Key Points
- Bitcoin and Gold see a rise amid escalating U.S-China tensions, with investors turning towards safe-haven assets.
- Whale wallets also see a surge, with over 60 new addresses now holding 1,000+ Bitcoin since early March.
The escalating geopolitical tensions between the U.S and China have led both nations to double down on strategic financial assets, albeit in contrasting ways. While the U.S is making efforts to establish itself as a global crypto leader, China has quietly increased its gold reserves by five tonnes in less than a month, signaling a defensive play amid escalating trade tensions.
This comes after Chinese authorities seized 15,000 Bitcoin, worth around $1.4 billion, from illicit operations, pushing local officials to explore disposal strategies.
China’s Gold Push and Bitcoin’s Steady Ascent
According to The Kobeissi Letter, the People’s Bank of China’s accelerated bullion accumulation reflects growing caution in the face of global market instability. On the other hand, Bitcoin has held firm above $87,000 despite recent turbulence, including a sharp drop triggered by Donald Trump’s announcement of a 245% import tax on Chinese goods. This swift rebound has led market watchers to question whether crypto is becoming the new safe haven in a world of uncertain fiat and fractured diplomacy.
Bitcoin’s steady ascent continues to attract heavyweight investors, with fresh data signaling a surge in whale activity. At the time of writing, Bitcoin was trading at $90,107.15, following gains of 3.27% in the last 24 hours.
Gold Prices Soar, Schiff Backs Gold
Glassnode data revealed that over 60 new wallets holding 1,000 Bitcoin or more have emerged since early March. This has pushed the total number of such addresses to 2,100 – the highest level in four months. This spike is a sign of renewed confidence from large holders, even amid shifting macroeconomic pressures.
Meanwhile, Gold prices have soared to $3,401, driven by aggressive institutional buying, especially from China. Analysts like noted crypto skeptic Peter Schiff believe the metal could rally further if political pressure forces the Federal Reserve into rate cuts.
As global markets remain rattled by the escalating U.S-China tariff tensions, investors are increasingly turning to assets they perceive as safe havens – Gold and Bitcoin. While Bitcoin’s appeal as a modern counterpart to Gold has grown, the broader picture remains complex.
ETF outflows totaling nearly $5 billion seemed to hint at investor hesitation, even as the asset’s price held steady. Meanwhile, conflicting narratives around China’s Bitcoin strategy, ranging from strategic accumulation to sizeable sell-offs, have only added to the uncertainty.
However, Bitcoin’s resilience amid such divergent signals underscores its evolving role in global finance. Especially as traders continue to weigh their long-term position in a world defined by economic instability.
