Bitcoin Surges 10% to $108,000 as Japan Debt Fears Boost Gold

Bitcoin (BTC) maintained its upward momentum, approaching $108,000 as the May 21 trading session began. This surge coincided with growing concerns over Japan’s national debt, which also boosted gold prices to $3,320 per ounce, the highest level since May 12. The volatility in Japanese fixed income markets, driven by surging 30-year Japanese Government Bond (JGB) yields, has unsettled global investors and contributed to the rally in both Bitcoin and gold.

Trading firm QCP Capital highlighted that Japan’s debt situation has reached a critical point, with the recent gains in Bitcoin fueled by corporate accumulation. The firm suggested that breaking all-time highs could reignite retail interest in Bitcoin. However, there are concerns that a slowdown in corporate buying could trigger profit-taking and potentially reverse the current uptrend.

Despite the bullish sentiment, some analysts have expressed concerns over the strength of the current Bitcoin price trend. Popular trader Roman noted three bearish divergences on the daily relative strength index (RSI) chart, indicating potential resistance at $101,000 before further price movements. Roman’s analysis suggests that the market could see a retest of lower levels before moving higher or lower.

Despite these concerns, there are numerous bullish price targets for Bitcoin. Once all-time highs are breached, $116,000 and $128,000 are popular targets, with some analysts predicting even higher levels, such as $220,000 or more in 2025. Trader and analyst Aksel Kibar reiterated his long-term bullish view, maintaining a $137,000 target for Bitcoin. QCP Capital also noted that Bitcoin has shown remarkable resilience despite macroeconomic headwinds, suggesting that a breakout to new highs could ignite a fresh wave of retail interest and push prices even higher.