Financial markets have experienced a brief rest after economic turbulence caused by the “customs war” unleashed by US President Donald Trump.
As Cryptonotics reported on April 2, the president applied mutual tariffs to several countries, including China, Canada, the European Union (EU), and Latin America.
When the conflict between the US and several countries appears to have risen to an unthinkable level, the Trump administration announced a trade deal with Chinese and British authorities, which provided some relief to the financial markets.
In one of his latest reports, digital asset management company Galaxy Digital Specialists shows that Trump’s tariff ads have revived volatility in the financial markets, but left certainty. Coverage instruments faced with macroeconomic instability and increased geopolitical risks.
To support the statement, they noted that traditional markets showed mixed signs after the announcement of Trump’s tariffs. For example, Nasdaq, an index that groups major US technology companies, managed to stabilize after falling at the beginning of the month. in parallel, Bloomberg Dollar Indexmeasured the dollar’s strength against a basket of global currencies, and recorded a 4% decline, reflecting less confidence in US currency.
For that part, the traditional active shelter of gold in the context of economic uncertainty has reached a new historic maximum (ATH) of $3,500 per ounce. He then retreated slightly, but closed April with a accumulated gain of 5.75%.
“BTC, meanwhile, rose about 11% over the same period, highlighting the growing appeal of decentralized assets in an environment characterized by growing skepticism about US fiscal policy and central bank independence,” analysts said.
They also emphasized that the volatility of the currency created by Nakamoto At from May 2nd to May 11th was 43.86%. Here we need to make it clear that the indicator does not reflect how much it moved, not whether the price has risen or fall.
This is relevant The volatility of BTC was lower than that of the S&P 500 index (47.29%) and the Nasdaq 100 (51.26%).
For experts, this relatively calm mark “An important break with historical norms”while explaining:
“BTC, unlike large companies, represented by stock market indexes, differ from BTC and other digital assets, react strongly to risk-averse environments, moving more frequently and changing more frequently.
Galaxy Digital, Investment Company.
As Cryptootics reports, Galaxy analysts are not the only ones to warn of changes in these markets. Ki Young Ju, CEO and founder of analytics firm Cryptoquant, was recently recognized in X Publications, which was incorrect in one of the forecasts on Bitcoin prices.
“I said the bullish cycle was over, but I was wrong,” he admitted. As he explained, he did not consider the complexity and diversity that characterizes the current BTC market.
Currently, the market is further diversified due to ETF, BTC strategies and purchases by other governmental agencies and institutions. “Previously, revenue cycles were triggered when whales were charged at peak, lowering the response and prices of large sales chains,” he added.
These changes also strengthen the story BTC is considered “digital gold”an idea based on the properties it shares with precious metals: it is a decentralized currency and is resistant to banks and government censorship.
It should also be noted that it is an asset that cannot be devalued by monetary issuance or political decisions by the government or central bank. As Galaxy analysts highlighted, diversifying your investment wallet is a factor that makes it attractive, especially in times of geopolitical tensions and economic uncertainty.
Furthermore, BTC has a limited supply of 21 million units, and its broadcasts should not be omitted from the fact that it was cut every four years at an event called Halving. This is a factor that affects medium and long-term prices. For these reasons, their inherent shortage is that more and more investors (large and small) are interested in adding BTC to their portfolios to protect their heritage.
For these reasons, it is not unreasonable to see it in the short term. The story of BTC as a shelter asset grows even further Furthermore, digital currencies are not sensitive to geopolitical conflicts.
“In short, BTC yields in April could be more than a simple response to policyholders. There could be a growing perception that digital assets are not only a speculative tool, but also a fundamental component of a portfolio viewing the new macroeconomic environment,” the report concludes.
River Financial CEO Alex Leishman argued that BTC is no longer considered a purely speculative asset, highlighting it as an example of growing interest in the corporate sector. “Companies are accumulating at unprecedented rates. Today, we serve over 2,000 companies, and that number only increased by 154% last year. And they are real small and medium-sized businesses across the United States.
The significant increase in the adoption of this facility reflects the growing perception of BTC as a strategic financial tool, and in part helps explain the strength that assets have shown in the midst of the tensions that unleash the “customs war.”
Limited offers, significant increases in demand (e.g. institutional investment), It brings a bullish impulse to your price.
Simply put, the entry of new actors into the market is a price catalyst, especially at the point when BTC’s narrative as a shelter asset gains increasing strength.
In fact, OKG’s research analysis predicts that around $22.8 billion will flow into the market by 2025 (The signin English) mainly because of the growing interest of institutional actors. If this scenario is specified, the price of BTC could rise to the $200,000 area.
