Bitcoin may lag behind stocks, according to analysts at Bitfinex | Bitfinex: Bitcoin price could underperform stocks as ETF outflows continue

 While the temporary suspension of tariffs by Trump provided some relief to the markets, traders remain hesitant to fully engage with risk assets.

The cryptocurrency markets are experiencing a blend of cautious optimism and ongoing uncertainty. Although the tariff suspension has contributed to market stabilization, traders are still reluctant to make significant investments in risk assets, as noted by analysts from Bitfinex in an interview with crypto.news. Consequently, Bitcoin (BTC) has been trading within a narrow range, and the inflows into ETFs have been lackluster.

Bitfinex analysts assert that President Donald Trump's 90-day tariff suspension does not offer a long-term solution. Rather, it serves as a short-term reprieve that does not address the underlying trade uncertainties. This situation has left investors cautious about riskier assets such as Bitcoin, indicating a prevailing sense of wariness.

"The 90-day tariff suspension by Trump is merely a postponement, not a resolution. Investors recognize that the threat of tariffs still looms, which makes it unlikely for market positioning to shift significantly towards riskier assets at this time," stated Bitfinex analysts.

Simultaneously, Bitcoin ETF inflows have been disappointing. As of April 10, ETFs experienced their sixth consecutive day of negative inflows, with daily outflows amounting to $149 million. The most significant single-day outflow occurred on April 8, when $326 million was withdrawn from Bitcoin ETFs.

Bitcoin may lag behind stocks, according to analysts at Bitfinex. 

They suggest that in the current market conditions, cryptocurrencies are expected to perform worse than equities until a new catalyst arises. Such catalysts could include a shift towards a more accommodative stance from the U.S. Federal Reserve or an influx of liquidity into the crypto markets.

"While Bitcoin might gain from a slight easing of macroeconomic pressures, the market is likely to await more definitive indicators—such as a change in the Fed's communication or improved liquidity conditions—before making a significant move back into cryptocurrencies. We anticipate that, relative to equities, crypto may underperform until these developments occur."

There is potential for relief stemming from former President Trump’s pressure on Fed Chair Jerome Powell to lower interest rates. However, with inflation concerns on the rise, the Fed is expected to maintain its current trajectory unless there is a change in leadership. It is worth noting that a recent Supreme Court ruling has allowed Trump to temporarily remove officials from independent agencies, leading to speculation that Powell could be next.