Bitcoin has shown significant growth in recent months amid general macroeconomic instability. Over the past 30 days, its value has increased by 7.68%, which sets it apart from other financial instruments. For example, the S&P 500 and Nasdaq indices have fallen by 6.79% and 8.14%, respectively.
Bitcoin’s Relative Strength
Analysts note that Bitcoin has demonstrated greater resilience compared to the broader financial market. However, they warn that the current gains may be temporary. Despite this, some investors continue to view Bitcoin as a tool for portfolio diversification.
Correlation with Other Assets
Interestingly, Bitcoin has increasingly abandoned the traditional exchange correlation with gold. While gold’s value can fluctuate depending on economic factors, Bitcoin continues to demonstrate its uniqueness. For example, Nvidia, which has significantly outperformed Bitcoin in recent years, still fell by 15.4%.
The Hybrid State of the Crypto Market
The cryptocurrency market is in a kind of hybrid state. On the one hand, macroeconomic risks are growing, on the other, the inflow of funds into spot Bitcoin ETFs is increasing. On April 22, the inflow amounted to $913 million, which indicates growing investor interest in cryptocurrencies.
Bitcoin Dominance
Bitcoin’s share of the cryptocurrency market continues to grow. Its dominance has grown to 64.39%, which emphasizes its leading position among other cryptocurrencies. Market participants will closely monitor the April CPI, which may influence the further movement of Bitcoin prices.
Short-Term Bearish Signals
However, some analysts warn that Bitcoin’s growth may be short-lived. The March Consumer Price Index (CPI) data showed a decline, which some have seen as a bearish signal for Bitcoin. The CPI in March was 2.4% year-on-year. This may indicate a slowdown in inflation and, as a result, a decrease in demand for risky assets, including cryptocurrencies.
The stablecoin mining indicator has also not yet returned to high activity levels, which may indicate that some market participants remain cautious.
Overall, the crypto market situation remains dynamic and unpredictable. Investors and analysts will need to closely monitor developments to make informed decisions.
