Bitcoin Pauses Below Record Highs as Gold Hits New Milestones; Inflation in Tokyo Fuels Speculation on BOJ Rate Hikes
Bitcoin (BTC) is holding steady just below its all-time high as gold (XAU) continues to climb amid global uncertainties, while inflation in Tokyo raises expectations for the Bank of Japan (BOJ) to tighten monetary policy further.
Bitcoin Stalls Just Shy of Record as Market Conditions Shift
Bitcoin was trading around $104,400 early on Friday, just a few percentage points short of setting a new all-time high. After a week of strong gains, the cryptocurrency’s upward momentum paused following President Trump’s renewed tariff threat on Mexico and Canada. While some traders anticipate a pullback, onchain data suggests continued bullish sentiment, particularly in the derivatives market.
Nick Forster of Derive.xyz, a decentralized options platform, noted that market sentiment remains positive despite concerns over a possible short-term dip. He highlighted that the chances of BTC falling below $75,000 before March are minimal, with the odds of reaching $250,000 by September even lower, signaling that long-term prospects remain intact.
Gold Shatters Records Amid Growing Global Tensions
Gold prices soared to a new record high of $2,799 per ounce, buoyed by a surge in demand for safe-haven assets. The move comes amid fears of rising import tariffs and broader economic instability, leading investors to seek refuge in the precious metal. As gold prices surge, many are drawing parallels between gold’s rally and the increased risk of currency devaluation, potentially signaling further demand for alternative assets like cryptocurrencies.
Gold-backed tokens are also seeing substantial gains, with Tether Gold (XAUT) reaching a high of $2,796, and PAXG testing record levels above $2,800. These developments further indicate gold’s stronghold as a go-to asset during times of uncertainty.
Tokyo Inflation Sparks Speculation on BOJ Tightening and Yen Strength
Inflation in Tokyo surged to 2.5% in January, the highest rate in recent months, sparking fears of tighter monetary policy from the Bank of Japan (BOJ). The uptick in inflation suggests the BOJ could raise interest rates further, following its recent hike to 0.5%, marking the highest level in more than 16 years. The prospect of higher rates has led to increased strength in the Japanese yen, with market participants bracing for more volatility in risk assets.
The AUD/JPY pair, often seen as a barometer for global risk sentiment, has fallen sharply from its recent consolidation range, signaling broader risk aversion in the markets. Investors are now closely monitoring the yen’s movements, as a stronger yen could dampen appetite for riskier assets, particularly in the cryptocurrency and stock markets.
