As Trump tariffs brought market instability, Bitcoin showed an exceptional rise, climbing nearly 7%, briefly touching $86,000. This rise surfaced against the backdrop of US stock indexes hitting year-long lows and bonds surging to a level not seen since 2007. Crypto firms are attributing this performance of Bitcoin to its institutional presence and the changing nature of investors.
About this Bitcoin surge, the Crypto trading firm Wintermute noted
“This marks a notable shift from its historical behavior in crisis situations,”
Inflation and Market Volatility Not Reflected in March Data
The data retrieved from the US Bureau of Labor Statistics showed that the Consumer Price Index increased 2.4% year-over-year in March but decreased by 0.1% month-over-month, indicating the first monthly decline since May 2020. The Product Price Index also slowed compared to the 3.2% increase in February. Wintermute pointed out, although the global market is volatile and there are inflationary risks, they as not been reflected in the March data.
Bitcoin Reacts to Macroeconomic Trends
Analyst Bitwise opined that corporate interest in Bitcoin continues to rise. The Q1 of 2025 highlights that 12 new public firms added Bitcoin to their balance sheets. This pushed the total corporate holdings to 688,000 BTC, a 16% increase that is now worth an estimated $57 billion. Bitcoin analysts find that this increase indicates Bitcoin’s reaction to the macroeconomic trends. In light of this, Jeff Park, an analyst at Bitwise, said
“The tariff costs, most likely through higher inflation, will be shared by both the U.S. and trading partners, but the relative impact will be much heavier on foreigners,”
The Current Stability May Not Last
The founder of Obchakevich Research, Alex Obchakevich, predicted that this trend of Bitcoin may not last. He opined that the current stability of Bitcoin is due to the perception of Bitcoin as ‘digital gold’. He said
“As the trade war intensifies, Bitcoin may return to the list of risky assets. Because investors will most likely look for salvation in gold,”
