Bitcoin showed surprising resilience last week, holding steady above $80,000 even as the US stock market experienced a massive sell-off. This has sparked a debate about Bitcoin’s relationship with traditional assets.
Stocks Plummet, Bitcoin Holds Firm
The US stock market took a huge hit, losing a staggering $2.85 trillion on April 3rd and another $3.25 trillion by the end of the week – the worst two-day drop in five years. This was largely attributed to President Trump’s tariff increases, causing investors to flee stocks. However, Bitcoin bucked the trend, remaining stable and even seeing slight price increases. At the time of writing, Bitcoin sits at $83,205, up 1.3% for the week.
Crypto’s Unexpected Funding Boost
Adding to the surprise, cryptocurrency markets saw a massive influx of $5.4 billion in new investments on Friday alone. This occurred simultaneously with the stock market crash, suggesting a potential shift in investor sentiment towards Bitcoin during times of uncertainty. Even gold, which had recently hit a record high, experienced a sharp drop.
Experts React to Bitcoin’s Performance
Bitcoin’s unexpected strength didn’t go unnoticed. Bloomberg ETF analyst James Seyffart expressed his astonishment on X, stating he was “genuinely shocked” Bitcoin held above $80,000 during the broader market selloff. Adam Back, co-founder of Blockstream, suggested this could indicate Bitcoin is finally decoupling from traditional stock market movements, theorizing that market makers might be using Bitcoin’s limited liquidity to influence its correlation with stocks.
Companies Continue Buying Bitcoin
Bitcoin’s price stability might also be linked to continued institutional buying. Major companies are reportedly continuing to acquire Bitcoin, with GameStop notably declaring Bitcoin as a primary treasury asset and seeking to raise $1.3 billion for further purchases. This consistent institutional demand could be providing enough support to offset the pressure from the broader market downturn. This suggests growing confidence in Bitcoin as a store of value, even during market uncertainty.
