Japan’s escalating debt crisis triggered a surge in Bitcoin and gold prices, with Bitcoin bulls pushing the cryptocurrency to a keen target of $108,000. Meanwhile, gold prices crossed the $3,300 threshold. This synchronized rise is believed to be a reaction to the financial disturbance in Japan, which has reached a critical stage.
Bitcoin managed to maintain its pressure on the $108,000 target during the Wall Street opening on May 21. Data from Cointelegraph Markets Pro and TradingView indicate that BTC is moving closer to its daily high range as the US trading session begins. After its record daily close, Bitcoin is getting ready to face off with its all-time high just above $109,000.
Japan’s national debt issues have favored both Bitcoin and gold, with the latter reaching $3,320 per ounce, its highest since May 12. “Japan’s growing debt problem has been an underlying concern for a while, but it is now approaching a critical stage,” commented trading firm QCP Capital.
According to QCP, the recent Bitcoin gains seem to be driven by corporate accumulation, and a breakthrough of all-time highs could reignite retail interest. However, they also warned that “a slowdown in their buying could trigger profit-taking from other market participants and potentially reverse the prevailing uptrend.”
Concerns about the strength of the BTC price trend also arose from the BTCUSD chart. Prominent trader Roman cautioned that Bitcoin’s relative strength index (RSI) now shows three bearish divergences simultaneously on daily timeframes.
Despite the bearish signals, numerous bullish BTC price targets are still in place, with $116,000 being a popular target once all-time highs are breached. Some have even predicted a price of $220,000 or more by 2025. Trader and analyst Aksel Kibar maintains the bull trend “remains intact” this week, with his chart indicating a $137,000 target.
QCP concluded, “Despite relentless macro headwinds including surging bond yields, tariff escalations, and mounting stagflation risks in the US for Q3 and Q4, BTC has demonstrated remarkable resilience over the past month. A breakout to new highs could ignite a fresh wave of FOMO, dragging in sidelined retail capital and pushing prices even higher.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
