China, Accelerated gold purchases and Bitcoin also show signs of rebound… Increased demand for safe assets amid US-China tension
Recently, as China rapidly increases its gold reserves, the Bitcoin price is also maintaining the $85,000 level and showing a rebound trend. With rising trade tensions between the United States and China, both gold and Bitcoin are being highlighted again for their value as 'safe assets'.
According to the cryptocurrency specialist media CoinGape on April 21 (local time), the People's Bank of China (PBoC) has recently added 5 tons of gold over the past month, changing the composition of foreign exchange reserves. This move is interpreted as a measure to avoid the dollar and respond to inflation, and it is leading to a trend that stimulates investment demand across safe assets.
In particular, although the cryptocurrency market plummeted after President Donald Trump announced a 245% high tariff on Chinese imports, Bitcoin quickly recovered afterward, rising back to the $85,000 level. This indicates that Bitcoin, along with gold, is acting as an investment alternative amid global uncertainty.
There have been some interpretations suggesting that China is trying to include Bitcoin as a strategic reserve asset, but last week's report that China sold 15,000 BTC on an overseas exchange brought this possibility into question. Nevertheless, the market evaluates China's gold purchases as indirectly beneficial to Bitcoin.
The gold price has hit an all-time high at $3,326 per ounce, and it has risen about $100 in the past week. Similarly, the potential for Bitcoin's rise is being discussed again, and expectations for breaking through $90,000 are rising.
On the other hand, prominent gold advocate Peter Schiff claimed that Bitcoin is still in a bear market, maintaining a cautious perspective. In fact, about $4.8 billion was withdrawn from the Bitcoin spot ETF following the recent record-high net inflow, and profit-realization sales are appearing.
However, cryptocurrency analyst DarkPost emphasized, "Even though ETF outflows are continuing, the Bitcoin price is not shaking significantly," stating that this is evidence that internal market demand and resilience are still strong.
With China's expanded gold purchases and renewed attention to Bitcoin, the question is whether it will prepare another stepping stone for a rise amid escalating global economic instability.