$BTC

Bullish sentiment

Reports come as Bitcoin surpassed $90,000 on April 22 for the first time in six weeks, reflecting that traders are adopting Bitcoin and gold as potential hedges against imminent trade wars and geopolitical volatility.

The price action followed the largest daily net inflows into spot Bitcoin ETFs in the U.S. since January.

The 11 U.S. spot BTC funds collectively attracted over $380 million in net inflows on April 21, according to data from CoinGlass.

Intellectia AI noted that drivers of institutional demand, including corporate buyers of Bitcoin and exchanges like Coinbase and Kraken, could continue to drive positive price action.

Corporate treasuries of Bitcoin already hold nearly $65 billion in BTC, according to data from Bitcointreasuries.net.

Hedge or speculation?

Gold and BTC "seem to have structurally become more important components of investors' portfolios" as they increasingly seek to protect themselves against geopolitical risk and inflation, noted investment bank JP Morgan in a research note from January.

However, the correlation of Bitcoin with gold, historically a preferred safe haven against macroeconomic uncertainty, has been low since U.S. President Donald Trump announced broad tariffs on imports on April 2, Binance Research reported on April 7.

In fact, Bitcoin has been more closely correlated with stocks, according to Binance.

Paradoxically, sustained inflows into ETFs could further diminish Bitcoin's status as a macroeconomic hedge, eroding one of its most attractive features for institutions, said Spencer Yang, a senior contributor to the crypto infrastructure project Fractal Bitcoin, to Cointelegraph.