- Bitcoin surged over $87K on April 21, reaching its highest price since March 28.
- BTC rebounded 16% from an April 9 low, nearing its all-time high again.
- China’s gold accumulation and market conditions fuel Bitcoin’s bullish momentum, increasing investor confidence.
Bitcoin prices are on the rise again, shattering a month-long consolidation phase. On April 21, BTC spiked above $87,400, reaching its highest price point since March 28. This move follows a jump of over $3,000 from an intraday low near $84,000 on April 20.
Since hitting a yearly low of just under $75,000 on April 9, Bitcoin has rebounded by 16%, significantly reducing the gap from its all-time high. The recent 2.4% daily gain has propelled Bitcoin to the top end of its sideways channel formed in early March, hinting at a potential breakout.
Market analyst Scott Melker, pointed out the stark contrast between Bitcoin’s rally and the dip in Nasdaq futures, calling attention to Bitcoin’s uncorrelated momentum. Geiger Capital echoed this sentiment, observing a clear decoupling from tech stocks and the U.S. dollar.
Bitcoin’s Surge: A Potential Breakout Pattern
According to an X post by the Kobeissi Letter, China’s aggressive gold accumulation strategy is fueling Bitcoin’s bullish momentum. The People’s Bank of China added five tonnes of gold to its reserves in just one month. This accumulation spree has inadvertently triggered a positive price tailwind for BTC.
BTC remains strong around the $87K level, despite a flurry of negative macroeconomic signals. Investors are attributing this resilience to the rising appeal of BTC as a safe-haven asset, especially amid fears of inflation and currency devaluation prompted by China’s pivot away from the U.S. dollar.
The last event where the U.S. had set 245% of tariffs on goods from China, initialy caused the stock market to fall. However, Bitcoin’s recovery followed the China’s confirmation of its massive gold holdings and further boost of investor’s confidence. But according to other reports, the Chinese government has recently offloaded approximately 15,000, on overseas digital asset exchanges, suggesting that the reserve theory might not hold.
Gold’s Surge Signals Potential BTC Rally Ahead
Gold has surged to $3,326 per ounce, marking a $100 gain in just a week. This rise reflects a renewed wave of institutional interest, largely driven by China’s aggressive gold stockpiling. Speculators believe BTC could follow gold’s trajectory as global interest in hard assets strengthens.
The gold rush is in part a reaction to the US-China trade war, pushing investors toward safe-haven assets. While institutional buyers are quickly picking up gold, BTC is gradually emerging as the digital counterpart, capturing the attention of those concerned about fiat currency and the instability of the global economy.
Despite a steep decline in interest for spot Bitcoin ETFs worth $4.8 billion since their peak—the biggest drop since launch—BTC’s price remains resilient. Despite the outflows, a considerable amount of confidence in BTC is evident due to the price’s firmness under pressure.
Read More: Bitcoin Hits Three-Day Low, Eyes Still Set on $90K Mark