BNB, SOL, and XRP Soar as Bitcoin’s ‘Digital Gold’ Concept Resurfaces
Author: Shaurya Malwa, AI Boost | Edited by : Parikshit Mishra Updated: Apr 21, 2025 1:22 PM Published: Apr 21, 2025 7:16 AM
Rising gold prices and relatively strong performance in Bitcoin (BTC) amid a global market sell-off have prompted some traders to reconsider the latter’s status as “digital gold” – a concept popular in Bitcoin’s early years but which has lost favor in recent years.
BTC surged above $87,000 in the early morning hours in Asia, with Cardano’s ADA, BNB Chain’s BNB, XRP and ether (ETH) all up as much as 1.5%. The surge ended Thursday’s declines, with tokens like Solana’s SOL up 5.2% over the past week.
Trade wars fueled by tariffs have raised concerns about inflation and currency devaluation, leading to comparisons with gold, which has historically acted as a hedge.
“While Bitcoin has had a strong correlation with U.S. stocks, this appears to be changing due to a stronger link to rising gold prices, which have been a safe haven during the sharp decline in stocks,” Nick Ruck, director of LVRG Research, said in a Telegram post on Monday.
“Bitcoin has risen above $87,000, signaling renewed investor confidence as the market continues to stabilize after the tariff scare. It’s also worth noting that the concept of Bitcoin digital gold is gaining traction again as both assets are rallying in tandem,” Ruck added.
Gold set new highs on Monday, topping $3,380 an ounce, extending its year-to-date gains to 25%. Bitcoin has fallen more than 20% from its January peak of $108,000, although Monday’s rally above $87,000 lifted the asset to its highest level since Donald Trump’s “liberation day” in early April.
Pressure on the US dollar continues to mount as the dollar index (DXY) fell to a three-year low, with some analysts noting that much of the negative news is already “priced in” and that Bitcoin could rally in the coming days.
“Trump’s move to remove Jerome Powell as Fed Chair and push for lower interest rates is prompting people to sell the US dollar and US government debt and move into other safe havens like gold, European bonds and now Bitcoin,” Jeff May, chief operating officer of BTSE, told CoinDesk in a Telegram post on Monday.
“Ultimately, when rates go down, more money enters the money supply, which causes the U.S. dollar to depreciate. Overall,
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