Bitcoin’s price rally has hit a temporary roadblock, trading near $104,300 on Friday. Just 4.7% shy of its all-time high, BTC’s momentum slowed as traders shifted their focus to gold, a traditional safe-haven asset. Gold surged to a record $2,799 per ounce after President Trump’s renewed tariff threats, according to Reuters. This spurred a rush in gold borrowing and heightened demand for gold-backed tokens like Tether Gold (XAUT) and PAXG, which are following physical gold’s price surge.
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Derivatives Data Suggests Bullish Outlook for BTC
Despite the pause, on-chain derivatives activity indicates continued optimism. Nick Forster, founder of Derive.xyz, told CoinDesk that market data suggests a low likelihood of BTC falling below $75K before March. Flows on platforms like Deribit and CME point to growing bullish momentum, particularly with discussions of U.S. state-level Bitcoin reserves gaining traction.
Tokyo Inflation Boosts Gold Case
Adding to gold’s appeal, Tokyo’s inflation rate accelerated to 2.5% in January. Analysts see this rise supporting further Bank of Japan rate hikes, strengthening the yen and potentially adding more pressure on risk assets.
Key Takeaway
Bitcoin’s rally may have slowed, but the bigger picture remains optimistic with bullish signals in the derivatives market and growing interest in U.S. state-level Bitcoin reserves. Meanwhile, gold’s record surge has strengthened safe-haven demand, lifting gold-backed tokens. With inflation on the rise in Tokyo, further Bank of Japan rate hikes could shape global risk sentiment.