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Why Is Bitcoin Mirroring the Stock Market Crash? Michael Saylor Explains

Published by
Vignesh S G

Since February, when Donald Trump announced his aggressive tariff plan, the U.S. economy has been on shaky ground. Stocks have tumbled, with the S&P 500 down 9.5% and the Nasdaq 100 dropping over 12%. But the real shock? Bitcoin—often seen as a hedge against financial uncertainty—has followed the same downward path, losing nearly 18.5%. Meanwhile, gold, the traditional safe haven, has surged by 10.47%.

This unusual market movement has sparked a big question: Is Bitcoin truly an independent asset, or is it more connected to traditional markets than we thought? Michael Saylor , a longtime Bitcoin advocate, has a strong opinion on this – and his reasoning might just change how you see the crypto market.

Let’s break it down.

Is Bitcoin Really Independent?

Bitcoin saw major gains after political shifts in the U.S. On November 5, 2024, it was trading at $67,772.62. Over the next two weeks, from November 5 to 22, it surged by over 45.8%. By December 17, it hit a yearly high of $108,389.70.

In early 2025, Bitcoin fluctuated between $89,310 and $106,395.41. Then, on January 20, it reached an all-time high of $109,000.

However, after Donald Trump took office and introduced his tariff policy, Bitcoin lost momentum. Since February, it has dropped more than 18.49%, following the decline of the U.S. stock market. This has raised concerns about its ability to act as a hedge against financial instability.

Michael Saylor dismisses claims that Bitcoin is losing its status as an independent asset. He argues that the recent connection between Bitcoin and stocks is only a short-term reaction.

He points out that Bitcoin’s high liquidity and 24/7 availability make it an easy asset to sell when markets crash. In times of panic, investors sell what they can, and Bitcoin is always available for trading.

However, he insists that this temporary trend does not mean Bitcoin will always follow stock market movements. Long term, he believes Bitcoin will remain a non-correlated asset, independent of traditional markets.

Bitcoin vs. Stocks and Gold: The Bigger Picture

Looking at the broader picture, Bitcoin’s long-term performance tells a different story. In 2024, Bitcoin’s value skyrocketed by 121.1%, far outpacing traditional assets. The S&P 500 gained only 24.05%, while the Nasdaq 100 rose by 27.1%. Even gold, often considered the safest investment, increased by just 27.54%.

As discussions continue about Bitcoin’s market behavior, one thing is certain: short-term volatility does not define its long-term potential. While it may currently move in sync with U.S. stocks, history suggests Bitcoin has the ability to break free and prove itself as a truly independent financial asset.

FAQs

How have U.S. tariffs impacted Bitcoin’s price?

Bitcoin dropped 18.49% since the tariff announcement, reflecting market-wide risk aversion, but experts see this as a temporary trend.

Will Bitcoin recover after the recent drop?

If market uncertainty eases, Bitcoin could rebound, with analysts eyeing $2,400 as the next key resistance level.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

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