Safe-Haven Fiat Currencies—Swiss Franc, Japanese Yen, and Euro—Outperform Bitcoin Amid Global Market Uncertainty in 2025
In 2025, global financial instability and renewed US trade risks have led to a notable shift in capital flows, with traders favoring traditional safe-haven fiat currencies over cryptocurrencies. Both the Swiss franc (CHF), Japanese yen (JPY), and euro (EUR) have significantly outperformed Bitcoin (BTC) as safe-haven assets. The CHF surged to a multi-year high with a 9% gain against the US dollar, supported by sound financial policies and central bank credibility. The JPY attracted strong inflows as global carry trades unwound and Japan maintained an ultra-loose monetary stance, reinforcing its safe-haven appeal. The EUR gained strength due to growing US debt concerns, eurozone banking reforms, and ECB digital currency initiatives, up 4.26% against the dollar. In contrast, Bitcoin experienced severe volatility, dropping nearly 20% before stabilizing, challenging its narrative as digital gold. Despite increased institutional adoption and ETF approvals, BTC’s correlation with risk assets and erratic behavior highlight investor skepticism during macroeconomic stress. For crypto traders, the growing demand for fiat currencies during periods of market turbulence could mean a temporary pivot away from cryptocurrencies like Bitcoin and altcoins, as traders seek stability and capital preservation.
Bearish
With the Swiss franc, Japanese yen, and euro all outperforming Bitcoin in 2025, investors are increasingly seeking safety in traditional fiat currencies during periods of global market stress. This capital rotation away from Bitcoin and altcoins highlights their perceived risk and undermines the ’digital gold’ narrative, at least in the short-term. The high volatility and strong correlation of Bitcoin with risk assets, despite institutional adoption and ETF launches, diminish its appeal as a reliable store of value. Historically, similar macroeconomic shifts have led to price declines or weak performance in cryptocurrencies as traders prioritize capital preservation. Unless macro conditions stabilize and confidence returns to crypto markets, this trend is likely to continue in the near-term.