Bitcoin’s impressive run since April could face headwinds, warns Piper Sandler, citing growing concerns about risk sentiment across financial markets.
The investment firm’s chief strategist, Michael Kantrowitz, believes the crypto’s trajectory is closely tied to broader market appetite—and a shift may be coming.
After months of gains fueled by institutional adoption and ETF inflows, Bitcoin now trades at record highs. But its correlation with high-risk equities means it may not be immune to a potential market pullback. Kantrowitz points to the recent “Goldilocks” narrative—an economic environment viewed as balanced and favorable—as fragile, especially with the August 1 tariff deadline approaching and inflation expectations creeping higher.
“Bitcoin still behaves like a high-beta asset,” he noted, referencing its synchronized move with stocks during macro shocks. When Trump introduced new tariffs in April, both Bitcoin and the S&P 500 dropped sharply—evidence that the crypto remains sensitive to economic policy shifts.
While the S&P 500 gained 27% and Bitcoin jumped over 50% since April, Kantrowitz sees signs of overheating. He urges investors to consider risk management over chasing speculative momentum, especially during August, historically a weak month for both equities and digital assets.
This isn’t a bearish call on markets overall, he clarified, but rather a caution against assuming current optimism will persist uninterrupted. Earnings may support stocks going forward, but the leadership could shift away from risk-heavy names—including Bitcoin.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-warning-august-may-see-a-pull-back-as-macro-pressures-build/