutes to understand the rationale behind it. In trading, knowledge is your best form of compliance. Before you enter any position, ensure that you fully understand the asset you're trading, the current market conditions and the risks involved.

, never share your login credentials, and always enable two-factor (2FA) authentication. In addition, all trading activity should originate from your own account and remain under your own control.

Bybit’s systems are designed to flag irregular behavior. If your account is found to be engaging in prohibited activity, even unintentionally, you may be:

We take these steps in order to protect the broader user base and to uphold market fairness.

Being compliant doesn’t mean missing out on opportunity. In fact, it’s the opposite. It means you’re using the platform the way it was designed, with safeguards, transparency and trust. Shortcuts might look appealing in the short term, but they rarely end well. The most successful traders on Bybit are the ones who understand risk, stay informed and trade with integrity.

Take the time to learn and use the tools available to you. And remember: protecting your account starts with choosing how you’ll trade.

Beginner

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How to trade compliantly and responsibly on Bybit

Bybit Learn

Bitcoin

Investing

Can Bitcoin replace gold as the go-to safe-haven asset? Explore how 2025's market turmoil reshaped investor sentiment toward BTC vs. gold.

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The early months of 2025 have proven tough indeed for the stock market. After the newly elected POTUS Donald Trump was sworn in in late January, he quickly raised the issue of tariffs on imports to the US, a key pledge from his election campaign. The market reacted nervously, with the S&P 500 and Nasdaq-100 dropping 10% and 14% (respectively) between February 20 and March 12, some of the steepest declines for equities in many years.

 (BTC) joined the stock market during the February-March slump, shedding about 18% of its value. Needless to say, the ultimate safe-haven asset, 

, gained handsomely during the slump, as often happens during periods of uncertainty and stock market corrections or crashes.

However, another major stressor awaited the markets in April 2025. Trump's “Liberation Day” executive order imposing across-the-board import tariffs on most countries ignited another sell-off in equities. Barely coming to their senses after the February-March knockdown, US stocks absorbed another major hit. Yet, on this occasion, Bitcoin reacted altogether differently — the world's leading cryptocurrency rallied strongly after April 7, posting a completely divergent performance from that of the stock market.

Bitcoin's April rally, which is continuing into early May, has led many analysts and investors to ask a novel question: Has BTC become a new kind of safe-haven asset that can protect your investment during stock market declines? And if so, can Bitcoin actually overtake gold as the safe-haven asset of choice? In this article, we’ll examine the 

 comparison through the lens of an investor looking for the optimal safe-haven asset, for now and for future 

 in equities, which some analysts believe will be in abundance under the current White House administration.

Bitcoin's journey to recognition as a legitimate investment asset hasn't been easy. For years after its 2009 launch, it was largely viewed as a technology shtick with no real-world value. However, the seminal digital asset started to gain recognition in the investment mainstream amidst news of its undeniably gigantic returns.

The first notable Bitcoin bull run was the 2017 mega-rally. Having begun the year valued at around $1,000, BTC was worth $14,093 on the last day of December, a return on investment of more than 13,000%. Investors 

In early 2018, Bitcoin began to lose ground, steadily shaking off its remarkable 2017 gains. Until late 2020, Bitcoin couldn’t return to these late-2017 levels, a three-year fall from grace. Consequently, investors and traders viewed it largely as 

 and speculative, with little chance of regulatory acceptance into the mainstream finance world.

However, Bitcoin’s ability to thrive during periods of wider economic turbulence clearly manifested itself for the first time amidst the 2018–19 US-China trade war. Between mid-2018 and mid-2019, the US and China imposed tariffs on each other’s imports, igniting the first modern trade war between the two nations. While most markets experienced turbulence or declines, Bitcoin rallied strongly between April and June 2019, right at a time when the impact of tariffs was being felt throughout the economy.

Interest in Bitcoin as a legitimate investment asset skyrocketed between late 2021 and early 2024, thanks to enthusiastic institutional investor acceptance. In October 2021, the Securities and Exchange Commission (SEC) approved the first 

 (ETF). Then, in January 2024, the SEC provided a bulk 

As a result of these approvals, institutional investors rushed to Bitcoin, propping up its price and establishing it as a mainstream investment product.

Until April 2025, Bitcoin's reputation remained that of an extremely volatile, high-risk and high-reward asset. In recent times, it also fell largely in line with the stock market's direction as a classic, high-growth asset. But when the second Trump administration announced wide-ranging tariffs on Apr 2, 2025, named “Liberation Day,” BTC’s performance diverged notably from that of the stock market.

Major stock indices, such as the S&P 500 and Nasdaq-100, declined sharply in early April, and then began a slow and uncertain recovery from those losses. In contrast, Bitcoin, after a quick dip from April 2–7, rallied strongly afterward. As of May 7, 2025, it’s up approximately 29% from a month ago.

Bitcoin's strong performance beginning in April 2025 — at a time when the stock market dealt with losses, uncertainty and dismally low investor confidence — prompted comparisons with the classic safe-haven asset, gold. The question now is: Has Bitcoin evolved into a safe-haven asset, perhaps a more volatile counterpart to gold?

For thousands of years, gold has been valued by humans as a reliable store of value, as well as a currency. Its reputation as a safe-haven asset during times of economic uncertainty and declines is well-known. One of the most actively traded assets in the financial world, the yellow metal tends to attract investors trying to protect their wealth when the stock market is sliding.

While gold has been an ultimate store-of-value asset traded worldwide for millennia, the first modern mechanism for setting its market price was first established in 1919 in London. In September 1919, five major gold bullion traders — N.M. Rothschild & Sons, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co. and Sharps & Wilkins — agreed (via regular meetings or telephone calls) to set a unified market price for gold.

Gold's popularity and its standing in the global financial system were dealt a massive blow in 1933, when US President Franklin Roosevelt signed an executive order that required Americans to turn over their gold holdings to the government for a fixed price of $20.67 per troy ounce. Aside from small quantities, private ownership of gold was now forbidden. Such draconian restrictions on gold lasted until 1974, when US President Gerald Ford repealed the order; but the effective ban on private ownership of gold in the US between 1933 and 1974 severely limited trading activity for the metal commodity.

Following the repeal of Roosevelt's gold-banning executive order, gold 

 commenced on Dec 31, 1974, on the COMEX futures exchange in New York. This signified the start of the modern era for gold trading on regulated financial markets. Once again, gold became one of the world’s key asset classes. Since then, gold has typically, though not always, had negative correlations with the stock market, and has acted as a safe-haven asset during equity bear markets.

Investing in Bitcoin vs. investing in gold

In recent years, both gold and Bitcoin have done well. It should be noted that investors have rarely viewed gold as a growth asset. Instead, its role has been that of a value protector during market declines. The table below shows the return rates for gold, Bitcoin and the stock market’s primary index, the S&P 500, for short-term periods (the past month and six months), as well as longer-term periods (the past year and five years). These figures are valid as of May 7, 2025, and are based on data from TradingView.

The data in the table clearly demonstrates that Bitcoin has performed better than gold (or stocks, for that matter). At the same time, gold has also done its job of protecting investment value, significantly outperforming the stock market over the past month, six months and 12 months — periods strongly affected by the recent and ongoing tariff wars ignited by the Trump administration. For instance, an average stock market investor has actually incurred small losses (of –0.7%) within the past six months, while gold investments have grown by a respectable 18% during the same period — an outstanding result in the current gloomy economic climate.

Over the long-term period of five years, gold and the S&P 500 have seen growth rates of similar magnitude (90.5% and 98.2%, respectively) during times of both market optimism/growth and stock declines (e.g., the first half of 2022, during which the S&P 500 dove 23%).

While gold has simply done its job as a hedge against stock market troubles, Bitcoin has done exactly that and more — its performance over these four analysis windows indicates that the world’s top cryptocurrency has acted as a safe-haven asset on steroids, delivering both protection against bear markets in equities and significant returns.

While Bitcoin has resoundingly beaten gold in terms of historical performance in recent years, it should also be noted that it remains more volatile than gold — with one crucial caveat: Bitcoin’s volatility over the past year (as measured by the coefficient of variation) is around 20%, while the same coefficient for gold (over the same yearly period) is 10%. 

Although Bitcoin is twice as volatile as gold, based on these estimates, these figures don't exactly paint a picture of an asset that’s wildly more volatile than gold, as many investors believe. Moreover, in the first four months since the start of 2025, the two assets have had an even smaller difference in terms of volatility — 8.3% for Bitcoin and 6.8% for gold, based on their daily prices.

Clearly, the new market realities are challenging old beliefs. Although Bitcoin remains more volatile than gold, the difference in volatility levels between the two assets may no longer be as large as it was in the past — at least during periods of significant price moves for gold, as in recent months.

Gold has traditionally been viewed as an excellent hedge against inflation, as well as even more extreme events, such as currency devaluation. It typically retains its value or grows in times during which fiat currencies may lose their real purchasing power due to inflationary pressures.

Bitcoin, on the other hand, hasn't traditionally been considered an inflation hedge. For all of 2022 and much of 2023, high inflation prevailed in the US. During these two years, Bitcoin behaved completely differently: it kept falling throughout 2022, but rallied strongly for most of 2023. This indicates that it may not yet exhibit one of the key properties of a safe-haven asset — the ability to hedge against inflationary value losses.

Both gold and Bitcoin feature liquid and vibrant markets. However, gold's liquidity is far higher than that of Bitcoin. Daily trading volumes for gold are typically between $200 and $300 billion, while Bitcoin's are about one-tenth of these figures. Gold's market cap stands at over $22 trillion, whereas Bitcoin's capitalization is $1.9 trillion, around 11.5 times lower.

Gold is easily accessible for institutional and retail investors via brokerages that offer gold-linked ETFs and gold-based futures contracts. You can also purchase physical gold in the form of gold coins and bullion.

Bitcoin is also a relatively easily accessible asset, as long as you’re crypto-savvy. It can be traded on 

 (DEXs) and directly through the Bitcoin blockchain via the 

 route. However, investors unfamiliar with blockchain technology (or those who prefer to stick to regulated exchanges) may find Bitcoin less accessible than gold.

, which are linked directly to blockchain addresses or to accounts at crypto exchanges. While holding funds in such a wallet is generally safe if you follow all the due diligence procedures, 

 do take place in the blockchain world. During such hacks, your BTC funds held in a crypto wallet might be compromised or even lost.

There are certain storage and security concerns for gold as well — at least if you invest in physical gold, rather than gold ETFs or futures. Bullion and other types of physical gold need to be securely stored. There are many gold storage providers on the market. These companies can keep your physical gold safe. However, there are fees involved for having your gold protected at these providers' secure premises. Additionally, these companies may be vulnerable to criminal activity and theft of the stored gold, although reputable providers have proven and reliable security standards.

Both gold and Bitcoin involve regulatory and market risks. Although gold is widely accepted in regulated markets, there might be issues with 

 arising from trading gold, particularly in the case of cross-border transactions. It should also be noted that gold is a non-sovereign asset — that is, it’s not issued or supported by governments or central banks, although they may use it as a reserve asset. Thus, gold's value is guaranteed only by market demand.

Bitcoin is much less regulated than gold. Although the US is moving toward comprehensive regulation for cryptocurrencies, a unified framework in this area still doesn’t exist (as of early May 2025). At the same time, a number of SEC-approved Bitcoin Spot and Futures ETFs provide access to the asset via the regulated environment of stock exchanges.

Similar to gold, Bitcoin is a non-sovereign asset, sometimes even referred to as digital gold. Its decentralized nature ensures independence from any government. Like gold, Bitcoin's value is derived solely from market demand.

Gold is among the most stable and secure assets in financial markets. The precious metal tends to retain its value and rise during periods when those of growth-oriented assets decline. However, prolonged bull markets can dampen the long-term performance of gold, at least relative to other investment opportunities. Over a sufficiently long period (e.g., five years or more), we may expect the stock market to go through periods of both growth and decline. While bear markets in equities are likely to boost gold, bull runs may lead to it losing ground.

In an earlier section of this article, we noted that gold and the S&P 500 performed quite similarly over the past five years. This time interval in the US economy involved several adverse events — the stock market decline of H1 2022, high inflation in 2022 and 2023 and, most recently, market slumps in February and April 2025 caused by Trump's notorious tariffs. Thus, gold has done its job of protecting investor value over the long term during these five years. 

At the same time, although these years involved several uncomfortable periods for stocks, gold hasn't been able to outperform the S&P 500 at all, posting an 80% five-year growth rate vs. 99% for the stock market index.

This is the whole idea behind investing in gold — it’s rarely a growth-oriented exercise, and is almost always an endeavor to protect yourself against losses.

In contrast, Bitcoin remains a growth asset, albeit one that has recently demonstrated potential to act as a safe-haven asset in times of stock market adversities. Its long-term value is also closely linked to its issuance and supply-limitation mechanisms. New Bitcoin is mined every ten minutes on the BTC network, with the release schedule subject to quadrennial 

Additionally, Bitcoin’s maximum supply is 

. Per the Bitcoin blockchain’s rules, there will never be more than 21 million BTC in existence. However, Bitcoin will only reach this limit around 2140. Bitcoin's limited supply, regular halvings and supply capping make it a scarce asset. Even though Bitcoin may not repeat its massive gains of yesteryear, the crypto's deflationary properties will continue to support its price in the future.

From a safety perspective, gold remains the preferred choice. In times of bear markets and economic uncertainty, gold does its job of protecting your funds from losses. Compared to Bitcoin, it's less volatile, more liquid and better regulated.

However, your safe-haven portfolio doesn’t have to be based on a single asset. Diversifying your investment for bear markets should ideally involve both an established and an emerging safe-haven asset. Bitcoin’s latest run in April 2025 demonstrated that it can work to counter potential slumps in equities. Additionally, Bitcoin has delivered better returns than gold over both short-term and long-term periods.

As such, a prudent strategy would involve allocating some of your funds to gold as a safe, regulated, low-volatility and highly liquid asset, while investing the remainder in Bitcoin as an emerging safe-haven asset that’s high-growth and volatile, but still sufficiently divergent from stocks.

Bybit offers you three ways to invest in gold — via 

 and crypto Perpetual contracts based on gold-backed cryptocurrencies (e.g., 

). For Bitcoin investing, the exchange offers you several options, including

While Bitcoin, the king of digital currencies, may not replace gold any time soon as the safe-haven asset of choice, it may be a viable addition to a portfolio designed to withstand stock market troubles. Bitcoin's high-growth nature, coupled with its emerging ability to thrive at times of capital flight from stocks, positions it as a new type of safe-haven asset — one that may not rival gold's stability and security, but can nevertheless act as a great diversifier for and counterbalance to the world’s most famous precious metal. Thanks to Bitcoin, safe-haven portfolios can focus both on value protection and growth, not merely on the former.

Can Bitcoin overtake gold as the ultimate safe-haven asset?

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Can Bitcoin overtake gold as the ultimate safe-haven asset?

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