Thomas Daniels
Despite widespread assertions that Bitcoin (BTC) serves as a safe haven and digital alternative to gold, analysts at Swiss crypto bank Sygnum suggest the market is treating the asset differently. In its latest market outlook, Sygnum highlights that Bitcoin’s trading behavior increasingly mirrors that of high-beta technology stocks rather than traditional stores of value.
While influential figures, including U.S. Federal Reserve Chair Jerome Powell, have described Bitcoin as a potential reserve asset, the Swiss institution argues that BTC’s recent price movements contradict that narrative. Instead of functioning as a digital version of gold, Bitcoin appears to be emerging as the default proxy for the broader cryptocurrency market.
“Only a marginal portion of Bitcoin’s valuation is attributed to technology-driven use cases,” the analysts wrote. “Its core value continues to derive from the perception of Bitcoin as a store-of-value asset.”
Historically, the sector viewed Ethereum (ETH) as the representative asset for blockchain application exposure, while Bitcoin was regarded as a hedge akin to gold. However, Sygnum suggests this paradigm is shifting. The growing dominance of Bitcoin as a general market proxy has had a measurable impact on investor behavior—particularly evident in the sluggish uptake of spot Ethereum exchange-traded funds (ETFs).
“This is also evidenced by the poor adoption of the Ethereum ETFs,” Sygnum noted. “New investors for now conclude that a Bitcoin holding is sufficient to have exposure to the crypto market.”
The report also raises a cautionary note. If Bitcoin continues to behave like “the Nasdaq on steroids,” its candidacy as a global reserve asset could be undermined. Sygnum emphasizes that U.S. regulatory and policy decisions will be instrumental in shaping Bitcoin’s long-term identity—whether it becomes “digital gold” or remains a proxy for overall crypto market sentiment.
