Bitcoin Steady Above $88K as Yen Strengthens and Gold Hits Record Highs Amid Global Market Shifts

Bitcoin (BTC) remained resilient above $88,000 on Tuesday, as the Japanese yen strengthened against the U.S. dollar and concerns over the Federal Reserve’s monetary policies and ongoing trade tensions escalated. This shift in market dynamics is contributing to the growing interest in safe-haven assets, including Bitcoin.

The yen climbed nearly 1% to 139.93 against the dollar, marking its highest point since September, while gold surged to a fresh all-time high of $3,494 per ounce during early trading in Asia. These price movements reflect a broader trend of investors seeking refuge in assets that are viewed as stores of value amid rising global uncertainties.

In the U.S., former President Donald Trump has publicly criticized the Federal Reserve for its handling of the economy, particularly in relation to the ongoing trade war. Reports have also surfaced suggesting that Trump may seek to replace Fed Chairman Jerome Powell, a move that would significantly impact market sentiment and further erode confidence in U.S. assets.

As Bitcoin continued its upward momentum, gaining just over 1% since Sunday, many altcoins, including Ether (ETH), Cardano (ADA), and XRP, saw declines of up to 3%. This decline was attributed to profit-taking following recent gains and a broader retreat in investor sentiment for non-Bitcoin assets.

Mid-cap altcoins such as Kaspa (KAS) and Polygon (POL) performed strongly, rising up to 9% despite a lack of immediate fundamental triggers. This suggests that, although Bitcoin continues to lead the market, some altcoins are benefiting from broader market recovery.

Bitcoin as a Safe-Haven Asset

Bitcoin’s continued strength amidst a volatile global market further supports its growing narrative as a safe-haven asset. “Bitcoin’s resilience today underscores its evolving role as a risk-off asset,” noted Gerry O’Shea, Head of Global Market Insights at Hashdex. “Historically, Bitcoin has shown strong performance following significant global events, such as the pandemic, geopolitical tensions, and the 2023 U.S. banking crisis.”

O’Shea also pointed out that gold’s recent rally to record highs could foreshadow similar strength in Bitcoin. “As gold reaches new highs, it suggests that investors’ appetite for risk-off assets, including Bitcoin, may be increasing. Coupled with rising global liquidity and improving U.S. regulations, Bitcoin could see continued upside,” he explained.

Bitcoin’s Technical Outlook

Bitcoin’s technical indicators are also pointing toward the potential for further gains. According to Alex Kuptsikevich, chief market analyst at FxPro, Bitcoin’s recent bounce off the 50-day moving average suggests the cryptocurrency could be on track for a breakout.

“Bitcoin’s move to $87,500 on Monday was a key technical event, testing the highs from late March,” Kuptsikevich said. “If Bitcoin can close above $88,000, it could signal the end of the downtrend and pave the way for further upside, potentially leading Bitcoin back above the 200-day moving average.”

The 50-day and 200-day moving averages are crucial technical indicators that help traders assess medium- and long-term trends, making any breakout above these levels significant.

Altcoin Performance

• ADA: Cardano (ADA) surged past key resistance at $0.630 amid a broader crypto market recovery. With the potential approval of Grayscale’s ADA ETF, institutional interest in Cardano could increase, possibly pushing the price higher toward the $0.650 level.
• XRP: XRP has shown strength, establishing an uptrend with a price range between $2.039 and $2.143. On April 21, XRP surged by 4.3% within just two hours, breaking past previous resistance at $2.09. This price action, coupled with strong volume, signals sustained buying interest.
• ETH: Ethereum (ETH) is currently in a consolidation phase between $1,550 and $1,630, with support at $1,570 and resistance at $1,650. Analysts have identified this as a “buy zone” for ETH, with volume spiking during recent sell-offs. Ethereum’s price is expected to either consolidate further or breakout based on broader market movements.