In the crypto world, Bitcoin has become known as the Best for Crisis Investment, according to Octa

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by Rodion Krotov

The report by Coinbase for April 2025 says that the capitalisation of cryptocurrencies—without taking Bitcoin into account—has dropped by 41% from $1.6 trillion in December 2024 to $950 billion by early April 2025. Valuations have now reached their lowest level since the 2021–2022 period which makes this the largest fall over a two-year period. Even so, some digital assets have not been hit as hard by this downturn. Bitcoin’s price declined by just under 20% over the same period which reflects a move toward more reliable assets.

In fact, Bitcoin has bounced back strongly and set a new high at above $110,000 on May 21, while Ethereum and XRP have not followed suit. As capital retreated from riskier altcoins, investor sentiment has soured, prompting Coinbase to warn of an emerging ‘crypto winter’ scenario.Global broker Octa, active in digital asset transactions, sees this as a decisive phase of risk reallocation, with traders seeking clarity before any meaningful return to risk

Pressures in the markets are increasing

Source: Octa Broker

Octa notes that certain things are putting strain on the crypto industry:

Even though venture capital funding improved in late 2024, it still lags behind the 2021–22 highs by roughly 50 to 60 percent.
It is getting harder for smaller companies to procure liquidity.

Investors are moving away from risky assets because of issues such as unknown world situations and increases in tariffs.

Because investors are more hesitant, most of the damage from the market retreat has hit the likes of DePINs, memecoins and AI tokens.

Kar Yong Ang, a financial market analyst at Octa broker, explains: ‘As of right now, the market clearly sees more value in Bitcoin vs the rest of the crypto universe. The global macroeconomic situation is highly unstable, with tariffs drama still unfolding and rising protectionism potentially threatening the U.S. dollar’s reserve currency status. As a result, investors’ capital has migrated from high-risk crypto space like alt-coins into relatively low-risk Bitcoin. In fact, Bitcoin has become a sort of “safe-haven coin” of the crypto market’.

Bitcoin’s Stability in Wires compared to Macro Uncertainty

Stress is being put on wider financial markets as well. On May 22, the U.S. 20-year bond impressed 5.15%, very close to its two-year peak and the DXY sank just under 100—a sign investors are losing faith in the dollar as a safe haven. Moody’s change in the U.S. credit rating helps highlight worries about its fiscal and trade deficits.

Because cryptocurrencies are considered high-risk assets, they’ve seen significant changes due to the current macro environment. Bitcoin is not following the trend.

Kar Yong Ang explains: ‘At first, the BTC rally appeared to be highly speculative: the market had positively reacted to Trump’s softer stance towards the Federal Reserve (Fed) Chairman and U.S.-China trade deal. Later, however, Bitcoin became the only major crypto coin to set a new all-time high. It suggests a continuing flight to perceived safety within the crypto universe, while alt-coin flows remain diminished’.

Worries Are Not Gone

Even as Bitcoin continues to endure, a wide range of government and economic dangers persist. A warning from President Trump that he may enact a 50% tariff on EU goods increased selling pressure in BTCUSD and boosted XAUUSD, the main gold benchmark.

For investors, it is important to keep an eye on:

Each group’s total market cap minus Bitcoin
How VC funding works
Recent changes in regulations in the U.S., EU and Asia
News on current trade talks around the world

We should use caution for the upcoming months. Though Bitcoin’s price jump might look attractive, Octa analysts advise you to wait for dips instead, especially with strong support at $105,000, $98,000, $94,000, $89,000 and $84,000.

CFD trading should be considered high risk and may not be the right investment for all people. Trading decisions made on feelings without much thought can result in you losing more. Trade in a responsible way and fully understand your own limitations.

Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

Since its foundation, Octa has won more than 100 awards, including the ‘Most Reliable Broker Global 2024’ award from Global Forex Awards and the ‘Best Mobile Trading Platform 2024’ award from Global Brand Magazine.