Bitcoin Rises Above $88K on Stronger Yen; ETH, ADA, XRP Decline
Analysts believe that the recent price action in Bitcoin may indicate a possible reversal of the downward trend with potential for further gains.
Shaurya Malwa | Edited by Parikshit Mishra on April 22, 2025, 6:43 AM
What is important to know:
- Bitcoin continues to trade above $88,000, while remaining a risk asset amid global economic uncertainty.
- Gold prices hit a new record of $3,494 an ounce, signaling growing interest in safe-haven assets.
- Analysts suggest that recent changes in the price of Bitcoin may be an indicator of a reversal of the downward trend with the possibility of further gains.
Bitcoin (BTC) held steady above $88,000 in the early hours of Tuesday as the Japanese yen broke the psychological barrier of 140 against the U.S. dollar, amid mounting tariff concerns and the risk of a Federal Reserve leadership change, boosting interest in safe-haven assets.
The yen rose nearly 1% to 139.93 against the dollar, its highest since September. Gold hit fresh highs of $3,494 an ounce in early Asian trading.
Trump is reportedly blaming the Fed for the economic fallout from the trade war if the central bank does not cut rates soon, and firing its chief undermines the veneer of independence the Federal Reserve currently enjoys.
BTC gained more than 1%, continuing its strong gains since Sunday. Ether (ETH), Cardano's ADA, XRP, and Solana's SOL all showed signs of profit taking, falling as much as 3%, according to CoinGecko.
Kaspa's KAS and Polygon's POL rose 9% to lead the gainers among mid-caps, albeit without any clear catalysts.
Traders noted that Bitcoin's rise amid global events strengthens its position as a potential risk-free asset.
“Today’s rally is further evidence of Bitcoin’s growing role as a risk-off asset,” Jerry O’Shea, head of global market research at Hashdex, wrote in an email to CoinDesk. “Over the past five years, Bitcoin has delivered double-digit returns in the months following key geopolitical and macroeconomic events, such as the COVID pandemic, Russia’s invasion of Ukraine, and the 2023 U.S. banking crisis.”
“Gold is currently trading at its nominal all-time high, which could foreshadow strong performance for Bitcoin if investor appetite for risk assets increases amid rising global liquidity and a rapidly improving regulatory environment in the US,” O'Shea added.
Rising gold prices and relatively strong performance in Bitcoin (BTC) amid a global market sell-off have led some traders to reconsider Bitcoin's role as “digital gold” – a popular concept in its early years but one that has become less relevant in recent years.
Analysts' opinions
Meanwhile, analysts say Bitcoin has crossed a major technical level this week, which points to further moves in the coming days.
“Bitcoin jumped to 87,500 on Monday, testing the highs of late March,” Alex Kuptsikevich, chief market analyst at FxPro, told CoinDesk. “The leading cryptocurrency was able to bounce off the 50-day moving average it has been hovering around for the past week and a half.”
“A solid close above the $88,000 area would indicate
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