Bitcoin Outperforms Traditional Assets in Market Slump
Bitcoin is proving more resilient to macroeconomic headwinds than traditional financial markets, according to an April 14 report by crypto market maker Wintermute. As Wall Street indices hit yearly lows and bond yields soar to levels unseen since 2007, Bitcoin’s price drop has remained relatively modest.
Wintermute notes this marks a significant deviation from past behavior. Historically, Bitcoin suffered deeper losses than traditional indexes during crises. This recent strength suggests Bitcoin may be evolving into a more stable asset in uncertain times.
Bitcoin as “Digital Gold” Gains Momentum
Obchakevich Research founder Alex Obchakevich attributes the stability to growing institutional demand, particularly via ETFs, and the rising narrative of Bitcoin as “digital gold.”
However, he warns that this may be temporary:
“As the trade war intensifies, Bitcoin may return to the list of risky assets. Because investors will most likely look for salvation in gold.”
Still, institutional adoption and decentralization continue to support Bitcoin’s image as a hedge in turbulent markets.
Inflation Slows, Bitcoin Climbs
Over the past week, Bitcoin gained 7%, reaching nearly $86,000. This coincided with a 2.4% year-over-year rise in the Consumer Price Index (CPI), alongside the first monthly CPI decrease since May 2020 — a signal of cooling inflation.
The Producer Price Index (PPI) echoed this trend, with March’s 2.7% rise down from February’s 3.2%, indicating further disinflation. Yet Wintermute warns this could reverse if global trade tensions escalate.
Trade War Sparks Economic Concerns
Jeff Park, an analyst at Bitwise, said Trump’s aggressive trade stance could spark a global macroeconomic crisis, pushing more investors toward Bitcoin. He noted:
“The tariff costs will likely drive inflation and economic slowdown, especially outside the US.”
Wintermute added that heightened trade conflict raises inflationary risk, with traders and banks forecasting a 60–61% chance of a US recession in 2025.
