Bitcoin Stagnates, Gold-Pegged Tokens Rally Amid XAU’s Record High and Rising Tokyo Inflation

Bitcoin Holds Steady as Gold Surges to Record High; Rising Tokyo Inflation Strengthens BOJ Rate Hike Outlook

Bitcoin (BTC) remains in a consolidation phase, hovering near record levels, while gold (XAU) continues its climb amid growing demand for safe-haven assets. Meanwhile, inflation in Tokyo has picked up, reinforcing expectations that the Bank of Japan (BOJ) may continue its policy tightening.

Bitcoin Stalls Just Below Record as Market Awaits Next Move

Bitcoin is trading around $104,400, just 4.7% short of its all-time high, according to CoinDesk data. The rally was briefly interrupted after President Trump reaffirmed his commitment to imposing tariffs on Mexico and Canada, sending a wave of uncertainty through risk assets.

Despite some concerns about a potential short-term pullback, onchain derivatives data suggests bullish sentiment remains intact.

“Some traders anticipate BTC will dip before making a run toward $250K later this year, but Derive.xyz market data shows a low probability of a sharp correction. There’s a 9.7% chance of BTC falling below $75K before March and only a 4.4% chance of hitting $250K before September 26,” said Nick Forster, founder of AI-powered decentralized options platform Derive.xyz.

Options activity on Deribit and CME remains strong, signaling sustained interest from institutional investors and potential accumulation by U.S. state reserves.

Gold Hits New Peak as Demand for Safe-Haven Assets Grows

Gold prices surged to a record $2,799 per ounce early Friday, marking a 6.5% increase for the month. The rally has been fueled by rising central bank purchases and increased gold borrowing activity in London, with speculation that U.S. tariff concerns are prompting heightened gold deliveries.

Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund, noted that gold’s rise against major fiat currencies suggests growing fears of monetary debasement. This could also drive further demand for alternative assets like cryptocurrencies.

Gold-backed digital assets have also rallied, though they continue to trade at a slight discount compared to physical gold. Tether Gold (XAUT) reached a record $2,796 on Bitfinex, while PAXG briefly tested highs above $2,800.

Tokyo Inflation Accelerates, Raising BOJ Policy Expectations

Tokyo’s latest inflation data showed an uptick in consumer prices, with core inflation rising 2.5% year-over-year in January, up from 2.4% in December. This supports the case for additional BOJ rate hikes, following its recent move to raise the policy rate to 0.5%—the highest in over 16 years.

A stronger yen could pose risks to broader financial markets, as was seen during last year’s risk-off shift. In the forex space, AUD/JPY—a key indicator of risk appetite—has broken lower from a consolidation range, signaling further downside and a possible shift toward defensive positioning.