The leading cryptocurrency has shown greater resilience following US President Donald Trump’s “Day of Liberation” than during previous crises, according to a Bernstein report, as reported by The Block.
In the chaos of global markets, the reaction of the “digital gold” was deemed “simply impressive,” experts noted.
In past periods of turbulence, such as the COVID-19 pandemic, Bitcoin lost between 50% and 70% of its value.
“The current 26% drop from the ATH suggests demand for Bitcoin from more resilient capital,” the review stated.
Experts highlighted that despite its status as a leading indicator of risk appetite, the primary cryptocurrency should still be viewed as a long-term store of value.
“In our view, Bitcoin over time is a probabilistic ‘gold’. It trades as a more volatile and liquid version of the precious metal,” they explained.
The correction from the cyclical peak in the current cycle has increased to 26.62%. For comparison, in 2018 and 2022, the figure was 83% and 73%, according to CryptoQuant.
Earlier, analysts from the firm reported an intensification of bearish conditions in digital gold.
In April, Nansen predicted the crypto market would reach a bottom by June.
CryptoQuant’s founder and CEO, Ki Young Ju, announced the end of Bitcoin’s bull run. According to his forecast, prices will decline or remain sideways over the next six months to a year.