Bitcoin Stable, Gold-Linked Tokens Outperform as XAU Reaches Record; Tokyo Inflation Edges Higher

Bitcoin Holds Ground as Gold Reaches Record Highs; Tokyo Inflation Boosts Yen, Signals Possible BOJ Rate Hikes

Bitcoin (BTC) price stabilizes just below its all-time high as gold (XAU) continues to surge, driven by global market concerns, while inflation in Tokyo stirs expectations of more tightening from the Bank of Japan (BOJ).

Bitcoin Stalls Just Below Record High Amid Tariff Concerns

Bitcoin held steady at around $104,400 early Friday, just 4.7% below its record high. The price action remained steady despite an interruption in its bullish momentum, as President Trump’s threat to impose 25% tariffs on Mexico and Canada weighed on the broader risk asset markets.

Crypto traders are split on the next move for BTC. Some anticipate a short-term pullback before a larger rally toward $250K, while others look to onchain derivatives markets for clues. According to Nick Forster of Derive.xyz, a decentralized options platform, BTC’s pullback is unlikely, with only a 9.7% chance of it falling below $75K before March, and a mere 4.4% chance of hitting $250K by September.

Market data on platforms like Deribit and CME indicate strong ongoing bullish sentiment, especially with institutional players still actively engaged in BTC options.

Gold Climbs to New Record Highs Amid Market Uncertainty

Gold prices rose to a new all-time high of $2,799 per ounce Friday, spurred by rising geopolitical concerns and a rush for the yellow metal from global central banks. The precious metal’s rally further reinforced its role as a safe haven during times of market turbulence.

Blokland Smart Multi-Asset Fund’s Jeroen Blokland pointed out that gold’s upward momentum, especially against the backdrop of weakening fiat currencies, may be fueling demand for alternative investments, including bitcoin.

Gold-backed tokens like Tether Gold (XAUT) also surged, reaching a high of $2,796, while PAXG neared record levels above $2,800.

Tokyo Inflation Accelerates, Strengthening BOJ Rate Hike Speculation

Tokyo’s consumer inflation hit a faster-than-expected 2.5% in January, signaling a potential shift in Japan’s economic landscape. This uptick in inflation has spurred expectations that the Bank of Japan will continue raising interest rates after its recent 0.5% hike, the highest level in over 16 years.

With the yen likely to strengthen in response to BOJ actions, traders are bracing for volatility in riskier assets. AUD/JPY, a key risk sentiment indicator, dropped out of a consolidation range, signaling further weakness for high-risk assets and pointing to a more cautious market outlook moving forward.