Grayscale Bitcoin plummet Despite Still Bullish: "Will See Excessive Interest" - Coin Bulletin

According to Grayscale’s analysis, Bitcoin is showing a positive outlook by standing strong despite the weakening of the dollar and the threat of stagflation.

Bitcoin (BTC), despite the significant decline in the markets following the new tariffs introduced by Trump, only lost 8% in value, which encouraged investors.

While there were huge losses in the stock markets after the new tariff plans announced by US President Donald Trump on April 2, it was noteworthy that Bitcoin’s (BTC) performed much stronger than traditional markets. In particular, major stock markets such as the Nasdaq fell by about 15% in a short period of time, while BTC’s loss was much lower than expected. Grayscale Research Director Zach Pandl said that this 8% loss is the most positive decline for Bitcoin in history.

Pandl emphasized that historically Bitcoin is three times more volatile than the Nasdaq index. In this context, it would be expected that Bitcoin would lose about 45% of its value while Nasdaq dropped by 15%. However, the actual situation fell significantly short of this expectation. According to Pandl, this situation is a positive development for Bitcoin investors and a sign that BTC will remain strong in the long run.

Does stagflation affect Bitcoin?

Pandl pointed out that the US economy may face the threat of stagflation in the coming period. The analyst stated that historically, during periods of stagflation, while stocks and bonds lose value, assets with limited supply such as gold, copper, and Bitcoin have stood out, saying, “In this environment, Bitcoin may attract more interest.”

Additionally, Pandl, who believes that Bitcoin’s appeal will increase in the event of a weakening of the dollar’s position as a global reserve currency, stated that investors are moving away from technology stocks and towards alternative assets like BTC. As evidence of this situation, he cited the value increase of BTC against the Roundhill Magnificent 7 ETF, which includes technology giants.

Zach Pandl, while predicting that Bitcoin prices will reach new historical highs in the medium term, added that investors should focus not on the recent decline, but on the strong long-term fundamentals.