Bitcoin (BTC) 
$63,563 prices halted their ascent this Friday morning, hovering slightly below record levels. Currently trading around $104,400, the leading cryptocurrency by market capitalization is merely 4.7% away from establishing a new all-time high, according to CoinDesk data.
Gold Prices Reach New Heights
Gold hit an all-time high of $2,799 per ounce on Friday morning, marking a 6.5% gain since the start of the month. Participants in the London bullion market are actively engaging in transactions to borrow the yellow metal from central banks. This activity has been triggered by concerns over potential import tariffs, as reported by Reuters.
Inflation Rises in Tokyo
In January, consumer inflation in Tokyo showed a slight increase. Official data indicates that the core inflation rate has risen to 2.5%. This uptick is seen as a sign of the Bank of Japan raising its policy interest rate to 0.5%, the highest level in 16 years.
Nick Forster, founder of Derive.xyz, stated that there is a 9.7% chance BTC could drop below $75,000 before March, while there is a 4.4% probability of it soaring above $250,000 by mid-September. Platforms like Deribit and CME continue to maintain an optimistic outlook.
“Some crypto leaders believe BTC will fall, then reach $250,000 by year-end. However, Derive.xyz views this skeptically.”
Gold-backed tokens are also gaining strength from rising XAU prices. Tokens such as Tether Gold (XAUT) and PAXG are appreciating in value, reflecting gold’s price surge. Additionally, the rise in inflation in Tokyo could strengthen the yen and lead to a depreciation of risk assets.
“Gold reaching record levels against major fiat currencies indicates a decline in the value of those currencies,” said Jeroen Blokland, founder of Blokland Smart Multi-Asset Fund.
Moreover, BTC reserves in the U.S. are expected to increase at the state level, creating positive momentum in the market. However, rising yen values may lead to losses in risk indicator pairs like AUD/JPY.
The fluctuations in Bitcoin and gold markets present various opportunities and risks for market participants. The correlation between cryptocurrencies and traditional risk assets complicates market dynamics further.
