China Continues Its Gold Accumulation Spree, Triggering Unexpected Impact on Bitcoin (BTC) Price

This aggressive action against gold resulted in an unexpected impact on the price of Bitcoin (BTC), where BTC managed to hold steady at around $87,000 as of April 20, 2025.

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.

This aggressive action against gold triggered an unexpected impact on the price of Bitcoin (BTC), where BTC managed to hold steady at around $87,000 as of April 21, 2025.

Bitcoin Price Rises 2.11% in 24 Hours

On April 21, 2025, Bitcoin (BTC) was trading at $87,373, equivalent to approximately IDR 1,468,560,469, showing a 2.11% increase over the past 24 hours. Throughout the day, BTC dipped to a low of IDR 1,421,897,680 and reached a high of IDR 1,470,559,519.

According to CoinMarketCap, Bitcoin’s market capitalization now stands at around $1.73 trillion, with trading volume in the last 24 hours also increasing by 49% to $22.91 billion.

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Bitcoin Price Shows Resilience Amid China’s Gold Rush

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

While China’s gold buying spree has caught the attention of many, Bitcoin’s price has been boosted by this sentiment. Currently, Bitcoin is trading at around $87,000, despite being hit by various negative macroeconomic reports in recent days.

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

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

One possible reason for the rise in Bitcoin price is the growing perception of Bitcoin as a hedge asset, as China moves to reduce its reliance on the US dollar. Investors now see Bitcoin as an alternative for handling inflation risk.

Additionally, there are speculations that China may be moving towards establishing a Bitcoin Strategic Reserve. Nonetheless, reports regarding China’s sale of 15,000 BTC through overseas exchanges pour a little doubt on the 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.

Read also: Bitcoin Ready to Break $1 Million!? Analyst: “If the US Buys 1 Million BTC, the World will be Shaken!”

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

The tariff war between the United States and China is accelerating the hunt for hedge assets, where gold is again becoming 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 warned that Bitcoin is still in a bear market phase, dampening optimism that it will be able to replicate gold’s price surge.

Furthermore, the spot Bitcoin ETF experienced the largest outflows since its launch, although the Bitcoin price remained stable and showed resilience.

“A total of $4.8 billion has exited the ETF market since cumulative inflows reached their highest point,” said Darkfost crypto analysts. “However, BTC prices have so far held relatively steady, suggesting a limited reaction to this selling pressure.”

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