Bitcoin (BTC) has shown remarkable resilience amidst recent global economic turmoil, outperforming most major altcoins and equities despite a 19.1% pullback since January highs. Long-term holders continue to accumulate BTC, indicating its potential to serve as a safe-haven asset amidst economic uncertainty. As the US triggers a global tariff spiral, Bitcoin has shown signs of decoupling from traditional risk assets during moments of peak stress.
While the overall crypto market has seen a significant decline in value, Bitcoin has been less volatile compared to high-risk sectors such as memecoins and AI-linked tokens. Ethereum (ETH) has experienced a more significant drop, reflecting its sensitivity to risk-off moves. Bitcoin’s correlation with equities has increased, but its correlation with gold has decreased, suggesting a potential shift in its position as a safe-haven asset.
The current macroeconomic environment is complex, with rising inflation expectations and a sharp increase in average US tariff rates creating stagflationary threats. The Federal Reserve is expected to cut interest rates multiple times this year to address these challenges. Bitcoin’s performance in this environment may depend on monetary policy decisions and narrative momentum, with the potential to attract fresh flows as a hedge against inflation.
Despite being tied to macroeconomic headlines, Bitcoin’s relative strength during recent market turmoil hints at its potential role in a fractured global economy. It remains to be seen whether Bitcoin can maintain its performance amid changing central bank policies and economic uncertainties. The cryptocurrency market as a whole is valued at $2.53 trillion with a 24-hour trading volume of $212.05 billion, with Bitcoin dominance at 62.70%. Bitcoin continues to hold the top position by market cap, with a market capitalization of $1.59 trillion.
