Bitcoin Breaks Through $88,000: The Safe-Haven Frenzy Between Gold and Bitcoin
On April 22, 2025, a global financial market frenzy of safe-haven assets swept through. The price of gold surged to a record high of $3354 per ounce, while Bitcoin skyrocketed to over $88,000, reaching as high as $88,872.
Meanwhile, the US stock market evaporated $1.5 trillion, the US dollar index fell to a low of 98, and investors are pouring funds into gold and Bitcoin, the two major safe-haven assets. Behind this capital frenzy, what kind of story is hidden? Can gold and Bitcoin really become ‘safe havens’ in troubled times? Let us explore.
Storm is coming: turbulent times in the global market
In recent months, the global economy seems to have been caught in a storm. The escalating trade war between China and the United States has seen China’s import tariffs on the United States soar to 125%, while Trump has suspended tariff plans on other countries in an attempt to stabilize market sentiment. However, a credit crisis for the US dollar has quietly emerged - Trump openly questioned the position of Federal Reserve Chairman Powell, causing the US dollar index to fall to its lowest level since September 2022. Meanwhile, US stocks plummeted, with the S&P 500 index dropping 2% in a single day, shaking investor confidence.
In the midst of this chaos, gold and Bitcoin are like two beacons, attracting the attention of global capital. Gold ETFs attracted a net inflow of $21.1 billion in the first quarter of 2025, with Chinese and Hong Kong investors contributing nearly a quarter. The Bitcoin market is also hot, with whales hoarding 213,000 BTC, and the asset size of the U.S. Bitcoin ETF has swelled to $92.5 billion. On the X platform, investor sentiment has shifted from ‘fear’ to ‘greed,’ with some even boldly predicting, ‘Bitcoin will soon break through $100,000!’
Gold: the thousand-year king of safe haven
The charm of gold has never faded with the changing times. The new high of $3354 per ounce is supported by the weakening US dollar, rising US bond yields (with the 10-year Treasury yield reaching 4.585%), and geopolitical clouds. The conflict between Russia and Ukraine has brought back the safe-haven appeal of gold, with central banks also joining the party - gold accounts for 22.9% of Russia’s foreign exchange reserves.
“Gold is the ultimate safe haven asset,” said analysts at Bank of America. Its stability is unmatched: it does not depend on any economy, is not eroded by inflation, and has a deep trading depth. Whether it is institutional investors in the Netherlands or retail investors in China, they all see gold as a “lifesaver” in troubled times. However, gold also has its drawbacks - with a relatively limited return rate, a 20% increase in 2024 is far from Bitcoin’s 40%. For investors seeking high returns, gold’s stability seems somewhat “conservative”.
Bitcoin: The Rise of Digital Gold
If gold is the king of a thousand years, Bitcoin is the rebel of the new era. Behind the breakthrough of $88,000 is the Trump administration’s pro-encryption policy, the institutions’ fervent pursuit, and the increasingly popular narrative of Bitcoin as “digital gold”.
MicroStrategy increased its BTC holdings by 6911 coins, with a total holding value exceeding $47 billion; BlackRock’s Bitcoin ETF became the most successful debut product in history, attracting $36 billion. The halving event in April 2024 will further tighten supply, with the limit of 21 million coins making Bitcoin a scarce “digital treasure”.
The charm of Bitcoin lies in its decentralization and high liquidity. The 24/7 trading mechanism makes it a sharp tool for quickly responding to market changes, especially in the current environment of widening cracks in the US dollar credit and the rising global trend of de-dollarization. On the X platform, someone excitedly wrote, “Bitcoin has broken free from the shackles of US stocks, it is no longer just a risky asset!” Studies show that Bitcoin has demonstrated a weak hedging property in the fluctuations of the Chinese currency market, attracting more and more funds hedging against inflation.
But Bitcoin is not without its weaknesses. Its price fluctuations are like a roller coaster, dropping 10% at the beginning of 2025, while gold prices rose 10% during the same period. Regulatory uncertainty is also ever-present—Slovenia announced a 25% tax on crypto gains starting in 2026, making investors cautious. JPMorgan even questions Bitcoin’s safe haven status, believing that its correlation with the stock market has diminished the ‘digital gold’ allure.
Technical: The next step for gold and Bitcoin
The rise of gold and Bitcoin, can it continue? Technical analysis has revealed a glimpse for us.
Gold is currently holding steady at $3354, with no sign of slowing down after breaking through the $3200 resistance. The RSI (Relative Strength Index) is at 65, not yet in overbought territory, and the 50-day moving average ($3100) is providing strong support. If the US dollar continues to weaken, the price of gold may surge towards $3500 before June, but the selling pressure at high levels cannot be ignored.
Bitcoin is hovering around $88,500, forming a “falling wedge” pattern after breaking through the $87,400 resistance, pointing to the key level of $90,000. The RSI is 53.94, indicating sufficient upside potential, with a 24-hour trading volume surge of 54.3% (reaching $36 billion) supporting the sustainability of the breakthrough. If it can hold above $90,000, it may challenge $100,000 to $110,000 before May; however, if it falls below $85,000, the $78,000 support level will be tested.
The showdown of safe-haven assets: Gold VS Bitcoin
Gold and Bitcoin, who is the better choice for hedging? The stability of gold is unparalleled, suitable for conservative investors; its market depth and regulatory framework attract institutions. Bitcoin, on the other hand, attracts young people and digital asset enthusiasts with high returns and high liquidity, but its volatility and regulatory risks make it more like a ‘game for the brave’.
“Gold is the cornerstone of safe-haven assets, while Bitcoin is the future potential stock,” as stated by analysts at Fundstrat. Gold has regained its luster in the Russia-Ukraine conflict, while Bitcoin has emerged in specific crises (such as Chinese currency fluctuations). In the first quarter of 2025, gold ETF inflows far exceeded Bitcoin, showing the priority position of traditional safe-haven assets; however, Bitcoin’s institutional recognition is catching up, with endorsements from MicroStrategy and BlackRock making it no longer a marginal asset.
For investors, the choice depends on risk preference. Those pursuing stability can allocate to gold, while those seeking high returns can bet on Bitcoin. Morpher platform suggests, ‘Combining the two may be the best strategy to balance risk and return.’
Hidden risks and future hopes
The rush for safety is not without shadows. The global economic recession looms, if the trade war leads to shrinking demand, gold and Bitcoin may face downward pressure. If the US dollar rebounds due to a shift in Federal Reserve policy, it may also suppress the prices of both. In addition, the regulatory risks of Bitcoin are particularly prominent—tightening regulations in the encrypted market globally may trigger market panic.
But the opportunity is equally tempting. The central bank demand for gold and ETF inflows provide long-term support for prices, with analysts predicting that the price of gold may break through $3500 by the end of 2025. Bitcoin, on the other hand, benefits from institutional enthusiasm and favorable policies, with CNBC forecasting that it may reach $200,000 by 2025, and even touch the million-dollar mark by 2030. Whether it’s the stability of gold or the wildness of Bitcoin, these two major assets are reshaping the definition of safe havens.
The Choice of Safe Haven
Gold price hits a historical high, Bitcoin breaks through $88,000, this is not just a price carnival, but also a global investor’s vote for the future. With the uncertainty of the US dollar and escalating trade wars, gold and Bitcoin are becoming the “safe haven stars” in turbulent times. For investors, now is the time to re-uate asset allocation: whether to choose the millennium shelter of gold or embrace the digital future of Bitcoin? Perhaps, as a user on X platform said: “Gold stabilizes your wealth, Bitcoin ignites your dreams.”
No matter which path you choose, staying vigilant and diversifying risks is key. Only by closely monitoring the trend of the US dollar, the dynamics of trade wars, and the flow of institutional funds, can you ride the waves in this frenzy of seeking refuge. The story of gold and Bitcoin is far from over - what will be their next peak?
