Solana, XRP, and Cardano see notable increases as Bitcoin regains its digital gold narrative amid global inflation concerns and a weak US dollar.
The current Bitcoin BTC $71 202 24h volatility: 1.4% Market cap: $1.42 T Vol. 24h: $56.02 B price outlook has renewed conversations around its role as a store of value. It has revived the comparisons of the largest cryptocurrency as digital gold. Current market data shows that this new sentiment has a ripple effect across the broader digital asset market. Top coins like Solana SOL $88.85 24h volatility: 2.7% Market cap: $50.73 B Vol. 24h: $5.40 B , XRP XRP $1.40 24h volatility: 1.8% Market cap: $85.77 B Vol. 24h: $3.41 B , and Cardano ADA $0.27 24h volatility: 1.7% Market cap: $9.85 B Vol. 24h: $630.08 M have recorded gains in the past week.
Bitcoin Breaks $87K as Investors Shift Focus From Dollar
According to CoinDesk’s report, Bitcoin rose above $87,000 during Asian trading hours, up by 3.35% in 24 hours. This increase reversed recent losses and pushed the digital asset back into the headlines. The rally is linked to a growing belief among investors that Bitcoin is once again acting like digital gold.
It is worth noting that this view, popular in Bitcoin’s early days, faded over time as the coin’s volatility increased. However, current market conditions are bringing back the narrative.
According to reports, rising gold prices, which surpassed $3,380 per ounce on April 21, increased investor anxiety over inflation and weakened global currencies. Bitcoin is now mirroring this movement of gold, reflecting a shift in market perception. Analysts also point to trade-related tariffs and pressure on the US dollar as key drivers behind this change.
According to the update, Nick Ruck of LVRG Research said the correlation between Bitcoin and US equities is weakening. He explained that instead of following stock markets, Bitcoin is now moving in line with gold. This shows an important change, as gold has always been a traditional safe asset during economic uncertainties.
It was also detailed that the US dollar index (DXY) dropped to a three-year low, and political pressure on the US Federal Reserve contributes to the dollar’s instability.
BREAKING 🚨: U.S. Dollar
U.S. Dollar Index $DXY plunging to its lowest level since March 2022 📉 pic.twitter.com/NPqqcthqTz
— Barchart (@Barchart) April 21, 2025
President Donald Trump’s push to remove Jerome Powell as Fed Chair and force interest rate cuts has made investors nervous. As a result, they are moving into assets like gold, European bonds, and Bitcoin.
Altcoins React as Market Sentiment Improves
It is worth noting that while Bitcoin led the headlines, other major cryptocurrencies also saw gains. CoinMarketCap data shows that Solana, the sixth-largest digital asset, climbed past $140, up 0.4%. XRP, the coin linked to Ripple Labs, reached $2.12. Cardano also broke through the $0.645 mark.
Based on the price outlook, Solana has gained over 5% in the past week, currently trading at $140.44 following a modest 0.69% increase in the last 24 hours. In an earlier update, Coinspeaker reported a possible launch of spot Solana ETFs in Canada. Many believe this development is contributing to the ongoing rally.
XRP saw a stronger move, rising 2.91% to trade at $2.12. The coin has been gaining attention lately, following news of ProShares entering the race for an XRP Futures ETF and Ripple’s acquisition of Hidden Road. These developments have driven notable market activity around XRP.
Cardano also posted gains, with ADA rising 3.35% in 24 hours to $0.6457. Technical indicators for these altcoins suggest growing strength, hinting at potential sustained momentum if current market conditions continue.
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