Bitcoin shows growing resilience to macroeconomic opposite winds compared to traditional financial markets, according to a report on April 14 of the Crypto Wintermute market manufacturer.
The report noted that Bitcoin (BTC) was relatively well during the slowdown in the current market, even if the S&P 500 and the NASDAQ fell to their lowest levels in one year and that bond yields have reached summits that had not been observed since 2007.
“Bitcoin’s decline has been relatively modest, revisiting the price levels of the American electoral period,” wrote Wintermute.
According to Wintermute, “this marks a notable change in his historical behavior in crisis situations.” In the past, Bitcoin losses were considerably higher than those of traditional financing indices. The change highlights the “increasing growing resilience of Bitcoin in the middle of macroeconomic turbulence”.
The founder of Obchakevich Research, Alex Obchakevich, told Cintelegraph that he expects to be a temporary trend:
“While the trade war is intensifying, Bitcoin can return to the list of risky assets. Because investors will most likely seek salvation in gold. ”
Obchakevich said the factors that caused Bitcoin’s stability to increase institutional interests through negotiated stock market (ETF) funds and the promotion of Bitcoin as a digital organ because of its decentralization and its independence.
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A change in dynamics of the Bitcoin market
During last week, the Bitcoin price increased by 7% to $ 83,700 – later reaching almost $ 86,000 at the time of publication. This growth occurred as the consumer price index (IPC) increased by 2.4% from one year to another, with a drop of one month over a month of 0.1% – the first monthly decline since May 2020. This indicates that inflation is cooling.
ICC from CPI from year to year. Source: American work statistics office
In addition, the producer prices index (PPI) increased by 2.7% in annual shift in March. The same metric amounted to 3.2% in February, also showing signs of disinflationary pressures. However, according to Wintermute, the trend could soon be reversed:
“Despite this progress towards the inflation objective of 2% of the Fed, recent climbing in global trade tensions has introduced new potential inflationist risks, which are not yet reflected in March.”
Monthly ppi for percentage of variation. Source: American work statistics office
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No more market disorders expected
Bitwise analyst Jeff Park has recently argued that the trade policies of US President Donald Trump will create global macroeconomic disorders and short -term financial crises that will finally lead to a greater adoption of Bitcoin. He said we should expect an increase in inflation:
“The tariff costs, most likely by higher inflation, will be shared by the United States and the business partners, but the relative impact will be much heavier on foreigners. These countries will then have to find a way to postpone their low growth problems. ”
Wintermute explained that the current trade war increases the risk of increased inflation and economic slowdown. The Kalshi Traders prediction market has recently put the chances that a recession is reaching the United States this year at 61%, and JPMorgan saw a probability of 60%.
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