In April 2025, #bitcoin demonstrated its resilience and appeal as a hedge against macroeconomic instability, #surging past the $100,000 mark despite significant market turbulence. This performance underscores the #growing institutional confidence in digital assets as viable alternatives during periods of policy-induced stress.
The month began with heightened volatility following U.S. President Donald Trump's announcement of new tariffs on April 2, which led to a $300 billion decline in the #GlobalCrypto crypto market. However, the subsequent 90-day pause on these tariffs announced on April 9 facilitated a swift recovery. Bitcoin's price fluctuated between $74,000 and $95,000 before stabilizing above $100,000, contributing to the overall crypto market capitalization surpassing $3 trillion.
Crypto hedge funds capitalized on this volatility. Tephra Digital reported a 15% gain for the month, narrowing its year-to-date loss to 4%. Pythagoras Investments' Alpha Long Biased strategy achieved nearly a 16% return, while Fasanara #DigitalAssets
and Edge Capital posted gains of 0.7% and 0.8%, respectively.
Galaxy Digital, led by Mike Novogratz, continued its strong performance with a 43% return in November and a 90% increase in 2024. The firm's assets under management grew to $4.8 billion, bolstered by strategic acquisitions and the launch of a spot Bitcoin ETF in partnership with Invesco.
Looking ahead, Galaxy Digital predicts Bitcoin will surpass $150,000 in the first half of 2025 and potentially reach $185,000 by year-end, driven by increased institutional, corporate, and nation-state adoption.
As traditional financial institutions and governments increasingly recognize Bitcoin's value proposition, its role as a strategic asset in diversified portfolios is becoming more pronounced. The recent market dynamics reinforce Bitcoin's position as a reliable store of value amid economic uncertainty.