As of May 7, 2025, three fiat currencies—the Swiss franc (CHF), Japanese yen (JPY), and euro (EUR)—are exhibiting stronger safe-haven characteristics than Bitcoin. This shift reflects investor responses to global economic uncertainties, including U.S. fiscal instability and geopolitical tensions.
Swiss Franc vs Bitcoin: Safe-Haven Currencies’ Demand Surges in May 2025
The Swiss franc (CHF) continues to outperform Bitcoin (BTC) as a safe-haven asset, with May 2025 data reinforcing investor preference for traditional stability. The CHF index recently surged to 121.59, marking a new multi-year high. On the same chart, the 50-week exponential moving average (EMA) stood at 114.40, confirming the franc’s strong upward momentum. This rally came as global investors fled riskier assets in response to rising trade tensions under Trump’s renewed tariff policies, detailed in a EU Report.
At the same time, Bitcoin traded around $96,901—recovering slightly but still down from its March peak near $107,000. The contrast between these two assets is striking when placed side-by-side. The second chart shows Bitcoin’s historic volatility. Sharp spikes and drawdowns dominate its path, while the CHF/USD line remains steady, anchored around 1.2153. Investors seeking capital preservation amid inflation concerns and geopolitical pressure chose CHF over BTC throughout April and early May.
This shift does not rely on speculation. In April alone, the franc gained over 9% against the U.S. dollar—the strongest monthly rise since the 2008 financial crisis. The appreciation followed Trump‘s unpredictable trade decisions, which redirected capital away from U.S. assets and into neutral currencies. Switzerland’s low national debt, strict financial policies, and credible central bank support the franc’s strength. Even as the Swiss National Bank weighs interest rate cuts to protect exports, the franc continues to attract safe-haven demand.
At the same time, Bitcoin’s image as “digital gold” continues to weaken. Its high correlation with tech stocks and other risk-sensitive assets challenges its reputation as a store of value. Despite steady institutional interest, Bitcoin has not shown the same price stability as gold or the Swiss franc. Ongoing regulatory uncertainty in both the U.S. and EU further limits its appeal among cautious investors.
Japanese Yen vs BTC: JPY Rallies as Traders Flee Risk Assets
The Japanese yen (JPY) strengthened in 2025 as global markets faced rising uncertainty. On May 7, the JPY Currency Index hit 765.8, climbing 0.71% for the week. The USD/JPY pair traded at 0.006896, up 1.2% from the previous week. The 50-week exponential moving average stood at 0.006693, showing that the yen had broken above key resistance levels.
Back in March 2025, during a tech-sector sell-off, USD/JPY dropped from 152 to 145. The move reflected an immediate shift into the yen as traders exited risky positions. Japan’s near-zero interest rates continued to make the yen attractive in global carry trades. When volatility rises, investors unwind these trades, boosting demand for JPY.
The Bank of Japan has kept policy unchanged, avoiding rate hikes. This has maintained the yen’s role as a funding currency. At the same time, geopolitical tension and Trump’s 2025 tariff measures pushed more capital into defensive assets. Investors moved funds into JPY-denominated markets seeking currency stability.
On the same day, Bitcoin traded at $96,953. While BTC posted a 2.8% gain, it showed no clear link to broader safe-haven flows. Bitcoin’s price action remained highly volatile, reacting to speculative moves rather than macroeconomic pressure.
The yen’s steady rise followed direct capital inflows and low-yield positioning. Bitcoin, in contrast, delivered unstable price swings that failed to offer protection during recent equity drawdowns. This divergence confirms that JPY continues to act as a practical hedge when market risk intensifies.
Euro vs Bitcoin: EUR Emerges as a Safe-Haven Currency Amid Dollar Weakness
The euro (EUR) also gained strength in 2025 as institutional investors shifted away from the U.S. dollar amid rising fiscal instability in the United States. The EUR/USD exchange rate reached 1.1345 on May 7, up 4.26% over the past month. Meanwhile, the Euro Currency Index (EXY) rose to 113.51, trading well above its 50-day exponential moving average of 110.60.
This performance follows a series of warnings about U.S. debt sustainability. According to the Financial Times, investors are increasingly worried about Washington’s inability to pass budget reforms, especially after the April 2025 standoff over the debt ceiling. This led to a downgrade watch on U.S. creditworthiness and reduced demand for dollar-denominated assets.
At the same time, the European Central Bank (ECB) coordinated capital flow controls and finalized the integration of a digital euro framework in early 2025. These moves reduced Europe’s exposure to U.S. financial infrastructure and boosted confidence in euro liquidity during external shocks.
Moreover, recent EU banking reforms tightened capital buffers and established joint fiscal backing mechanisms. This added legal and financial guarantees behind the eurozone’s unified monetary policy. As a result, investors seeking lower-risk alternatives rotated into the euro.
Bitcoin gained 17.46% over the same period but showed erratic swings. Its performance remained disconnected from macro shifts, signaling speculative trading rather than capital preservation.
While BTC outperformed in raw returns, the euro’s movement followed clear macroeconomic catalysts, including currency diversification and central bank coordination.
BTC: Volatility Undermines Safe-Haven Status
In early 2025, Bitcoin (BTC) experienced significant price fluctuations, dropping approximately 20% from $109,000 to $88,000. This volatility challenges its role as a stable store of value, especially when compared to traditional safe-haven assets.
Despite institutional adoption and the approval of Bitcoin ETFs, BTC’s price movements remain highly sensitive to market dynamics. For instance, during periods of market stress, Bitcoin’s correlation with equities has increased, undermining its position as an independent hedge.
While Bitcoin’s long-term potential as a digital asset remains, its current volatility and correlation with risk assets suggest it has yet to establish itself as a reliable safe-haven comparable to traditional currency options.
