Bitcoin has outshined gold and traditional markets, gaining 33% since early April. Amidst rising volatility and investor concern over U.S. assets due to tariff policies, Bitcoin could reach new highs, with predictions of around $120,000 by mid-2025.
Bitcoin has been gaining momentum lately, even outperforming gold since April 2, with gold recording an 11% rise. The cryptocurrency’s measures of expected volatility have hit their lowest point in 18 months. This trend highlights a significant shift, particularly as investors are increasingly seeking alternatives amidst uncertainties in traditional markets.
As of late, Bitcoin has surged about 33% since it hit lows earlier in April. This is surprising given its tendency to mirror the performance of equities, especially the tech sector, during periods of market turmoil. Most notably, this recent rally suggests a renewed confidence in Bitcoin as a viable investment option.
The growing unease surrounding the Trump administration’s trade policies has also shifted investor focus towards Bitcoin. After a sharp dip following the announcement of hefty tariffs, Bitcoin has gradually recovered ground according to data from VanEck. Investors seem to be steering away from U.S. stocks, Treasuries, and even the dollar, favouring the leading cryptocurrency instead.
Investment in Bitcoin and other digital assets has surged impressively. CoinShares reports that about $5.5 billion has flowed into digital asset-focused investment products recently, with $1.8 billion specifically directed towards Bitcoin products just in the week up to May 3. This influx indicates a significant bullish sentiment towards the cryptocurrency market.
Geoff Kendrick, who leads digital asset research at Standard Chartered Bank, suggests that if the current trend of moving away from U.S. assets continues, Bitcoin is likely poised for more gains. In a note to his clients, Kendrick predicts that a strategic asset reallocation away from U.S. investments could trigger a new upswing in Bitcoin, which he forecasts might reach around $120,000 by the second quarter of 2025.
In summary, Bitcoin is emerging as a preferred choice for many investors worried by global uncertainties in the market and the impacts of changing U.S. tariff policies. As more funds flow into Bitcoin products and confidence grows, the landscape of investment is rapidly evolving, with potential record highs on the horizon for the cryptocurrency.
