Bitcoin Holds Above $88K as Gold Hits Record High Amid Yen Surge and Fed Uncertainty

Bitcoin (BTC) remained resilient above $88,000 early Tuesday, supported by safe-haven demand as the Japanese yen surged past the key 140 level against the U.S. dollar. Investors flocked to traditional and digital hedges amid growing geopolitical and economic uncertainty, including concerns over U.S. trade tariffs and speculation around a potential change in Federal Reserve leadership.

The yen strengthened nearly 1%, reaching 139.93—its highest since September—while gold soared to a record $3,494 per ounce in Asian trading. BTC climbed over 1%, extending gains since Sunday, while altcoins like ETH, ADA, XRP, and SOL saw modest declines of up to 3%, indicating short-term profit-taking.

Kaspa (KAS) and Polygon (POL) led mid-cap gains with rallies of up to 9%, although no immediate catalysts were cited. Analysts note that Bitcoin’s performance during global market volatility is reinforcing its reputation as a “risk-off” asset. Gerry O’Shea of Hashdex emphasized Bitcoin’s historical strength following major macro events, comparing the current rally to those following COVID-19, the 2023 U.S. banking crisis, and geopolitical conflicts.

With gold reaching an all-time high, some traders are revisiting Bitcoin’s narrative as “digital gold,” especially as global liquidity expands and U.S. crypto regulations show signs of improvement.

Technically, Bitcoin recently bounced off its 50-day moving average and tested late March highs at $87,500. A strong close above $88,000 could signal a break in the current downtrend and pave the way for a move above the 200-day moving average, according to FxPro analyst Alex Kuptsikevich. This could mark a bullish turning point for BTC and potentially lead the broader market higher.