Bitcoin Retains Two Key Advantages in Current Market, Says Economist

Kraken's global economist Thomas Perfumo reports that the crypto market is performing better than expected. Key insights include:

The timing of recent tariffs coincides with a critical period for crypto, nearing 12 months post-Bitcoin halving.
Evidence suggests crypto may be breaking out of its typical cyclical behavior.
Investors are hesitant to shift away from Bitcoin, seeking more certainty before investing further.
Bitcoin is viewed as a reliable store of value and has strong ties to traditional capital flows via ETFs.
Potential pullbacks in Bitcoin could negatively impact altcoins due to their higher beta.
Altcoins need a demand catalyst to recover, which is currently absent.
Perfumo remains cautiously optimistic about Bitcoin ETF flows and does not expect immediate fallout from potential crypto IPO pauses.
The overall sentiment in the crypto industry appears stable, but future changes are possible.

Investors should proceed with caution amid this uncertain environment.