Bitcoin ($BTC) is once again showing its strength as a safe haven during uncertain economic times. According to new research from Matrixport, the popular cryptocurrency is being used more and more to protect wealth as the US dollar weakens.
This is similar to how Bitcoin has been used in past financial crises in places like Argentina and Turkey, and during the European debt crisis.
Recently, Bitcoin has broken through some important technical barriers, meaning it’s gaining strength in the market. It’s also been performing better than more traditional US investments like stocks and bonds.
With Bitcoin’s price climbing close to $88,000, experts believe the next big test will be the $90,000 level.
“Bitcoin is becoming a serious option for investors who want to move away from US dollar-based assets”, said the head of research at Presto Research, Peter Chung.
He pointed out that the decline in the value of the US dollar isn’t just a short-term problem—it’s a deeper, long-term issue.
Chung also mentioned that the US economy’s share of the global economy has dropped by half since World War II. This gives investors another reason to look for options beyond the dollar.
At the same time, recent political pressure on the Federal Reserve, including calls from US President Donald Trump to cut interest rates early, has made investors less confident in the dollar.
These factors have helped Bitcoin stay strong while traditional markets have suffered. On 21 April, US stocks took a big hit—$1.5 trillion was wiped out in just one day.
The S&P 500, Nasdaq 100, and Dow Jones all dropped between 2.3% and 2.5%. Meanwhile, Bitcoin actually gained, rising above $88,000.
The link between Bitcoin and US tech stocks, especially those in the Nasdaq, is starting to weaken. In 2025 so far, Bitcoin has only fallen by about 6%, compared to a 15% drop in the Nasdaq.
Since Donald Trump’s win in the November 2024 election, Bitcoin has gone up 30%, while the Nasdaq has dropped by 12%. This shows that Bitcoin is increasingly being seen as a strong, independent asset.
Big investors are returning to Bitcoin
As the global economic situation becomes more unstable, large investors are slowly coming back to Bitcoin. Recently, Bitcoin exchange-traded funds (ETFs) brought in $381.4 million—the biggest daily amount since the end of January.
This is an important sign that institutions are regaining confidence in Bitcoin, especially as traditional assets like stocks and bonds continue to struggle.
The ARKB ETF, run by Ark Invest and 21Shares, saw the largest inflow at $116.13 million, bringing its total to $2.6 billion. Fidelity’s FBTC came next with $87.61 million, bringing its lifetime total to $11.37 billion. Bitwise’s BITB took in $45.1 million, while BlackRock’s IBIT added $41.6 million.
Despite this positive trend, the overall ETF market still shows signs of caution. From 14 to 17 April, net inflows into Bitcoin ETFs were only $15.85 million—a small bounce back after the previous week saw $713 million flow out.
“This rebound is a good sign, but it’s still not enough to say that institutional money is flooding back in. Investors are being careful because of rising trade tensions and uncertainty around interest rates”, one analyst said.
Right now, there are growing concerns about international trade. China has raised tariffs, and Japan is pushing back against US trade demands.
These developments are making investors more hesitant about putting money into risky assets like Bitcoin until they have a clearer view of the future.
Signs point to a bullish market, but resistance lies ahead
Bitcoin’s recent price increase isn’t the only reason people are paying attention. Market data shows there’s a growing sense of optimism among traders.
For example, the amount of money in Bitcoin futures—called open interest—has gone up 5% in just one day, reaching $58.46 billion. This increase shows that more people are betting on Bitcoin’s future, which is usually a good sign.
Also, Bitcoin’s “funding rate”, which reflects how much long-position holders (those betting Bitcoin will go up) are paying, remains positive at 0.0068%. This means more people are willing to pay to keep their bullish positions.
Data from options trading also supports this outlook. According to Deribit, the ratio of put options (bets that prices will fall) to call options (bets they will rise) is at 0.71.
A lower ratio means more people are betting on price increases, suggesting a generally optimistic mood.
Still, there are challenges ahead. The $88,000 level is a tough one to break. It includes several technical indicators like the 200-day simple moving average (SMA), which now sits at $88,245.
A popular Japanese technical analysis tool called the Ichimoku Cloud also marks this area as a resistance zone.
This range also includes the high point from 24 March, when Bitcoin hit $88,804 before falling back. Because of this, many traders see it as a crucial level. If Bitcoin can break through, it could lead to a big rally. But if not, it may fall back again.
Crypto analysts say that Bitcoin’s move above its 30-day moving average is a strong technical signal. However, it needs to break through the resistance zone that stopped it last time for the rally to continue.
Psychology plays a role too. Traders who bought Bitcoin during the recent dip might want to sell and take profits as the price nears this resistance level.
However, if Bitcoin breaks above this zone, many investors may rush in due to fear of missing out (FOMO), driving prices even higher.
Bitcoin is also close to outperforming the Nasdaq 100 index again. Right now, the ratio of Bitcoin’s value to the Nasdaq 100 is 4.96, just below the January high of 5.08 when Bitcoin hit $109,000.
This ratio has hit new highs during each major Bitcoin cycle—2017, 2021, and now in 2025—showing its ability to outperform tech stocks.
Some reports say that the US Treasury is thinking about increasing its Bitcoin holdings. This might happen through asset forfeitures and other strategies. If true, this would be a big step and could help support Bitcoin’s price in the long run.
At the same time, there’s growing concern about a possible US recession. A new report from JPMorgan says there’s a 60% chance of a recession in 2025.
The bank expects the Federal Reserve to start cutting interest rates in September, and continue lowering them into early 2026.
