Bitcoin Surges 1% as Yen Strengthens, Gold Hits $3,494

Bitcoin (BTC) maintained its position above $88,000 early Tuesday, as the Japanese yen strengthened against the U.S. dollar, crossing the psychological level of 140. This movement was driven by concerns over tariffs and potential changes in the leadership of the Federal Reserve, which increased the appeal of safe-haven assets. The yen rose nearly 1% to 139.93 against the dollar, marking its strongest level since September. Concurrently, gold surged to fresh highs at $3,494 per ounce in Asian morning hours.

Trump's criticism of the Federal Reserve for the economic fallout from the trade war added to the market's volatility. The possibility of the central bank not cutting rates soon and the potential firing of the Fed chairman further complicated the situation, undermining the appearance of independence that the Federal Reserve currently enjoys.

Bitcoin added just over 1% to continue a steady rise since Sunday. Meanwhile, Ether (ETH), Cardano’s ADA, XRP, and Solana’s SOL showed signs of profit-taking with declines of as much as 3%. Kaspa’s KAS and Polygon’s POL rose as much as 9% to lead gains among mid-caps, albeit on no immediate catalysts.

Traders noted that gains in bitcoin amid global events were cementing its place as a possible risk-off asset. Gerry O'Shea, Head of Global Market Insights at Hashdex, commented that "Today’s rise is further evidence of bitcoin’s growing role as a risk-off asset. In the last five years, bitcoin has had double-digit returns in the months following major geopolitical and macro events such as the COVID pandemic, Russia’s invasion of Ukraine, and the U.S. banking crisis in 2023."

O'Shea added that "Gold is now trading at its nominal all-time high, which could foreshadow strong performance from bitcoin if investors' appetite for risk-off assets increases — while global liquidity is increasing and the US regulatory environment is rapidly improving."

Surging gold prices and bitcoin’s relatively strong price action amid a global market sell-off have some traders revisiting the latter’s role as “digital gold” — a big narrative in bitcoin’s early years but one that has lost steam in recent times.

Chart watchers noted that bitcoin crossed a key technical indicator this week that puts it in place for a higher move in the coming days. Alex Kuptsikevich, the chief market analyst, stated that "Bitcoin jumped to 87,500 on Monday, testing the late March highs. The leading cryptocurrency managed to bounce off the 50-day moving average, around which it had been hovering for the past week and a half."

Kuptsikevich added that "A solid close above the $88,000 area would signal a break in the downtrend and a return to levels above the 200-day moving average. A confident move higher from current levels would be a key signal for the entire market, once again positioning BTC as the flagship set to lead the way."

Moving averages in financial markets are tools used to smooth out price data over time, showing the average price of an asset over a specific period. The 50-day and 200-day moving averages are commonly used because they represent medium- and long-term trends, respectively. These periods are widely followed, making them self-fulfilling as many traders act on them, reinforcing their importance.

ADA broke key resistance at $0.630 amid broader crypto market recovery. Grayscale's spot ADA ETF filing sees approval odds jump to 61%, potentially opening doors for institutional investment. A clear bullish reversal starting April 21, with volume significantly increasing to over 68 million during the breakout candle. Fibonacci retracement levels suggest potential continuation toward $0.650.

XRP established a clear uptrend with a 3.4% overall range ($2.039-$2.143) over the analyzed period. Strong support identified at $2.06, with buyers consistently stepping in at this level. A significant breakout occurred on April 21, when XRP surged 4.3% in just two hours, breaking through previous resistance at $2.09. Volume analysis confirms genuine buying interest, with trading activity spiking to over 100M during breakout periods.

Ethereum enters historical "buy zone" according to analyst Ali Martinez, with ETH trading below the lower MVRV Price Band—a metric that has previously signaled strong buying opportunities. ETH currently trades in tight consolidation between $1,550-$1,630, with critical support at $1,500 and resistance at $1,700, as investors await a decisive breakout amid global economic pressures. A clear support level established at $1,570 with resistance at $1,650, with trading volume spiking to 490,365 during the recent selloff. The 48-hour price range of $1,544-$1,593 (3.1%) suggests continued market instability. Fibonacci retracement levels indicate potential consolidation between $1,565-$1,590 before establishing a definitive trend direction.