Binance Assesses the Impact of Trade Tariffs on Bitcoin
Date: 2025-04-08 Author: Oliver Abernathy Categories: BUSINESS
According to their data, Bitcoin’s initial reaction to the tariff wars was unstable, but over time, its correlation with the S&P 500 has become more pronounced. This is in contrast to gold, whose correlation has gradually decreased.
“Such changes indicate that macroeconomic factors such as trade policy and rate expectations are beginning to have a significant impact on the crypto market, temporarily overshadowing traditional demand factors,” Binance Research emphasized.
Bitcoin’s correlation with traditional financial instruments (TradFi) usually increases during periods of market stress and decreases when conditions stabilize.
Despite volatility, the first cryptocurrency shows resilience, holding positions or recovering at times when traditional risk assets lose ground. Long-term holders continue to add to their holdings, indicating high confidence and minimal signs of capitulation even amid volatility.
“This trend suggests that Bitcoin, despite short-term fluctuations, retains the potential to strengthen its independent macroeconomic identity,” the analysts added.
If the US Federal Reserve moves to cut rates while inflation remains high, Bitcoin could gain additional attention as a depreciation-resistant asset, according to the experts.
A prolonged trade conflict could test the cryptocurrency industry by slowing retail investor inflows, limiting institutional investment, and reducing venture funding, Binance Research warns.
In the coming months, analysts recommend paying attention to macroeconomic factors such as core inflation, global growth rates, and central bank decisions to assess the market’s future outlook.
Binance CEO Richard Teng noted that trade protectionism adds significant volatility to global markets.
“In the short-term, macroeconomic uncertainty often triggers risk aversion, with investors choosing to wait and see how growth, policy, and trade play out. However, in the long-term, this environment may fuel interest in cryptocurrencies as independent value stores,” he said.
Teng also added that many long-term investors continue to view cryptocurrencies as stable assets amid economic uncertainty and policy changes.
