Bitcoin (BTC) held steady above $88,000 early Tuesday as the Japanese yen crossed the psychological level of 140 against the U.S. dollar, as tariff concerns and risks of a Federal Reserve chairman shuffle in the states broadened the appeal of safe-haven assets.
Yen rose nearly 1% to 139.93 against the dollar, its strongest level since September. Gold surged to fresh highs at $3,494 per ounce in Asian morning hours.
Per reports, Trump is blaming the Fed for the economic fallout from the trade war if the central bank doesn’t cut rates soon — and firing the chief usurps the appearance of independence the Federal Reserve currently enjoys.
BTC added just over 1% to continue a steady rise since Sunday. Ether (ETH), Cardano’s ADA, XRP, and Solana’s SOL showed signs of profit-taking with declines of as much as 3%, CoinGecko data shows.
Kaspa’s KAS and Polygon’s POL rose as much as 9% to lead gains among mid-caps, albeit on no immediate catalysts.
Traders pointed out that gains in bitcoin amid global ongoings were cementing its place as a possible risk-off asset.
“Today’s rise is further evidence of bitcoin’s growing role as a risk-off asset,” Gerry O’Shea, Head of Global Market Insights at Hashdex, told CoinDesk in an email. “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.”
“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,” O’Shea added.
Surging gold prices and bitcoin’s (BTC) 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.
What analysts are saying
Meanwhile, chart watchers say bitcoin crossed a key technical indicator this week that puts it in place for a higher move in the coming days.
“Bitcoin jumped to 87,500 on Monday, testing the late March highs,” Alex Kuptsikevich, the FxPro chief market analyst, told CoinDesk. “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.”
“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,” Kuptsikevich added.
Moving averages in financial markets are tools used to smooth out price data over time, showing the average price of an asset (like a stock) 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.
Here’s what a machine’s read of the market is, powered by CoinDesk’s AI-driven market insights bot.
ADA Price Analysis
- 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.
- 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 Price Analysis
- 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.
- 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.
ETH Price Analysis
- 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.
- 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.
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