Amidst rising tensions in the Middle East, commodity prices like gold and oil have been surging. However, Bitcoin is moving in the opposite direction, sparking another round of debate about whether it's a safe haven asset.

Li Xing, Financial Market Strategy Advisor at Exness, commented, "The escalating conflict in the Middle East is pushing investors towards seeking safety in gold, bolstering its appeal amidst wider market uncertainty." Jeroen Blokland, founder of Blokland Smart Multi-Asset Fund, believes that investors are selling Bitcoin to buy gold.

Meanwhile, precious metals analyst Jesse Colombo stated that unlike precious metals, Bitcoin and cryptocurrencies tend to fall during geopolitical concerns. He added, "This confirms my long-held belief that cryptocurrencies are not a safe haven. They are another risk asset, just like high-flying tech stocks."

On Tuesday, US tech stocks also experienced significant drops, with Apple and Nvidia shares falling by around 3%, and the Nasdaq 100 index plunging over 2%. However, Larry Fink, CEO of BlackRock, said in a Fox Business interview on October 1st that Bitcoin could still be an alternative inflation hedge.

Markus Thielen, Head of Research at 10x Research, noted that Bitcoin was initially designed as a peer-to-peer electronic cash system, not a safe haven asset. He added, "Bitcoin is still in its maturation phase and hasn't fully transitioned to its potential role as a gold alternative, which some believe would happen if governments banned individuals from owning gold."

He stated that until then, "Bitcoin's price will continue to be influenced by economic and liquidity cycles," and the current economic outlook remains weak.