According to a report by 21Shares, the current landscape of the cryptocurrency market illustrates how Bitcoin adapts to financial shocks.
Bitcoin as Macro Hedge
The report compares the current conditions to those in 2021, when Bitcoin weathered major external shocks like China’s mining ban. This time, central bank policy uncertainty and rising global liquidity reinforce Bitcoin's role as a macro hedge.
Investor Sentiment Shifts
21Shares notes that Bitcoin’s response to stress in traditional finance has changed. Instead of panic selling, investors now see banking failures and monetary policy shifts as bullish signals.
Long-Term Holders and Institutional Inflows
The report also highlights strong on-chain data, where long-term holders continue to accumulate, with no evidence of widespread selling. Meanwhile, spot Bitcoin ETFs are attracting increasing institutional inflows, bolstered by improved regulatory clarity and infrastructure growth.
Altogether, 21Shares argues that Bitcoin is well-positioned for further upside, backed by fundamental strength rather than short-term hype.
