Bitcoin re-surpassed the $90,000 level today amid renewed investor interest following bearish economic forecasts from the International Monetary Fund (IMF). BTC’s rally comes amid growing concerns about inflation and a global economic slowdown, reinforcing its role as a perceived hedge against economic uncertainty. The IMF’s April 2025 World Economic Outlook cut its U.S. growth forecast to 1.8% from 2.7%, while raising its inflation forecast to 3% from 1.9%. The report also predicted a broader global slowdown, prompting investors to exercise caution and turn to alternative assets such as Bitcoin and gold. Patrick Liou, VP of institutional sales at Gemini, pointed to the growing divergence between Bitcoin and traditional financial assets. Related News: All Eyes on Bitcoin and Gold: How Much Will BTC Price Need to Rise to Surpass Gold's Market Cap? Here is the Utopian Scenario “We saw the divergence really start to happen on Sunday night,” Liou said. “Investors are looking to be in risk-off mode right now as they evaluate the U.S., amid Trump’s sharpening rhetoric on the Fed and, of course, trade deal negotiations after ‘Liberation Day,’ when tariffs were introduced. Interestingly, one of the rotations was toward Bitcoin.” The rally also coincided with a weaker U.S. dollar and rising gold prices, both signs that the market is shifting toward safer asset classes. Analysts believe institutional flows into Bitcoin have further reinforced its decoupling from equities and tech stocks. “Bitcoin continues to show signs of resilience,” Compass Point analyst Ed Engel wrote in a note. “Bitcoin’s correlation with stocks historically approaches 1.0 during macro sell-offs, but its 30-day correlation with the S&P is just 0.65.” “While we are constructive on Bitcoin’s recent divergence, the recent strength comes with light volumes,” he said. “This reduces our belief that Bitcoin can break above the $93,000 resistance level without a significant catalyst such as Fed easing or tariff agreements. However, long-term holders of Bitcoin remain committed and buying from Strategy is increasing as BTC liquidity wanes… these factors could support greater resilience amid equity and fixed income volatility.” *This is not investment advice. Continue Reading: Analysts Revealed “Why Bitcoin is Rising”, Saying It Will Be “Difficult” to Rise Above This Critical Level
