China’s recent acquisition of five tonnes of gold and rising Bitcoin prices reflect strategic movements in the financial markets amidst US-China trade tensions. The People’s Bank of China’s gold holdings reached 2,292 tonnes, highlighting a focus on safe-haven assets. Meanwhile, an increase in Bitcoin whale wallets suggests growing institutional interest in the cryptocurrency, reinforcing its perception as an inflation hedge. Despite mixed signals with significant ETF outflows, Bitcoin’s price remains stable, indicating robust investor sentiment as the economic landscape evolves.
China has recently increased its gold reserves by five tonnes within a month, signalling a trend of aggressive gold purchases. This move stems from ongoing uncertainties in global markets due to escalating trade tensions with the United States. Concurrently, Bitcoin has demonstrated remarkable resilience, maintaining its price above $87,000 despite the fluctuations and negative macroeconomic news surrounding other asset classes.
The People’s Bank of China (PBOC) reported its fifth consecutive month of gold purchases, bringing its total reserves to a historic 2,292 tonnes, which now represents 6.5% of the country’s official reserve assets. As the tensions between the US and China deepen, these actions highlight a strategic shift in asset accumulation towards gold as a safe-haven investment.
New statistics from Glassnode reveal an increase in Bitcoin “whale” wallets—addresses holding over 1,000 BTC—suggesting a rising interest from large investors. The number of these significant Bitcoin addresses has risen from 2,030 in February to 2,100 by mid-April, indicating that substantial financial players are actively engaging in Bitcoin investment, which is increasingly viewed as a hedge against inflation akin to gold.
Gold prices have reached $3,401 per ounce, attributed primarily to the influx of purchases from institutions, notably Chinese entities. This recent surge in gold values can be linked to investor behaviour amidst ongoing US-China tariff conflicts, propelling both gold and Bitcoin as alternatives to traditional fiat currencies in uncertain times.
Despite Bitcoin’s stable pricing during tumultuous periods, nearly $5 billion has been withdrawn from Bitcoin ETFs, raising concerns. Furthermore, there are conflicting reports regarding China’s stance on Bitcoin, with some suggesting the country is building a Strategic Bitcoin Reserve, while others indicate a selling trend of 15,000 BTC through offshore exchanges. This volatility requires close monitoring as investors are now looking at both gold and Bitcoin as viable safe havens amidst global economic instability.
