Bitcoin’s Resilience Above $88K Amid Global Market Turmoil as Yen Strengthens
Bitcoin (BTC) held its ground above $88,000 early on Tuesday, driven by a surge in the Japanese yen to a three-month high of 140 against the U.S. dollar. The currency’s rise, combined with broader market concerns, fueled increased interest in safe-haven assets such as gold and bitcoin.
The yen appreciated nearly 1% to 139.93 against the dollar, its strongest level since September, while gold set a new record, reaching $3,494 per ounce in Asian morning trading.
Reports suggest that former President Donald Trump has intensified pressure on the Federal Reserve to lower interest rates, blaming the central bank for the economic repercussions of the ongoing trade war. The potential for a Federal Reserve leadership change has further contributed to market uncertainty and growing demand for non-traditional assets like bitcoin.
Bitcoin saw a modest 1% rise as it continued its upward momentum since Sunday. Meanwhile, major altcoins such as Ether (ETH), Cardano’s ADA, XRP, and Solana’s SOL experienced some profit-taking, with declines of up to 3%, according to CoinGecko.
Mid-cap coins like Kaspa (KAS) and Polygon (POL) rose by as much as 9%, despite the absence of significant catalysts driving the moves.
Traders are increasingly viewing bitcoin as a “risk-off” asset, cementing its role in uncertain times. “Today’s price action is further proof of bitcoin’s growing status as a risk-off asset,” noted Gerry O’Shea, Head of Global Market Insights at Hashdex. He pointed out that bitcoin has shown strong returns following major geopolitical events such as the COVID-19 pandemic, Russia’s invasion of Ukraine, and the 2023 U.S. banking crisis.
O’Shea also highlighted the correlation between gold’s recent all-time high and bitcoin’s price action. “With global liquidity on the rise and the U.S. regulatory environment improving, bitcoin could see further upward movement if demand for safe-haven assets continues to grow,” he added.
Bitcoin’s strong performance amid a global market sell-off has revived discussions around its role as “digital gold”—a narrative that has faded somewhat in recent years.
Bitcoin’s Technical Outlook
From a technical perspective, bitcoin’s recent price action has crossed a critical threshold. According to Alex Kuptsikevich, chief market analyst at FxPro, bitcoin’s bounce off the 50-day moving average—where it had been trading for the past week and a half—signals a potential break from its downtrend.
“Bitcoin’s rise to $87,500 on Monday, testing the late March highs, was a positive sign,” Kuptsikevich said. “A solid close above the $88,000 level would indicate a break in the downtrend, potentially paving the way for further upward movement above the 200-day moving average.”
The 50-day and 200-day moving averages are closely watched by traders as indicators of medium- and long-term trends. A break above these levels would be seen as a bullish signal, with bitcoin potentially leading the market higher.
Altcoin Price Analysis
- ADA: Cardano’s ADA recently broke past resistance at $0.630 amid a broader crypto market recovery. The approval of Grayscale’s spot ADA ETF filing has boosted institutional investment prospects, and a bullish reversal starting on April 21 suggests continued upward momentum, with targets around $0.650.
- XRP: XRP has established an uptrend, with a 3.4% range from $2.039 to $2.143. A significant breakout occurred on April 21, when XRP surged 4.3% in just two hours, breaking through the $2.09 resistance. Volume analysis supports the bullish narrative, with trading activity spiking to over 100 million during breakout periods.
- ETH: Ethereum has entered a historical “buy zone,” according to analyst Ali Martinez, as ETH trades below the lower MVRV Price Band—an indicator that has previously signaled strong buying opportunities. ETH is consolidating between $1,550 and $1,630, with support at $1,570 and resistance at $1,650. Traders are awaiting a decisive breakout amid global economic uncertainty, with potential consolidation around $1,565-$1,590 before the trend direction becomes clearer.
