Bitcoin Touches $109,845, Surpassing Its January High Amid Mounting Global Fiscal Concerns

Bitcoin touched $109,845 on Binance Wednesday morning, surpassing its January high of $109,588 and being on track to hit $110,000 amid mounting concerns

Bitcoin price touched $109,845 on Binance Wednesday morning, surpassing its January high of $109,588 and heading towards the $110,000 mark. The rally in the world’s biggest cryptocurrency came amid mounting concerns over global fiscal stability, which also drove up gold prices.

At press time, gold futures due December rose 0.6% to $3,312 an ounce, after briefly touching their highest level since May 12, according to TradingView.

The rally in these assets came after Japan’s long-term bond yields surged to record highs—3.14% on the 30-year and 3.6% on the 40-year JGBs, following weak auctions that reflected growing investor unease over the country’s massive debt load.

“Japan’s ballooning debt situation has long been a simmering concern, but it is now reaching a boiling point,” QCP Capital said in a statement.

In the US, fiscal uncertainty is simmering as the national debt approaches $36 trillion and major policy deadlines loom in 2025. Without tax and spending reforms, the debt could exceed 120% of GDP by the next decade.

Rising interest rates have already increased borrowing costs, while political gridlock and expiring tax provisions threaten a fiscal cliff.

Without a credible plan to control spending, the US may face higher borrowing costs, slower growth, and greater economic instability, analysts warned.

This climate of uncertainty is now boosting demand for safe-haven assets like gold, and Bitcoin appears to be following suit.

For months, market analysts have been keeping an eye on the relationship between Bitcoin and gold, noting how the flagship crypto is increasingly following gold’s lead rather than tracking traditional risk assets like US equities.

Market analyst MacroScope said in a recent post that the anticipated “gold-to-Bitcoin handoff” is now playing out, with Bitcoin decisively outperforming gold since March.

This pattern—where gold rallies first and Bitcoin follows—has held true at several key market inflection points in past cycles, often marking the beginning of a phase where Bitcoin outperforms both gold and risk assets, he added.

March. Since then:

BTC +22%Gold +10%

That’s the gold “handoff” to BTC we were watching for a few months ago. The longer-term scenario below looks increasingly likely. https://t.co/BSukszNxMp— MacroScope (@MacroScope17) May 20, 2025

Other factors, including increasing corporate accumulation and steady institutional demand add momentum to Bitcoin’s price actions.