Trump's trade policy continues to shock global financial markets, prompting a reevaluation of Bitcoin and stocks.
Bitcoin and the crypto market have experienced significant volatility over the past few weeks. This occurred as traders and investors felt the effects of tariffs imposed by US President Donald Trump.
Bitcoin and stocks may be on the brink of significant revaluation.
The recent increase in tariffs has inadvertently positioned Bitcoin as a potential beneficiary. The venture capital firm MV Global highlights the spike in tariffs in the US in 2025, referring to levels last seen in the 1930s. This has resulted in over $10 trillion in stock losses worldwide.
As a result, capital outflows are changing investment flows across various asset classes, noted MV Global.
With a calm recovery of liquidity, analysts expect a significant revaluation of the market, with Bitcoin in focus.
This forecast emerged after the Global Economic Index of MV Global recently started to rise. This often precedes a broader reflation of assets. It is important to note that this indicator tracks both cross-border capital flows and monetary conditions.
Liquidity is quietly recovering in major economies. When the Global Economic Index begins to rise, historical models suggest that Bitcoin and stocks may be on the brink of significant revaluation, noted the firm.
Indeed, Bitcoin's performance is already surpassing traditional markets, adding weight to its average April return of over 34.4%. Macroeconomic instability and capital outflows are driving forces behind this seasonal pattern. Based on this, analysts argue that the current market forecast reflects historical periods when investors moved away from dollar-centered systems in search of decentralized alternatives.
Thomas Greif, head of product strategy at Braiins Mining Ecosystem, agrees. He notes that Bitcoin's volatility aligns more closely with major stock indices.
If you previously thought Bitcoin was too volatile, you might want to reassess your passive investment strategies for retirement, said Greif. According to Matthew Sigel, head of digital asset research at VanEck, this new macroeconomic backdrop could accelerate Bitcoin's transition from a speculative asset to a functional monetary hedge.
Bitcoin is evolving from a speculative asset to a functional monetary instrument — especially in economies seeking to circumvent the dollar and reduce the influence of US-led financial systems, wrote Sigel.
Sigel's thesis reflects a broader trend: Bitcoin is increasingly seen as a strategic asset amid rising geopolitical and trade tensions. This aligns with a recent publication by US Crypto News, which indicated how Bitcoin is gradually becoming a hedge against the risks of traditional finance (TradFi) and US treasury risks.
The potential for Bitcoin to gain popularity as an alternative reserve or settlement asset may be increasing. This optimism arises as more economies move away from traditional US influence on monetary policy. BeInCrypto reports that Russia is considering creating a stablecoin pegged to the ruble to challenge the dominance of the US dollar.
When stock markets experience shocks and liquidity changes, Bitcoin's resilience may rethink how investors safeguard against geopolitical uncertainty.