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Highlights
- China has increased its gold reserves by a country mile over the last month.
- Renewed interest in gold sees Bitcoin hold its own amid macroeconomic tensions.
- Bitcoin price sits at $85,000 and shows signs of an uphill climb toward $90K.
China is loading up on its gold holdings, racking up five tonnes in a frenetic accumulation spree over the last month. The push for gold is triggering unintended consequences for Bitcoin price, with BTC comfortably holding the $85K mark.
Bitcoin Price Shows Resilience Amid China’s Gold Rush
According to an X post by the Kobeissi Letter, China is continuing its streak of stacking up gold bars. The latest accumulation spree sees the People’s Bank of China (PBoC) bolster its existing gold holdings by five tonnes over the last month.
While China’s frenetic push for gold continues to raise eyebrows, the Bitcoin price is riding the tailwind of the purchases. At the moment, Bitcoin price is trading at $85,000 despite a whirlwind of negative macroeconomic reports in recent days.
Barely four days ago, Bitcoin and other cryptocurrencies tanked after US President Trump slapped 245% tariffs on China. The recent recovery on the heels of the PBoC’s disclosure of its gold holdings has left investors scratching their heads.
A plausible reason for the BTC price resurgence is its rising safe-haven appeal flowing from China’s gold embrace. Traders are seeing upside in Bitcoin’s value as a hedge against inflation flowing from China’s decision to ditch the US dollar.
Another reason for Bitcoin’s rise is the growing possibility that China is inching toward a Strategic Bitcoin Reserve. However, reports of China selling 15,000 BTC on offshore exchanges poke holes in the Strategic Bitcoin Reserve theory.
Gold Surges To New Highs With BTC Poised To Follow Its Path
The price of gold has soared to new highs, sparking speculation that the Bitcoin price will follow suit. Gold is trading at $3,326 after adding nearly $100 over the last week. The surge in gold prices stems from renewed institutional interest, with China leading the charge.
The US-China tariff wars are powering a mad dash for safe-haven assets, with gold receiving renewed interest. Bitcoin, on the other hand, is set to record similar institutional interest as a complementary safe-haven asset.
However, Peter Schiff warns that Bitcoin is in a bear market, dousing enthusiasm for a push to mirror gold prices. Spot Bitcoin ETFs have recorded the largest drawdown since launch, but Bitcoin price is holding up in a strong show of strength.
“$4.8B has left the ETF market since the cumulative flow ATH,” said cryptocurrency analyst Darkfost. “Meanwhile, the price of BTC has recently remained relatively stable so far, showing limited reaction to this selling pressure.”
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