With increasing attention to the escalating U.S.-China trade tensions and a weak dollar (gold), a traditional safe haven asset that broke previous records to $3,384 per ounce on April 21, 2025.
Soon after, Bitcoin followed a similar trajectory, soaring sharply to the $87,000 level, a high point in nearly a month. The campaign is in response to mid-2020, when BTC began to be recognized by institutional investors as “digital gold.”
Bitcoin’s performance is silent and suspicious
TradingView data shows that Bitcoin’s dominance (BTC.D) exceeded 64% in mid-April (the highest level since 2021). The surge reflects the return on “safe haven” assets in the cryptocurrency market as capital temporarily exits more volatile Altcoins.
Bitcoin Advantages – Source: TradingView
Market history shows that every major crypto bull cycle begins with Bitcoin’s advancement before momentum spills onto other digital assets. Analysts see the rise in BTC’s advantage as a signal of positive accumulation in the new growth stage.
Two structural factors have sparked this new optimism: the Bitcoin halving event in April 2024 and re-flow into the spot Bitcoin ETF.
According to BlockChain.news, on April 17, the net inflow of US listed Bitcoin ETFs reached US$169 million, the highest in nearly a month. BlackRock’s IBIT funds account for more than 75% of the total capital. Institutional investors see the trend as a strong reaction to the correction of the $74,000 peak in March.
In the long run, halving will reduce the daily BTC issuance by half, which will naturally cause pressure to rise. Historical data show that in all three previous cycles, BTC prices soared 6 to 12 months after each halving event.
Read more: JP Morgan: Investors prefer gold over Bitcoin
Long-term forecast: $1 million to $1.5 million – Hope or hype?
Robert Kiyosaki, author of bestselling book Rich dad, poor dadrecently reiterated his belief that Bitcoin could reach $1 million by 2035. In an article on X, he warned: “A Great Depression is coming. Credit card debt, student loans and state debt are exploding. Unemployment is increasing and pensions are going bankrupt. You should reserve too late on gold, silver and Bitcoin.”
Kiyosaki’s arguments focus on the imminent collapse of the traditional financial system. He believes that the government and central banks will not be able to prevent debt and currency from devaluing. For him, Bitcoin is an “escaping system” asset, just as gold did in the 20th century.
Meanwhile, Ark Investment CEO Cathie Wood sets more ambitious goals. Wood said in a recent interview with Bloomberg that if institutional investors continue to increase their impact on digital assets, Bitcoin will reach $1.5 million by 2030.
She believes that the market is still in its early stages of adoption, and the transition of only 2-3% of global assets to Bitcoin is enough to trigger a large-scale bull cycle.
“Bitcoin is the ideal digital solution for scarcity. Institutions tend to be market-oriented. If they step in completely, you won’t have time to board the train.”
However, not everyone shares this optimism. “Whenever the market bets are staked, they often underestimate the risks in the real world,” senior analyst Benjamin Cowen warned in an April 20 newsletter. “If the Fed keeps higher than expected rates, or if the U.S. imposes new tax or mining restrictions, the entire rally could reverse in a few days.”
Trump and China: Potential risks to cryptocurrency markets
The recent rise in gold and Bitcoin prices is not only driven by the narrative of “safe haven assets”. Global macroeconomic forces, especially from China and the United States, are putting new invisible pressure on the digital asset market.
The People’s Bank of China (PBOC) has just purchased gold for the fifth consecutive month. In March 2025 alone, China added 5 metric tons to its reserves, bringing the official total to a record 2,292 tons, accounting for 6.5% of the country’s total foreign exchange.
However, the real number may be significantly higher. According to a new report by Goldman Sachs, it is estimated that China purchased up to 50 tons of gold in February, 10 times the official report. Over the past three years, China has traded far more gold on the London OTC market than publicly disclosed, suggesting that Beijing is quietly storing gold to reduce its reliance on the US dollar and the Western financial system.
“It’s not just precious metals; it’s a geopolitical strategy,” noted a senior analyst at ANZ Bank. “China is clearly preparing for a long period of fiscal tensions with the United States.”
Source: Kobeissiletter
As China turns to gold, Trump’s United States seems to be entering a new era of “nationalization of Bitcoin”.
On the surface, this seems to be a historic milestone, viewing Bitcoin as an integral part of the national financial strategy. However, several experts raised concerns about the potential long-term consequences.
Several crypto companies linked to Eric Trump and Jared Kushner seem to benefit from favorable policies in the Trump era. These include privileged access to state-owned Bitcoin reserves and federal digital asset contracts.
Renae Warner of Georgetown warned that economic power should not rely on politicians and that Bitcoin must maintain political independence.
Finally, Coinglass data shows that the long positions are clustered at $9.1K – $95K, while the shorts are stacked at $8.4K $8.4K. If BTC violates $90,000 in losses, a major short squeeze could occur, triggering an automatic buy and a sharp price surge.
However, a decline below $85,000 could trigger a long period of liquidation cascade and a sharp decline in hours.
in conclusion
It may mark a new Bitcoin growth cycle driven by halving, ETF inflows and global economic shifts. With China’s hoarding gold and Trump’s eyes on Bitcoin control, digital assets are becoming national strategic tools.
Despite this, investors should be cautious about alleviating their optimism. Raised interest rates, miner taxes and political risks threaten the momentum of Bitcoin. Is this a true super loop, or a brief gathering in the midst of lingering macro uncertainty?
Read more: Upbit and Bithumb: New Hope for Altcoin Holders
