Crypto As per current reports, Donald Trump’s tariff shocks have taken stocks on a roller-coaster ride. However, amid this tumultuous stock market environment, Bitcoin has shown impressive resilience by outperforming all stocks.
The cryptocurrency industry has been navigating a turbulent macroeconomic landscape due to accelerated trade tension for quite a long time, triggering a ‘risk-off’ shift among the asset classes. With a slump of 25.9%, the sector has shown sensitivity to geopolitical and other policy-related disruptions.
The sudden announcement of new tariffs on Canada and the European Union by shifting risk assets like Equities, Bitcoin, and Crypto has put investors in a position of protectionism.
This article from The CEO Views finds out how Bitcoin and crypto have maintained resilience in the face of this market turmoil.
The Tumultuous Market Scenario and Bitcoin
As the flagship digital asset, Bitcoin and Crypto have experienced a decline since the COVID-19 economic crash, dropping about 15% after the tariff announcement in February. The recent market turbulence reflects a connection between digital assets and traditional financial markets.
During this phase, Bitcoin’s correlation with equities has strengthened, and its correlation with traditional hedges like gold has also increased. This shift changed institutional investors’ perspectives about the position of crypto in diverse portfolios.
Impact of the Market Turmoil
The recent trading landscape has shown significant volatility, particularly on Wall Street. Here, the United States stocks have reversed gains, a turbulence attributed to the ongoing tariff tension between the US and China. The tariff dispute is found to have impacted commodities and currency markets severely. Crude oil prices slumped by 20% as the recession is feared to have dampened the global demand for crude oil.
Compared to traditional markets, digital currencies like Bitcoin and crypto have shown more stability. Despite recent corrections, Bitcoin holders appear unaffected, viewing the digital asset as a long-term investment.
However, for Bitcoin and crypto to keep floating, they must surpass the 200-day moving average and headway resistance levels around 89,000 to 90,00. Until that happens, traders must be prepared for continuous setbacks.
Investors Slash Gains From Historic Rally on US Tariff Pause
Investors returned more than half of the historic rally on April 10, resulting in the pullback of cryptocurrencies. According to Coin Metrics, the price of Bitcoin and crypto was lowered by more than 3% to $79,614.34. Along with that, Coinbase fell 4%, and the bitcoin proxy strategy lost 8%, indicating a tumultuous environment in the cryptocurrency industry of the US.
This volatile market environment is making investors more and more worried about the broad market rally that propelled toward slowed economic growth despite the short reprieve on some of the tariffs paused by Trump on the 10th.
However, despite the volatility, investors have been impressed by Bitcoin’s resilience since the beginning of the tariff correction. A single-digit move in a major stock index is more worrisome for investors compared to the bitcoin and crypto moves, which are comparatively insignificant to them. Its ability to hang in the face of this market volatility makes it a reliable source of value within a down market.
An Insight into Bitcoin’s Resilience During the Market Turmoil
The recent correction of crypto in the cryptocurrency industry is mostly driven by broader macroeconomic forces, including tariff escalations, inflation concerns, and uncertainty over the responses of the central bank. This resulted in digital assets like bitcoin and crypto having characteristics of a hybrid asset class to respond to risk triggers.
As volatility is expected to remain elevated if the trade dispute accelerates between the US and EU, the response of the Federal Reserve will be critical. Easing the policy could boost market sentiment, and continued aggressive actions may reduce risk potential.
Despite this instability, the long-term fundamentals of the cryptocurrency industry remain steadfast. The ever-evolving regulatory environments and real-world applications of Bitcoin are collaboratively contributing to the resilience of the cryptocurrency industry.
Stabilized macroeconomic conditions or new news around digital assets hold the potential of again finding momentum as a long-term hedge. Until then, the market can remain volatile and highly responsive to global developments. Binance Research has advised investors to remain diversified and responsive to opportunities arising from market dislocations.
In this regard, Richard Teng, CEO of Binance, has pointed out, “The resurgence of trade protectionism is introducing significant volatility across global markets — and crypto is no exception. In the short term, this kind of macro uncertainty tends to trigger a risk-off response, with investors pulling back as they wait to see how things unfold around growth, policy, and trade.”
He further added, “Looking further ahead, though, this environment could also accelerate interest in crypto as a non-sovereign store of value. Many long-term holders continue to view Bitcoin and other digital assets as resilient during periods of economic stress and shifting policy dynamics.”
