Bitcoin shows an increasing flexibility on the opposite winds of the macroeconomic compared to traditional financial markets, according to a report issued on April 14 from Crypto Market Maker.
the a report He pointed out that Bitcoin (BTC) has rested relatively well during the continuous recession in the market, even with the decrease in the S&P 500 and NASDAQ to its lowest levels per year, and bond returns have risen to their highest levels that have not been seen since 2007.
“The Bitcoin decrease was relatively modest, as it reconsidered price levels from all over the American election period,” Wintermute wrote.
According to Wintermute, “This represents a remarkable shift from his historical behavior in crisis situations.” In the past, Bitcoin losses were much greater than the losses of traditional financing indexes. The shift highlights “the increasingly increasing flexibility of Bitcoin amid the total economic turmoil.”
I told Obchakevich Research, Alex Obchakevich, CointeleGraph that this is expected to be a temporary direction:
“With the intensification of the trade war, Bitcoin may return to the list of risky assets. Because investors will likely search for salvation with gold.”
Obchakevich said that the factors that caused the stability of bitcoin were an increasing institutional interest through the boxes circulating on the stock exchange (ETFS) and the promotion of bitcoin as digital gold due to decentralization and independence.
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Change in the dynamics of the Bitcoin market
Over the past week, the Bitcoin price increased by 7 % to 83,700 dollars – as it later reached nearly $ 86,000 at the time of publication. This growth happened as a consumer price index (CPI) rose By 2.4 % year on an annual basis, with a month’s decrease by 0.1 %-which is the first monthly decrease since May 2020. These signals cool inflation.
Change the percentage of consumer price index on an annual basis. source: American work statistics office
Moreover, the PPI price index increased by 2.7 % on an annual basis in March. The same scale reached 3.2 % in February, which also indicates signs of the pressure pressures. However, according to Wintermute, the direction may be reflected soon:
“Despite this progress towards the target of inflation by 2 % of the Federal Reserve, the recent escalation in global trade tensions has provided new inflationary risks, which have not yet been reflected in March data.”
The percentage of the monthly product price index. source: American work statistics office
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More turmoil in the expected market
BitWise Jeff Park recently argued that US President Donald Trump’s policies will create macroeconomic disturbances around the world and short -term financial crises that will eventually lead to Bitcoin’s adoption. He said that we must expect an increase in inflation:
“Both the United States and commercial partners will likely participate through high inflation, to a large extent, the relative effect will be much heavier on foreigners. These countries will then have to find a way to ward off weak growth issues.”
Wintermute explained that the ongoing trade war increases the risk of increasing inflation and economic slowdown. The KALSHI prediction market recently put the recession that has reached the United States this year by 61 %, and JPMorgan Sees 60 % probability.
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