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Bitcoin Leads US Equity Markets Amid Macro Developments, Yet Stays Resilient: Report
According to recent reports, bitcoin has taken the lead in reacting more like a traditional financial asset that trades based on global liquidity flows and macroeconomic developments. Despite this heightened sensitivity, it’s essential to note that BTC has shown remarkable resilience by staying above pre-election price levels even amidst broader risk-off events like the latest tariff announcements.
According to a report from Bitfinex, bitcoin is no longer immune to macroeconomic influences. The data suggests that BTC now behaves more similarly to traditional financial assets, which are heavily affected by global liquidity flows and U.S. economic developments. This newfound sensitivity is not only evident in its reaction to inflation metrics and Fed rate policies but also in its response to President Trump’s latest announcements.
Notably, the cryptocurrency fell below $100,000 and even touched an intraday low of $91,657 on Monday due to uncertainty triggered by the tariff news. It’s worth noting that bitcoin experienced a more pronounced decline compared to other assets due to its nature as a tail-risk asset. This is because market sentiment tends to weaken when such assets experience sharp declines.
Despite this increased sensitivity, it’s important to recognize that bitcoin has continued to exhibit structural strength in higher time frames. It has also outperformed U.S. equities like the S&P 500 and held strong even amid broader risk-off events.
Long-term Outlook Remains Positive
While BTC may be experiencing a temporary downturn due to macroeconomic pressures, it’s crucial to maintain a long-term perspective. Since its rally during President Trump’s inauguration, bitcoin has consistently shown a downward trend, forming a double top structure at the $108,000 level and currently trading within a 15% range since mid-November.
The Bitfinex analysts emphasize that such ranges often resolve in either an upward or downward direction within 80-90 days. This means that BTC will likely experience a decisive price move in the coming weeks, under the influence of macroeconomic developments.
It’s worth noting that bitcoin faces further downside risks unless legacy markets see significant recovery. However, even if the market does not witness substantial recovery, analysts remain confident in bitcoin’s long-term trajectory, which they describe as compelling.
As a result, the report concludes that while bitcoin may be more reactive to macroeconomic factors, its overall outlook remains positive and resilient despite the short-term volatility.
Source: cryptopotato.com
