Bitcoin’s Resurgence Above $87K Highlights Growing ‘Digital Gold’ Appeal Amid Economic Instability
Bitcoin (BTC) is attracting renewed interest as a potential safe-haven asset, drawing comparisons to gold as it soared above $87,000 on Monday. Amid a global market sell-off driven by fears of inflation and currency devaluation, traders are revisiting Bitcoin’s role as “digital gold,” a narrative that had lost momentum in recent years but is now regaining traction.
In the early hours of trading in Asia, Bitcoin surged above $87,300, reversing the declines of the previous week. Major altcoins such as Cardano’s ADA, Binance Coin (BNB), XRP, and Ether (ETH) saw modest increases of up to 1.5%. Solana (SOL) notably led the charge with a 5.2% weekly gain, further suggesting that the broader crypto market is benefiting from the renewed interest in Bitcoin.
The resurgence of Bitcoin’s appeal as a hedge against economic uncertainty comes amid a spike in gold prices, which have recently surpassed $3,380 per ounce, marking a 25% gain this year. As concerns over inflation rise, Bitcoin’s increasing correlation with gold is being highlighted by market analysts, as both assets share the role of being safe havens in times of financial instability.
“Bitcoin’s price action is aligning more closely with the price of gold than with traditional U.S. equities, which have been under pressure due to trade tariffs and economic fears,” said Nick Ruck, director at LVRG Research. “The move above $87,000 is a sign of renewed investor confidence, and it aligns with Bitcoin’s emerging status as a safe-haven asset.”
Bitcoin’s surge on Monday also coincided with a significant drop in the U.S. dollar index (DXY), which fell to a three-year low. The weakening dollar has contributed to the growing demand for alternative assets like Bitcoin and gold, which are traditionally seen as stores of value in times of fiat currency volatility.
“The ongoing trade conflicts and President Trump’s efforts to replace Jerome Powell as the head of the Federal Reserve have pushed investors away from the dollar and U.S. government debt,” said Jeff Mei, COO at BTSE. “This has created an environment where Bitcoin, along with gold, could see further upside as people seek safer assets.”
Technical Market Overview:
Cardano (ADA) Price Update:
- ADA has managed to stay above the 63-cent mark, with indicators suggesting continued bullish momentum despite the broader macroeconomic headwinds.
- The cryptocurrency has formed a clear ascending channel, and the key support level at $0.612 has held up after multiple tests.
- A volume spike on April 21 pushed the price past resistance at $0.630. The next Fibonacci extension target is $0.64, signaling further upside potential.
- RSI is not in overbought territory, suggesting room for continued upward momentum.
XRP Price Outlook:
- XRP has broken out of its extended consolidation phase, signaling a potential upward trend.
- Fibonacci retracement levels indicate that XRP could move toward the $2.15 mark, with $2.18 being the next target if the bullish trend persists.
Solana (SOL) Market Behavior:
- Solana has surged past the critical $135 resistance, rising by 10.2% and establishing a new support zone. Volume analysis confirms strong buying interest.
- The key technical levels are between $129 support and $144 resistance, with a large portion of realized volume concentrated at these price points.
- The formation of an ascending channel and the higher lows and highs seen in the April 19-21 rally suggest a continuation of the bullish trend.
- Momentum indicators show bullish divergence, indicating sustained strength in Solana’s price.
Binance Coin (BNB) Price Action:
- BNB broke above the $600 mark with a 3.2% gain, as large holders accumulate the asset amid ongoing market volatility.
- The recent quarterly burn of 1.57 million BNB, valued at over $1 billion, has helped strengthen the bullish trend.
- Open interest in BNB has increased by 3.3%, reaching $760 million, with 68% of traders anticipating further price increases.
- The next target for BNB, based on Fibonacci extension levels, is in the $605-$610 range, provided the current momentum continues.
