2-4-2025 – Whilst financial markets grapple with the impending tariff announcements from the Trump administration, cryptocurrency analysts maintain an unexpectedly optimistic outlook, despite recent market behaviour contradicting initial expectations.
Bitcoin’s trajectory has witnessed a notable decline from its peak of $100,000-plus earlier this year, settling in the $80,000 range throughout March. This downturn challenges earlier predictions that suggested regulatory reforms would bolster cryptocurrency values.
The correlation between digital assets and traditional financial instruments has intensified, notes Marc Ostwald of ADM Investor Services International. He observes that central bank foreign exchange reserve managers are actively reducing their dollar exposure, contributing to the current market dynamics.
Gold’s impressive 18% appreciation since January has overshadowed cryptocurrency performance, though Columbia Business School’s Omid Malekan suggests this paradigm might shift. He posits that Bitcoin could emerge as a digital equivalent to gold, particularly in times of economic uncertainty.
Former Goldman Sachs economist Zach Pandl, now heading research at Grayscale, offers a contrarian perspective. He suggests that market reactions to tariff policies may have already been factored into current valuations. The forthcoming “Liberation Day” announcement, targeting 15 nations including China, Canada, and Mexico, might actually catalyse a market rally.
Institutional confidence remains robust, evidenced by significant developments such as Circle’s stock market debut. Pandl, who transitioned from traditional finance to the digital asset sector, maintains that Bitcoin will achieve unprecedented valuations this year, despite prevailing market sentiment.