• U.S. stocks took a $5.4 trillion hit just two days after President Trump announced new tariffs.
• Interestingly, Bitcoin only dipped by 6%, while the tech-heavy Nasdaq plummeted a staggering 11%.

Amidst a broader market storm, Bitcoin and the crypto world are showing remarkable resilience as traditional U.S. equities get hammered. President Trump’s recent tariff announcements have triggered a massive $5.4 trillion selloff in the stock market in a mere 48 hours. The S&P 500 has sunk to its lowest point in 11 months, and the Nasdaq 100 has officially entered bear market territory – a worrying sign for many investors.

However, even as panic grips Wall Street, Bitcoin only experienced a modest 6% drop, in stark contrast to the Nasdaq’s deep 11% dive. According to data from TheTie, the total cryptocurrency market capitalization currently sits at a robust $2.65 trillion. Looking at the past day, Bitcoin saw a slight 0.70% decrease, settling at $82,962. On the other hand, the CD20 index actually climbed by 0.2%, perhaps hinting at some underlying confidence in the crypto space.

Bitcoin (BTC) as a Hedge

The performance of crypto-related stocks has been a mixed bag. Bitcoin mining company MARA Holdings saw a slight uptick of 0.6%, and Core Scientific (CORZ) edged up by 0.4%. MicroStrategy (MSTR), known for its massive Bitcoin holdings of 528,185 BTC, enjoyed a more significant 4% rise. Comparatively, the Nasdaq took a 5.8% nosedive on the same day, highlighting how Bitcoin-related assets are outperforming traditional tech stocks during this downturn.

Geoffrey Kendrick from Standard Chartered Bank suggests that Bitcoin is emerging as a viable hedge against the turbulence in traditional financial markets. He further proposed that Bitcoin is increasingly becoming a “U.S. isolation” hedge, which is particularly interesting in the current global climate. In a note distributed on April 4th, Kendrick pointed to a chart indicating that among the “Magnificent 7” tech giants, only Microsoft managed to beat Bitcoin’s performance during this market dip.

The timing of Bitcoin’s strength seems almost symbolic. April 5th is recognized by many as Satoshi Nakamoto’s birthday – the date listed on their P2P Foundation profile. Intriguingly, many believe this date was intentionally chosen to commemorate Executive Order 6102, enacted in 1933, which compelled Americans to surrender their gold holdings to the government. Fast forward to today, and Bitcoin appears to be stepping into the role of a modern, digital version of that very same safe-haven asset.

Since the start of the year, U.S. equities have collectively lost over $11 trillion in value. Trump’s latest tariffs are adding fuel to the fire, reigniting global trade tensions. Concerns about persistent inflation and a potential recession are driving investors to search for alternative investment avenues. Adding a layer of caution, Arthur Hayes, co-founder of BitMEX, has cautioned that April could be a particularly challenging month for Bitcoin, citing factors like decreasing market liquidity, the impact of tax season, and central banks’ hawkish stances.

And yet, against these headwinds, Bitcoin is defying expectations. It’s behaving less like a risky investment and more like a safe haven. While Wall Street is experiencing significant jitters, Bitcoin is maintaining its ground. Its digital nature, borderless reach, and speed are proving to be advantages, and unlike traditional gold, it seems to actually thrive amidst market uncertainty.

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