Wintermute Researchers Highlight Bitcoin’s Strength Compared to Traditional Finance

Amid global economic upheavals, digital gold is showing remarkable resilience compared to traditional assets, according to a study by market maker Wintermute.

Despite the S&P 500 and Nasdaq indices falling to their lowest levels of the year and a record rise in bond yields, the leading cryptocurrency is experiencing a downturn with less pronounced losses, experts noted.

In their view, this marks a significant departure from the usual trend: previously, in crisis situations, Bitcoin lost more than traditional indices. Experts attribute this to the cryptocurrency’s growing resilience to macroeconomic challenges.

Growing Trust

Analyst Alex Obchakevich believes that the current stability of digital gold may be temporary. In a comment to Cointelegraph, he stated that in the context of a trade war, investors are likely to turn their attention back to assets like gold.

According to him, Bitcoin’s strengthened position is linked to institutional interest and growing trust in the cryptocurrency.

Last week, the price of digital gold rose by 7%, reaching $86,000. The growth was observed amid cooling inflation—the consumer price index for March increased by 2.4% year-on-year, decreasing by 0.1% for the first time since May 2020.

This indicates a reduction in price pressure, although the risk of its return remains due to escalating global trade tensions, Wintermute notes.

Analysts warn that further macroeconomic instability could trigger additional volatility in the cryptocurrency market. Despite its achieved resilience, Bitcoin will continue to respond to global economic trends.

$80k—Not the Limit?

Bitwise CIO Matt Hougan noted that the behavior of the leading cryptocurrency amid the current market correction differs from previous cycles. According to him, despite pressure from macroeconomic factors, the cryptocurrency shows resilience and readiness for growth.

“Bitcoin is trading at $84,379—its price has barely changed over the past month. The yield was only 0.07%, even though markets experienced significant turmoil,” Hougan wrote in a note to clients.

The expert emphasized that for the first time in history, the leading cryptocurrency has shown similar dynamics to the stock market during a crisis period. In his view, this does not make it a full-fledged safe haven asset, but it does indicate “remarkable resilience.”

“The world is going to hell, and Bitcoin is trading above $80,000. Isn’t that a sign of its maturity?” he noted.

Hougan linked the change in the asset’s behavior to growing institutional interest. According to him, corporations and governments are beginning to perceive Bitcoin as a digital gold equivalent. This partially weakens its connection to the stock market and reduces volatility.

According to the Bitwise CIO, there are no guarantees that this trend will continue in the future, but Bitcoin’s current resilience underscores its long-term potential.

Back in April, Hougan stated that the devaluation of the US dollar could strengthen the position of digital gold as an asset.