Bitcoin shows growing strength during market downturn — Wintermute

A Wintermute report highlights Bitcoin's unexpected resilience against recent market downturns, contrasting with traditional market losses. Bitcoin's decline was less severe than anticipated, defying its past behavior during crises. This resilience is attributed to growing institutional interest and Bitcoin's positioning as "digital gold." However, Alex Obchakevich predicts this trend might be temporary, with escalating trade tensions potentially impacting Bitcoin's stability. Bitcoin's price recently increased by 7%, reaching almost $86,000, coinciding with cooling inflation signals. Despite this, inflationary risks remain due to escalating trade tensions, according to Wintermute. Disinflationary pressures are evident in the Consumer Price Index (CPI) and Producer Price Index (PPI) data. Bitwise analyst Jeff Park anticipates increased inflation and macroeconomic turmoil leading to greater Bitcoin adoption. The probability of a US recession is high, with prediction markets indicating a 60-61% likelihood. Overall, the report suggests a complex interplay of macroeconomic factors influencing Bitcoin's price and future performance.