Analysts Baffled by Bitcoin: “It Shows Extraordinary Resilience” – They Explained Why

Bitcoin (BTC) has emerged as a relative safe haven amid the recent stock market turbulence sparked by renewed tariff tensions. President Donald Trump’s aggressive trade policy moves have sent major U.S. stock indexes into disarray, but the world’s oldest cryptocurrency has held surprisingly steady. Historically, Bitcoin has been known for its extreme price swings compared to traditional financial assets. However, the recent divergence suggests that the digital asset is behaving differently this time around. While stocks have reacted strongly to tariff uncertainty, Bitcoin appears unaffected because the cryptocurrency is largely insulated from direct economic shocks related to trade. “Bitcoin has strengthened against equity indices since the tariff announcements on April 2, a rather unusual observation given the massive risk-off that has occurred over the past six days,” said Vetle Lunde, head of research at K33. Analysts attribute this resilience to a combination of factors including moderate leverage in crypto markets and increasing regulatory support in the U.S. Unlike previous cycles, Bitcoin futures saw only modest premiums, with options markets reflecting a modest increase in downside protection demand rather than panic selling. “The most remarkable achievement of this week is that BTC did not crash harder,” Lunde added. Related News: JUST IN: White House’s New Tariff Announcement Brings a Sudden Drop in Bitcoin According to Nikolay Karpenko, senior client relationship manager at crypto market maker B2C2, “Implied volatility rose as short-term repricing effects took hold, and significant shifts in risk reversals signaled increased demand for downside protection.” However, he noted that longer-term volatility patterns remained stable, suggesting that institutional investors were primarily focused on hedging tail risks rather than exiting the market. Ravi Doshi, co-head of markets at crypto brokerage FalconX, said Bitcoin’s performance has also benefited from reduced leverage heading into recent market events. “BTC has performed well relative to the stock market, in part because BTC was less leveraged heading into ‘Independence Day’ after experiencing multiple sell-offs last month,” he said. “Last week, the basis was below Fed funds.” The basis, which measures the difference between futures and spot prices, remains low at a premium of just 6.3%, while open interest is at an 11-month low, according to K33 data. The subdued basis reflects cautious positioning among institutional investors, many of whom are trading basis to take advantage of price gaps between CME-listed bitcoin futures and exchange-traded products. “Bitcoin bulls should be energized by this performance,” Matt Hougan, chief investment officer at Bitwise Asset Management Inc., said on Bloomberg TV. Hougan remains optimistic and sees Bitcoin poised to return to all-time highs once market volatility calms. *This is not investment advice. Continue Reading: Analysts Baffled by Bitcoin: “It Shows Extraordinary Resilience” – They Explained Why

Source: BitcoinSistemi