Bitcoin (BTC) Price Rises 2.11% as China Continues to Add Gold to Its Reserves

In the latest development, China continues to add to its gold reserves, accumulating an additional five tons in the past month in a massive buying spree.

China is rapidly accumulating more gold in a huge buying spree, adding a further five tons last month alone, new reports claim.

The action against gold has had a knock-on effect on the price of Bitcoin (BTC).

Bitcoin Price Rises 2.11% in 24 Hours

On Friday, April 21, 2025, morning in Jakarta, Bitcoin (BTC) was trading at $87,373, or approximately IDR 1,468,560,469. This marks a 2.11% increase over the past 24 hours, with BTC hitting a low of IDR 1,421,897,680 and a high of IDR 1,470,559,519 during the day.

According to CoinMarketCap data, Bitcoin’s market capitalization now stands at around $1.73 trillion, while its trading volume over the last 24 hours also increased by 49% to reach $22.91 billion.

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Bitcoin Price Shows Resilience Amid China’s Gold Rush

According to a post by Kobeissi Letter on X, China is continuing its trend of accumulating gold. In the past month, the People’s Bank of China (PBoC) reportedly added five tons to its gold reserves.

BREAKING: China’s central bank increased its gold holdings by 5 tonnes in March, posting their 5th consecutive monthly purchase.This brings total China’s gold reserves to a record 2,292 tonnes.Chinese gold holdings now reflect 6.5% of its total official reserve assets. … pic.twitter.com/LuwiBvnirn

While China’s gold-buying activity has been widely reported, it seems to have had an impact on the price of Bitcoin.

Despite various negative macroeconomic reports in recent days, which should logically push the price of Bitcoin down, the world’s no. 1 crypto is still holding strong at the $87,000 level.

Four days ago, the price of Bitcoin and other crypto assets plummeted after US President Donald Trump announced the imposition of a 245% tariff on products from China.

However, after the PBoC announced its additional gold reserves, the price of Bitcoin reversed course and rallied again, leaving many investors a little confused.

One possible factor attributing to the rise in Bitcoin price is the increasing perception of Bitcoin as a hedge asset, as China is seen to be reducing its reliance on the US dollar. Investors are now turning to Bitcoin as a hedge against inflation risk.

Furthermore, there is speculation that China may be establishing a Bitcoin Strategic Reserve. Nonetheless, reports regarding China selling 15,000 BTC through overseas exchanges add a layer of doubt to this theory.

Gold Prices Skyrocket to Record Highs, Bitcoin Predicted to Follow Suit

Gold prices surged to new highs, fueling speculation that Bitcoin prices will follow suit.

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Currently, gold is being traded at around $3,326, having gained nearly $100 over the past week. This surge is being driven by increased institutional interest in gold, with China being the main driver of this movement.

As the tariff war between the United States and China intensifies, the hunt for hedge assets is accelerating, making gold once again the top choice. On the other hand, Bitcoin is also expected to attract institutional attention as an alternative hedge asset.

However, market analyst Peter Schiff expressed that Bitcoin is still in a bear market phase, dampening optimism that it will be able to replicate gold’s price surge.

In addition, the spot Bitcoin ETF experienced the largest outflows since its launch, although the Bitcoin price remained stable and showcased resilience.

“A total of $4.8 billion has exited the ETF market since cumulative inflows reached their highest point. But the price of BTC has so far reacted modestly to this selling pressure,” stated Darkfost crypto analysts.

📉We are currently witnessing the largest drawdown in the spot Bitcoin ETF market since their creation. A total of $4.8B has left the ETF market since cumulative inflows reached their highest point last year. Meanwhile, the price of BTC has recently remained stable, showing a limited reaction to this selling pressure.