Bitcoin surprised many this week by moving in a different direction than U.S. stocks. This could signal that the once-strong connection between cryptocurrencies and equities is starting to fade. Gold has already taken the lead, moving independently and setting 12 daily records this year.
Could Bitcoin be next in line to stand out on its own? We’ll have to wait and see.
Bitcoin is often compared to tech stocks, especially the Nasdaq 100. But recent price movements suggest a shift. For example, BlackRock’s iShares Bitcoin Trust (IBIT), which trades during U.S. market hours, rose 0.46% on Wednesday—even as the Nasdaq 100 dropped more than 3% in one of its worst days in recent history.
Another ETF, Strategy, also rose 0.30% the same day, while all seven of the ‘Magnificent Seven’ tech stocks closed in the red. These differences show that Bitcoin may be starting to move independently from the stock market.
Both Bitcoin and the Nasdaq fell during a speech by Federal Reserve Chair Jerome Powell. But while the Nasdaq kept falling, Bitcoin quickly recovered and climbed back above $84,000. Powell’s warnings about inflation and rising tariffs clearly shook traditional markets, but Bitcoin didn’t react as sharply to the bad news.
The markets were especially unsettled when Powell was asked if the Fed would step in to help during a stock market crash. His answer: a clear “no.”
Say Goodbye to the Safety Net
Stocks can sometimes rely on the Federal Reserve to step in during big drops. Bitcoin, however, is different. As a bearer asset, it doesn’t have that kind of support. Whether Powell meant to stick with that tough stance or was just trying to calm market expectations isn’t clear yet.
Can Bitcoin Become a True Store of Value?
Dylan Bane, an analyst at crypto research firm Messari, believes that in the short term, Bitcoin will still move somewhat in line with U.S. stocks, especially when policies or tariffs change. But over the long run, he thinks those same changes could push Bitcoin to grow on its own—and possibly become a reliable store of value like gold.
Some experts think Bitcoin could soon follow gold’s path. Crypto trader Cryptollica points out that both assets are showing similar price patterns and believes a breakout is coming, possibly pushing Bitcoin to $155,000.
Data firm Glassnode also notes that both Bitcoin and gold have held up well despite economic uncertainty. Their resilience is becoming more obvious as global financial conditions get tougher.
Historically, both gold and Bitcoin have reacted strongly to rising money supply. Gold recently hit a record high of $3,350. If liquidity continues to rise, Bitcoin could also climb higher.
Glassnode adds that Bitcoin and gold are gaining traction as “neutral reserve assets” across the world. Bitcoin is still 30% below its all-time high, but that’s considered a fairly small drop by crypto standards.
As gold continues to set records and Bitcoin begins to break away from traditional markets, we may be entering a new era.
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