This Week in Bitcoin: BTC Holds Steady as Trump’s Trade War Wrecks Stocks

Bitcoin Holds Steady Amidst Global Economic Uncertainty

Despite the escalating trade war initiated by President Trump, Bitcoin’s price remains remarkably resilient. The largest digital coin’s price has been hovering around $82,876 per coin, as per CoinGecko, and has even shown a slight increase over the last seven days. This stability is particularly noteworthy, considering the significant decline in U.S. equities and the dollar, which have been impacted by the recent trade tensions.

Experts Weigh in on Bitcoin’s Resilience

Experts have praised Bitcoin’s impressive ability to withstand the economic uncertainty. In an interview with Decrypt, they noted that the asset has demonstrated "impressive resilience" in the face of Trump’s economic policies. This resilience has been evident in the way Bitcoin and other top cryptocurrencies have bounced back after falling alongside stocks on Thursday.

ETF Action: Bitcoin Funds See Outflows

Bitcoin ETFs have experienced outflows four out of five days this week, with Farside Investors data showing $165 million worth of outflows for the week. However, this decline was partially offset by a significant increase in positive flows on Wednesday, potentially as investors viewed the Bitcoin funds as a safe-haven asset ahead of expected economic turmoil.

Grayscale Expands Its Product Line

Grayscale, a prominent crypto asset manager, has announced the launch of two new products for U.S. investors. The Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI) provide investors with exposure to Bitcoin’s price movements through covered call strategies. This allows investors to buy equity shares they already own at a given price. Additionally, Grayscale has filed with the SEC to convert its private Digital Large Cap Fund to an ETF, offering exposure to a range of cryptocurrencies, including Ethereum, XRP, Solana, and Cardano.

Tether’s Growing Bitcoin Holdings

Stablecoin giant Tether has purchased 8,888 Bitcoins in the first quarter of this year, bringing its total holdings to 92,646. This move is part of Tether’s strategy to allocate up to 15% of its net realized operating profits to stacking Bitcoin, as pledged in May 2023.

Predictions for Bitcoin’s Future

Despite the global economic uncertainty, some experts are predicting a bright future for Bitcoin. With the asset’s price hovering above $80,000, some are even forecasting a $200,000 target by the end of the year. Bitcoin’s history of surprising investors has led some to believe that it may continue to defy expectations and reach new heights.

Expert Insights

James Seyffart, a prominent expert in the field, expressed his surprise at Bitcoin’s resilience in the face of economic uncertainty. In a recent tweet, he noted that Bitcoin’s ability to hold above $80,000 in a broader market selloff of risk assets is a remarkable display of its strength.

Conclusion

As the global economy continues to grapple with uncertainty, Bitcoin remains a beacon of stability. Its impressive resilience in the face of economic turmoil has left experts and investors alike wondering if the asset will continue to surprise. With the launch of new ETFs and the growing interest in Bitcoin, it will be interesting to see how the asset evolves in the coming months.

FAQs

Q: What is the current price of Bitcoin?
A: The current price of Bitcoin is around $82,876 per coin, as per CoinGecko.

Q: How has Bitcoin performed over the last seven days?
A: Bitcoin has shown a slight increase over the last seven days, despite the global economic uncertainty.

Q: What is the significance of the new ETFs launched by Grayscale?
A: The new ETFs, BTCC and BPI, provide investors with exposure to Bitcoin’s price movements through covered call strategies, allowing them to buy equity shares they already own at a given price.

Q: What is Tether’s strategy regarding Bitcoin?
A: Tether has pledged to allocate up to 15% of its net realized operating profits to stacking Bitcoin, which it has been actively pursuing.

Q: What is the prediction for Bitcoin’s future price?
A: Some experts are predicting a $200,000 target by the end of the year, although this is subject to change based on various market factors.