As Bitcoin’s ‘Digital Gold’ Story Returns, BNB, SOL, and XRP See Sharp Rises

Bitcoin Hits $87K as Traders Revisit ‘Digital Gold’ Narrative Amid Economic Uncertainty

Bitcoin’s (BTC) surge past the $87,000 mark has reignited discussions around its role as a safe-haven asset, reminiscent of its “digital gold” narrative that gained traction during its early years. This shift comes as gold prices continue to soar and global markets struggle under the weight of trade tensions and economic instability.

On Monday morning in Asia, Bitcoin rallied above $87,000, pushing other major cryptocurrencies, including Cardano’s ADA, BNB Chain’s BNB, XRP, and Ether (ETH), up by as much as 1.5%. The rally reversed previous losses, with Solana’s SOL seeing a 5.2% increase over the past week.

The resurgence of Bitcoin’s appeal as a potential safe-haven asset is linked to growing concerns about inflation and currency devaluation amid ongoing trade wars. The comparison to gold, which has long been viewed as a hedge against financial instability, is gaining momentum.

“While Bitcoin has historically moved in sync with U.S. equities, we’re now observing a shift toward a closer correlation with gold, which has been a reliable safe-haven asset as equities have fallen,” explained Nick Ruck, director at LVRG Research. “Bitcoin’s breakout above $87,000 signals a return of investor confidence as the market calms after tariff-related turmoil. Bitcoin’s ‘digital gold’ narrative is being embraced once again as both assets move in tandem.”

Gold prices also set new records on Monday, rising above $3,380 per ounce, bringing its year-to-date gains to 25%. While Bitcoin has dropped over 20% from its January high of $108,000, the price surge on Monday marks the highest level Bitcoin has seen since early April, following the volatility sparked by President Trump’s tariff announcements.

The U.S. dollar is facing increasing pressure, with the dollar index (DXY) hitting a three-year low. Some analysts argue that much of the negative news is already priced in, which could lead to more upside for Bitcoin in the near future.

“Trump’s push to oust Jerome Powell as Fed Chair and implement rate cuts is causing investors to sell the U.S. dollar and seek refuge in assets like gold, European bonds, and Bitcoin,” said Jeff Mei, COO at BTSE. “As rates are cut, more money enters circulation, which devalues the dollar. This growing pressure on the dollar could act as a catalyst for Bitcoin to emerge as a safe-haven asset.”

Market Analysis

Cardano (ADA) Price Outlook:

• ADA is trading above 63 cents, with strong technical indicators suggesting continued upward momentum despite broader economic challenges.
• The price action has formed a steady ascending channel, with key support at $0.612 holding up during multiple tests.
• A surge in volume occurred on April 21, pushing the price through the $0.630 resistance, and Fibonacci levels suggest the next target is around $0.64.
• The RSI remains below overbought territory, signaling potential for further gains.

XRP Price Forecast:

• XRP has broken out of its months-long sideways trend, with technical indicators pointing toward more gains ahead.
• Fibonacci retracement levels suggest a continued move toward $2.15, with $2.18 as the next resistance if the bullish momentum persists.

Solana (SOL) Market Action:

• Solana has broken decisively above the $135 resistance, surging 10.2% with strong volume confirming the bullish trend.
• The key technical levels are between $129 support and $144 resistance, with substantial realized volume concentrated at these points.
• The asset has formed an ascending channel with higher lows and higher highs, especially noticeable in the rally from April 19 to April 21.
• Momentum indicators reveal bullish divergence, suggesting the trend will continue above the 20-hour moving average.

Binance Coin (BNB) Price Performance:

• BNB has surged 3.2%, breaking through the $600 level as large holders accumulate during periods of market volatility.
• The recent token burn of 1.57 million BNB, worth over $1 billion, has bolstered price momentum.
• Open interest in BNB rose by 3.3% to $760 million, with most traders expecting further price increases.
• Fibonacci extension targets suggest a potential move toward the $605-610 range, assuming the current momentum continues.