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Sovereign wealth funds and other institutional investors drove this month’s Bitcoin rally, even as retail traders rushed for the exits, Coinbase said.
“Institutions, sovereigns, patient pools of capital were piling in,” said John D’Agostino, head of strategy at Coinbase Institutional, in an interview with CNBC. “At the same time, the retail market was exiting—largely through ETFs.”
D’Agostino said that many institutional investors are treating Bitcoin as a hedge against inflation and macroeconomic uncertainty, particularly because of concerns around President Donald Trump’s tariff policies.
He compared Bitcoin’s current role in portfolios to that of gold. “Bitcoin is trading on its core characteristics, which again are similar to gold,” he said. “You’ve got scarcity, immutability, and non-sovereign asset portability.”
D’Agostino went on to say that Bitcoin is on a “very short list of assets that mirror the characteristics of gold.”
Bitfinex Analysts Warn Bitcoin’s Resilience Might Not Last
The broader financial market has undergone a steep correction since the start of the year amid an ongoing tariff war between the US and its trade partners. US equities in particular took a knock in recent weeks.
During the macroeconomic turbulence, Bitcoin has proven relatively resilient. While the S&P 500 tumbled over 6% in the last months, BTC registered a gain of roughly the same amount.
🇺🇸 CNBC JUST SAID #BITCOIN IS OBVIOUSLY DECOUPLED FROM THE NASDAQ
IT’S HAPPENING!!! 🚀 pic.twitter.com/0TnM0uWjM5
— Vivek⚡️ (@Vivek4real_) April 22, 2025
Despite BTC’s recent strength, and Trump hinting at easing tariffs on China, Bitfinex analysts warn that it might be too early to know whether Bitcoin’s recent divergence from the broader financial market will continue.
In an April 21 research report, the Bitfinex analysts said BTC’s relative strength against US equities “appears real,” but added that the decoupling is yet to be confirmed as structural.
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