Bitcoin shows growing strength during market downturn — Wintermute

Key Points

  • Bitcoin is showing increasing resilience to macroeconomic turbulence, outperforming traditional assets during market downturns.
  • The cryptocurrency's decline was modest compared to significant drops in the S&P 500 and Nasdaq, marking a shift in its historical behavior.
  • Growing institutional interest and Bitcoin's promotion as digital gold contribute to its stability.
  • Despite current resilience, experts predict Bitcoin might revert to being seen as a risky asset due to intensifying trade wars.

Summary

Bitcoin has demonstrated a notable resilience to macroeconomic headwinds, according to a recent report by crypto market maker Wintermute. Despite a general market downturn, Bitcoin's price decline was relatively modest, revisiting levels seen around the US election period, while traditional markets like the S&P 500 and Nasdaq hit their lowest points in a year. This resilience marks a significant departure from Bitcoin's past behavior during crises, where its losses were typically more severe than those of traditional finance indexes. Factors contributing to this stability include increased institutional interest through ETFs and Bitcoin's positioning as digital gold. However, experts like Alex Obchakevich from Obchakevich Research suggest that this trend might be temporary, with Bitcoin potentially returning to the category of risky assets as trade wars escalate. Meanwhile, economic indicators like the CPI and PPI show signs of cooling inflation, though new inflationary risks from global trade tensions could soon impact the market.

cointelegraph
April 15, 2025
Crypto
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