Key Points
- Bitcoin’s use case as a strategic hedge against market volatility is set to face a significant real-world test.
- Investors are repositioning as macroeconomic conditions shift, with Bitcoin eyeing a crucial resistance zone at $106k.
Bitcoin’s Use Case Under Scrutiny
The crypto market is witnessing a cautious optimism, fuelled by tariff reductions in the U.S. and China.
This development has led some to believe that the path to a new all-time high for Bitcoin has become clearer.
However, Bitcoin’s use case is about to undergo a significant real-world stress test.
Bitcoin as a Hedge in a Post-Tariff World?
Since the start of tariff discussions on April 2, Bitcoin has consistently outperformed stocks.
For instance, in the week following April 2, the S&P 500 plummeted 12%, while Bitcoin only experienced a minor 5% dip.
This resilience, despite a $1 billion outflow from Bitcoin ETFs on a weekly basis, has cemented Bitcoin’s role as a strategic hedge against market volatility.
However, with macro risks now easing, it remains to be seen if Bitcoin can continue its upward trajectory.
As macroeconomic tailwinds shift, investors are repositioning.
S&P 500 futures are already up by +3%, with top tech giants back in the green.
Simultaneously, the bond market is experiencing a sell-off, with the 10-year U.S. Treasury yield rising nearly 6%, reaching 4.433% bps.
Risk-on capital is back in full swing, and Bitcoin is eyeing a pivotal resistance zone at $106k.
The question now is whether Bitcoin can prove its use case as a hedge in this post-tariff calm.
With rate cuts looking increasingly unlikely, this could be the trigger for Bitcoin’s next move.
It’s a critical time for Bitcoin to prove its ‘safe-haven’ use case once and for all, and show the market that it’s not just a speculative play, but a legitimate hedge.
