Bitcoin shows the growing stability in macroeconomic headwinds compared to the traditional financial market, according to an April 14 report from the crypto market manufacturer Wintermute.
The Report noticed that bitcoin (Btc) will be held well during the ongoing market collapse, even though the S&P 500 and Nasdaq have dropped to their lowest levels a year and bond yields have moved on to highs that have not been seen since 2007.
“The denial of Bitcoin is relatively modest, re -evaluating price levels from around the US election period,” Wintermute wrote.
According to Wintermute, “it marks a well -known move from its historical behavior in crisis situations.” Previously, bitcoin losses were greater than the traditional financial indexes. The shift features “brightly growing Bitcoin resilience amid macroeconomic disturbances.”
Founder of Obchakevich Research, Alex Obchakevich, told Cointelegraph that he hopes it is a temporary trend:
“As the trade war intensifies, Bitcoin may return to the list of risky property. Because investors are likely to seek gold safety.”
Obchakevich said the factors that caused Bitcoin’s stability were increasing the institutional interests through funds exchanged (ETF) and the growth of Bitcoin as digital gold due to its decentralization and independence.
Related: Bitcoin businessmen target $ 90K as bright tariff exceptions that allow US treasury yields
A change in the Dynamic Bitcoin market
Last week, the price of Bitcoin rose by 7% to $ 83,700 – eventually reached nearly $ 86,000 at the time of publication. This growth has occurred as Consumer Price Index (CPI) Rose by 2.4% years-on year, with a month-to-month decline of 0.1% —the first monthly decline from May 2020. These signs Inflation is cooling.
Year-year-old CPI percentage changes. Source: US Bureau of Labor Statistics
In addition, the Producer Price Index (PPI) rose 2.7% year-year in March. The same metric stood at 3.2% in February, which also showed signs of disinflationary pressure. However, according to Wintermute, the trend can be reversed:
“Despite this development towards Fed’s 2% target inflation, a recent increase in global trade tension has introduced new inflationary potential risks, which has not been seen in March data.”
Monthly percentage of PPI percentage. Source: US Bureau of Labor Statistics
Related: Trade wars can avoid governments to embrace Web3 – Truebit
More disturbance in the market expected
Bitwise analyst Jeff Park recently argued that US president’s trading policies Donald Trump will create global macroeconomic chaos and short-term financial crises that will eventually lead to Bitcoin’s greater adoption. He said we should expect to increase inflation:
“Tariff costs, likely by higher inflation, will be shared by both the US and trading partners, but the relative -child effect will be heavier among foreigners. These countries will have to find a way to eliminate their weak growth issues.”
Wintermute explained that the ongoing trade war increases the risk of increasing inflation and slowing the economy. Prediction moldihi bubbles recently placed the odds of a Returning to Pressing the US this year at 61%and JPMorgan visible A 60% possibility.
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