Bitcoin Shows Resilience Amidst Stock Market Turmoil
After enduring a frustrating few weeks where the price of bitcoin (BTC) seemed to mirror the movements of the Nasdaq index, the world’s foremost cryptocurrency is beginning to exhibit signs of independence as traditional stock prices shift from struggling to experiencing significant declines.
Following a staggering 6% drop in the Nasdaq on Thursday, the index continued its downward trajectory with an additional 5% decline recorded halfway through the trading day on Friday. In contrast, bitcoin is maintaining its position around $83,000, reflecting a modest increase of approximately 1% over the past 24 hours. Since President Trump unveiled his tariff package on Wednesday evening, BTC has only dipped about 3.5%.
Impressively, bitcoin is significantly outpacing crypto-related stocks such as Coinbase (COIN), MicroStrategy (MSTR), Semler Scientific (SMLR), and various mining firms, all of which have seen their stock prices plummet by double-digit percentages over the last two sessions. The broader cryptocurrency market is also exhibiting strength, with the CoinDesk 20 Index registering gains, particularly driven by notable increases of 4%-5% in coins like XRP, Solana’s SOL, and Cardano’s ADA.
“Bitcoin has demonstrated remarkable resilience,” stated David Hernandez, a crypto investment specialist at digital asset manager 21Shares. “After a brief dip below $82,000, it quickly rebounded, reinforcing its position as a macro hedge during times of economic stress.”
The potential decoupling of bitcoin from traditional markets—if it continues—could enhance its attractiveness to institutional investors seeking a safe haven amidst turbulent stock markets, Hernandez added.
In a note released last week, Geoff Kendrick, head of digital asset research at Standard Chartered Bank, expressed that while bitcoin often trades like a tech stock, it can also serve as a hedge during market panic, similar to the turmoil seen during the U.S. regional banking crisis in March 2023. “Over the last 36 hours, I believe we can also categorize bitcoin as a ‘US isolation’ hedge,” he stated in a Friday note.
The current bullish sentiment for bitcoin may also be attributed to corporations with BTC investment strategies, such as Michael Saylor’s initiative or potential bidding activities by GameStop, according to Sean Farrel, head of digital assets at Fundstrat. “I still believe this is largely due to the multibillion-dollar corporate treasury transactions taking place,” Farrell shared on X on Friday. “However, if we can sustain this strength through the weekend, we may need to reevaluate prior assumptions.”
