Why Is Bitcoin Price Up Despite US Stock Market Crash?

Despite the bloodbath on Wall Street this week, Bitcoin price and the broader crypto market have been showing massive strength, firmly holding around $83,000 and not being part of the volatility induced by Trump tariff wars. In the US stock market crash over the last two days, the Nasdaq Index has plunged over 2000 points, or 11.4% drop, the steepest fall since COVID-19 crash.

Bitcoin Price Resilience Confirms Hedge to US Stock Market?

This BTC resilience to the falling US equity market has got everyone discussing that the asset is now truly emerging as a hedge against the global market uncertainties. Since the Trump reciprocal tariffs kicked in on April 2 Liberation Day, Bitcoin has been the only asset in Green when compared to Gold, Silver, and Magnificent 7 stocks.

Returns Since Liberation Day:
BTC: +2.2%
Gold: -2.9%
SPY: -10.5%
QQQ: -11.2%

Magnificent Seven:
MSFT: -5.8%
GOOGL: -7.3%
AMZN: -12.8%
META: -13.6%
NVDA: -14.6%
TSLA: -15.3%
AAPL: -15.9%

— Ryan Rasmussen (@RasterlyRock) April 4, 2025

Despite the Bitcoin price facing rejection at $89,000, it has held firmly around the support of $82,000. As of press time, BTC is trading 0.6% up at $83,669 with a market cap of $1.660 trillion, with daily trading volumes up 42% to $42.5 billion. However, investors still remains hopeful of $90K BTC breakout from here.

Experts Have Mixed Opinion on BTC

Bitcoin appears to be showing signs of decoupling from traditional financial markets, according to prominent Bitcoin contributor and Blockstream CEO Adam Back.

In a recent post on X, Back suggested that the long-observed correlation between Bitcoin and traditional equities may have been artificially maintained. He speculated that market makers could be using Bitcoin’s liquidity conditions—particularly the shortage of fiat liquidity—to create an automatic correlation during U.S. market hours. However, Jeff Dorman, CIO of Arca institutional investment said:

“Everyone is talking about BTC strength in the face of a 2-day, 10%+ stock sell-off, even as gold falls. But this has nothing to do with stocks Bitcoin is NOT, & never has been, a market hedge. It is a gov’t/bank hedge. This selloff is due to a loss of trust in global gov’t”.

Where’s BTC Heading Next?

Despite the strong Bitcoin price performance recently, investors still need to be watchful of the on-chain metric here. Crypto analyst Ali Martinez has flagged a notable decline in Bitcoin’s exchange-related activity, suggesting a possible dip in investor sentiment and network engagement.

 

Another popular analyst Kyledoops stated: “Someone for sure bidding BTC here, either it’s a mega trap and going to mark down, or when equities bounce crypto will giga send. There’s a lack of edge here because its 50/50”. Our Bitcoin price prediction indicator shows BTC to continue the consolidation above $82,000 levels over the next month.

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