Bitcoin (BTC) is growing more susceptible to global macroeconomic impacts, taking the lead in the US equity markets in response to recent economic and policy changes initiated by President Donald Trump. Despite this, the cryptocurrency has shown notable resilience, demonstrating structural robustness over extended periods.
Bitcoin has outshone U.S. equities like the S&P 500, maintaining its price above pre-election levels even during broad-scale risk-off incidences, such as the latest tariff announcements.
Bitfinix reports that Bitcoin is increasingly behaving like a traditional financial asset, trading based on global liquidity trends, particularly in light of US economic developments and monetary policies. In recent times, inflation metrics and rate policies from the Federal Reserve have had a significant impact on Bitcoin’s price movements.
Over the past four days, announcements from President Trump have injected increased uncertainty into global markets, resulting in a dip in Bitcoin’s price. The cryptocurrency fell below $100,000, hitting an intraday low of $91,657 on Monday.
In response to the tariff news, Bitcoin also experienced a decline. However, the sell-off was more severe due to Bitcoin’s nature as a tail-risk asset, which tends to see steeper declines when market sentiment weakens, even if the correlation with SPXBTC remains strong, according to Bitfinex.
Although Bitcoin has shown a downward trend since President Trump’s inauguration, its long-term outlook remains positive. Bitfinex analysts believe the current 15-20% trading ranges will resolve in either an upward or downward direction within 80-90 days, indicating a decisive price move in the coming weeks. This will continue to be influenced by macroeconomic factors.
As the financial markets digest the effects of the tariff increases, Bitfinex anticipates further downside for Bitcoin unless traditional assets bounce back. However, even if legacy markets fail to recover significantly, analysts express confidence in Bitcoin’s long-term trajectory, describing it as compelling.
In sum, while Bitcoin’s short-term volatility may persist in response to macroeconomic conditions, its long-term outlook continues to be positive, as stated by Bitfinex analysts.
