Bitcoin has been showing resilience amidst global economic concerns, particularly the ongoing U.S.-China trade tensions.
Bitcoin has been showing resilience amidst global economic concerns, particularly the ongoing U.S.-China trade tensions. In the two weeks leading up to April 22, Bitcoin's price rose by 12%, a strong recovery compared to the broader markets. While the U.S. imposed tariffs on China up to 125% and China reciprocated with similar increases, Bitcoin seemed unaffected by these trade issues. This has led many to observe that Bitcoin is beginning to behave more like gold, rather than the volatile Nasdaq, with growing interest in it as a safe-haven asset.
Alex Svanevik, CEO of the crypto intelligence platform Nansen, noted that Bitcoin has been decoupling from traditional stock markets. Unlike altcoins and major indexes like the S&P 500, Bitcoin has remained relatively stable despite the global trade tensions. Svanevik pointed out that while Bitcoin has been resilient, it is still vulnerable to broader economic concerns, especially fears of a recession.
Bitcoin's safe-haven status is bolstered by the U.S. government's plans to hold Bitcoin in the U.S. Strategic Bitcoin Reserve. This reserve will initially consist of Bitcoin seized from criminal cases, but President Trump's executive order has outlined strategies for the government to acquire more Bitcoin. These plans include using tariff revenues and re-evaluating the Treasury’s gold certificates to create a surplus to fund Bitcoin purchases without needing to sell gold. Svanevik believes that these regulatory developments will play a significant role in Bitcoin's growth as a global asset.
Despite Bitcoin's growth in the face of trade war pressures, the potential for a U.S. recession remains a concern for the broader economy. JPMorgan's latest report increased the likelihood of a U.S. recession in 2025 from 40% to 60%. The report pointed out that the remaining tariffs, particularly the 145% tariff on China, are still a significant threat to global growth. The Federal Reserve is expected to start easing monetary policy in September 2025, with further cuts expected through January 2026, which could help the economy but also affect demand for riskier assets like Bitcoin.
While Bitcoin continues to grow in prominence, its future may be shaped by regulatory changes, especially in the U.S., and its ability to maintain its appeal as a store of value amid global economic disruptions. As concerns about the economy continue to rise, Bitcoin could increasingly be seen as a hedge, much like gold, in turbulent times.
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