Bitcoin maintained relative stability this week, hovering around the US$94,000 mark despite growing global economic concerns, including fears of a U.S. recession and ongoing trade tensions.
The cryptocurrency briefly dipped following news that the U.S. economy contracted by 0.3% in the first quarter — its first decline since 2022.
However, Bitcoin rebounded quickly, outperforming traditional assets such as gold and tech stocks in April with a gain of approximately 12%.
Market sentiment was shaped in part by U.S. President Donald Trump’s upbeat remarks on a potential trade agreement with India, which investors hope could ease some tariff-related pressures.
Still, uncertainty remains high as other tariffs and weak economic indicators continue to suggest a possible downturn. In this climate, Bitcoin is drawing renewed attention as a potential safe haven.
Often dubbed “digital gold,” Bitcoin’s appeal as a hedge against economic instability is gaining momentum.
Trading close to US$95,000, Bitcoin has officially turned positive for the year. It now shows a correlation of 0.70 with gold, significantly higher than its 0.53 correlation with the Nasdaq 100, according to a report from CoinDesk.
The same report highlights that Bitcoin has just recorded its best weekly performance since late 2024, despite headwinds from Trump’s tariff stance on China.
Adding to its growing legitimacy, governments worldwide now collectively hold over 463,741 BTC — about 2.3% of Bitcoin’s total supply.
The United States leads with 198,012 BTC, followed closely by China with 194,000 BTC. These holdings originate from a mix of asset seizures and strategic acquisitions.
President Trump’s March 2025 executive order establishing a “Digital Fort Knox” helped consolidate U.S. Bitcoin holdings into a national reserve.
Other nations, including the United Kingdom, Bhutan, and El Salvador, are also expanding their crypto reserves, signaling rising state-level confidence in the digital asset.
As traditional markets face turbulence, all eyes are on Bitcoin — increasingly seen as both a hedge and a bellwether in an evolving economic landscape.
