{"id":21189,"date":"2025-04-08T20:01:58","date_gmt":"2025-04-08T20:01:58","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=21189"},"modified":"2025-04-08T20:01:58","modified_gmt":"2025-04-08T20:01:58","slug":"bitcoin-resilience-suggests-bullish-outlook-as-dollar-weakens-stagflation-looms-grayscale","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=21189","title":{"rendered":"Bitcoin Resilience Suggests Bullish Outlook as Dollar Weakens, Stagflation Looms \u2014 Grayscale"},"content":{"rendered":"
\n

Bitcoin investors may not exactly feel it, but BTC has been a relatively good bet since President Trump’s tariff plans last week resulted in historic losses in traditional markets. While stocks and other mainstream investments have been falling off a cliff since the \u201cLiberation Day\u201d announcement April 2, bitcoin has remained relatively steady losing \u201conly\u201d 8% of its value.<\/p>\n<\/p>\n

\u201cI think this is the most bullish 8% drawdown I\u2019ve ever seen in bitcoin,\u201d said Zach Pandl, head of research at Grayscale, a leading crypto investment manager.<\/p>\n<\/p>\n

Based on historical data, you would expect bitcoin to have three times the volatility of the Nasdaq, Pandl said. And yet while the Nasdaq was down 15% at the beginning of trading April 8 (compared to April 2), bitcoin was nowhere near 45% down.<\/p>\n<\/p>\n

In other words, an 8% decline is a positive as historical patterns predicted a far steeper tumble.<\/p>\n<\/p>\n

\u201cI think crypto investors should be extremely pleased with the modest pullback in bitcoin,\u201d Pandl, a former analyst at Goldman Sachs, told CoinDesk.<\/p>\n<\/p>\n

\u201cIt reflects that tariffs \u2014 while they are a short term risk-off event for markets \u2014 are probably to be something that\u2019s supportive for bitcoin adoption in the longer run. I think the relatively moderate drawdown reflects that,\u201d he added.<\/p>\n<\/p>\n

Pandl is bullish on bitcoin in an environment where the dollar is potentially losing its place as a global reserve currency.\n<\/p>\n

\u201cStagflation is going to be negative for stocks and bonds, and, historically, that has been positive for scarce commodities. Investors who are concerned by stagflation are looking for alternative assets that can drive returns. In traditional markets that might be gold or copper, and bitcoin,\u201d he said.\n<\/p>\n

Pandl says bitcoin\u2019s relatively good performance reflects a rotation away from large-cap tech stocks towards commodity assets like bitcoin. You can see this in the performance of bitcoin against Roundhill \u201cMagnificent 7 ETF.\u201d You can now buy more of that ETF with one bitcoin compared to a week ago.<\/a><\/p>\n<\/p>\n

To those who subscribe to Bitcoin\u2019s long-term investment thesis as a safe haven in uncertain times, the last few days have been a test case where bitcoin is winning. In theory, say these advocates, bitcoin should benefit as investors seek alternatives to dollars in times of stress.<\/p>\n<\/p>\n

\u201cIf you believe that the erosion of the dollar\u2019s position is part of the bitcoin thesis, then your conviction in that thesis in the last week should have gone up,\u201d Pandl says.<\/p>\n<\/p>\n

He expects bitcoin\u2019s price to rise in the medium-term, reaching new all-time-highs this year.<\/p>\n<\/p>\n

\u201cThe price of bitcoin is down but conviction is up and there\u2019s no need to change the medium term price outlook,\u201d he said.<\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bitcoin investors may not exactly feel it, but BTC has been a relatively good bet since President Trump’s tariff plans last week resulted in historic losses in traditional markets. While stocks and other mainstream investments have been falling off a cliff since the \u201cLiberation Day\u201d announcement April 2, bitcoin has remained relatively steady losing \u201conly\u201d […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-21189","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/21189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21189"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/21189\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}