Bitcoin (BTC) is showing growing resilience to macroeconomic headwinds compared with traditional financial markets

The report noted that Bitcoin (BTC) has held up relatively well during the ongoing market downturn, even as the S&P 500 and Nasdaq dropped

Crypto market maker Wintermute has observed that Bitcoin (BTC) is showing greater resilience to macroeconomic headwinds compared with traditional financial markets.

According to an April 14 report by Wintermute, Bitcoin has held up relatively well during the ongoing market downturn. This is in contrast to the S&P 500 and Nasdaq, which dropped to their lowest levels in a year, while bond yields surged to highs not seen since 2007.

“Bitcoin’s decline was comparatively modest, revisiting price levels from around the US election period,” Wintermute wrote.

This marks a notable shift from Bitcoin’s historical behavior in crisis situations. In the past, Bitcoin’s losses were considerably greater than those of traditional finance indexes, the report added. The shift highlights Bitcoin’s “apparent growing resilience amid macroeconomic turbulence.”

Founder of Obchakevich Research, Alex Obchakevich, expects this to be a temporary trend.

Obchakevich said that factors that caused the stability of Bitcoin were growing institutional interest through exchange-traded funds (ETFs) and the promotion of Bitcoin as digital gold due to its decentralization and independence.

Related: Bitcoin traders target $90K as apparent tariff exemptions ease US Treasury yields

A change in Bitcoin market dynamics

Over the past week, Bitcoin’s price increased by 7% to $83,700 — later reaching nearly $86,000 at the time of publication. This growth occurred as the Consumer Price Index (CPI) rose by 2.4% year-over-year, with a month-over-month decline of 0.1% — the first monthly decrease since May 2020. This signals that inflation is cooling off.

Year-over-year CPI percentage change. Source: US Bureau of Labor Statistics

Furthermore, the Producer Price Index (PPI) rose 2.7% year-over-year in March. The same metric stood at 3.2% in February, also showing signs of disinflationary pressures. Still, according to Wintermute, the trend may soon reverse:

Monthly PPI percentage change. Source: US Bureau of Labor Statistics

Related: Trade wars could spur governments to embrace Web3 — Truebit

More market turmoil expected

Bitwise analyst Jeff Park recently argued that US President Donald Trump’s trade policies will create worldwide macroeconomic turmoil and short-term financial crises that will ultimately lead to greater adoption of Bitcoin.

He said that we should expect an inflation increase:

“We should expect to see PPI and CPI increase over the coming months as a result of expiring tariff exemptions and decreased trade volumes. This will put pressure on the Fed to maintain or even raise interest rates.”

Wintermute explained that the ongoing trade war heightens the risk of increased inflation and economic slowdown. Prediction market Kalshi traders recently placed the odds of a recession hitting the US this year at 61%, and JPMorgan sees a 60% likelihood.output: