21-4-2025 – The People’s Bank of China has intensified its bullion acquisition efforts, amassing an additional five tonnes of gold reserves within the past month. This strategic manoeuvre has sparked unexpected ripples across the cryptocurrency market, with Bitcoin maintaining robust performance above the $87,000 threshold.
The cryptocurrency market has demonstrated remarkable resilience amidst complex geopolitical tensions. Despite President Trump’s recent implementation of punitive 245% tariffs on Chinese imports and subsequent market volatility, Bitcoin has rebounded impressively to trade at $87,000, confounding market analysts and investors alike.
Precious metal markets have witnessed unprecedented activity, with gold reaching a historic peak of $3,326, representing a substantial week-on-week increase of nearly $100. This surge reflects mounting institutional interest, particularly driven by Chinese sovereign wealth initiatives.
Market observers have noted a curious correlation between China’s aggressive gold accumulation and Bitcoin’s market performance. The cryptocurrency’s strength as a potential hedge against inflation has gained prominence, particularly as China appears to distance itself from US dollar holdings. However, this narrative faces scrutiny following reports of Chinese entities offloading approximately 15,000 Bitcoin through offshore exchanges.
The relationship between digital and traditional safe-haven assets has become increasingly intricate. Whilst some analysts, including the Kobeissi Letter, highlight China’s persistent gold acquisitions, others, such as noted cryptocurrency sceptic Peter Schiff, maintain bearish predictions for Bitcoin’s trajectory.
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
— The Kobeissi Letter (@KobeissiLetter) April 20, 2025
Particularly noteworthy is the cryptocurrency market’s stability despite significant outflows from spot Bitcoin ETFs. Cryptocurrency analyst Darkfost emphasises the market’s impressive resilience, noting that despite $4.8 billion in ETF outflows from recent peak levels, Bitcoin prices have remained remarkably steady.
The escalating US-China trade tensions have catalysed increased interest in safe-haven assets, with both gold and Bitcoin emerging as beneficiaries of this shifting investment landscape. However, speculation regarding China’s potential establishment of a Strategic Bitcoin Reserve remains contentious, particularly given recent offshore selling activities.
