Bitcoin’s resilience amid recent market turbulence indicates strong underlying fundamentals, according to analysts at Swissblock.
In a whirlwind of economic headlines this week, former President Donald Trump’s decision to postpone auto tariffs on Canada and Mexico helped calm investor nerves, with bitcoin (BTC) leading the cryptocurrency market’s rebound.
The U.S. government announced on Wednesday that it would push back the implementation of tariffs on auto parts imported from Canada and Mexico by one month, a reversal from the prior day’s decision to enforce them immediately. Additional positive sentiment came from Germany’s move to relax debt limits for infrastructure spending and China’s increase in its target deficit, both of which fueled risk-on sentiment across global markets.
Bitcoin surged past $90,000 following the news, marking a 3.7% increase in the past 24 hours. The broader CoinDesk 20 Index reflected this momentum, with nearly all assets posting gains. Notably, Bitcoin Cash (BCH), Chainlink (LINK), and Aptos (APT) recorded double-digit percentage increases.
Traditional equities also saw an uplift, with the Nasdaq climbing 1.2% and the S&P 500 rising 1.5% during the afternoon session. Crypto-related stocks rebounded from early-week lows, with Coinbase (COIN) gaining 3.5% and MicroStrategy, the largest corporate holder of bitcoin, surging nearly 10%.
Geopolitical uncertainty and trade tensions have been at the forefront of investor concerns, weighing down both traditional equities and digital assets in recent weeks. Historically, such risk-off periods have led investors to seek refuge in the U.S. dollar, often putting downward pressure on cryptocurrencies, noted Joel Kruger, market strategist at LMAX Group. However, this time, the U.S. dollar index (DXY) has dropped to its weakest level since early November, declining over 5% from its mid-January peak.
“With Federal Reserve expectations shifting toward more rate cuts in 2025 and bitcoin’s growing role as a store of value, we believe there are compelling reasons to expect BTC to remain well-supported on dips,” Kruger stated.
Swissblock’s crypto analytics team highlighted that despite recent volatility, their Bitcoin Fundamental Index—a metric evaluating network health—has remained stable.
“Bitcoin’s fundamentals are nearing a transition into a bullish phase, driven by sustained improvements in liquidity and network expansion,” Swissblock analysts noted in a Telegram update. “This strength suggests that BTC is unlikely to enter a prolonged bear market.”
