Tariffs-Proof Assets as Markets Tumble

Tariffs-Proof Assets as Markets Tumble

finbold.com
April 6, 2025 by Jhon E. Bermúdez
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Okay, I understand. Please find the rewritten content below, maintaining all HTML tags, original tone, style, and intent while improving clarity and flow to make the text more natural and engaging: <div> <p class="paragraph">This week was a rough one for U.S. stocks, with President Trump's newly announced tariffs triggering a significant market downturn. But amidst
Tariffs-Proof-Assets-as-Markets-Tumble.jpg


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<div>
    <p class="paragraph">This week was a rough one for U.S. stocks, with President Trump's newly announced tariffs triggering a significant market downturn.  But amidst all the red, one asset class stood its ground surprisingly well: Bitcoin (BTC).</p>

<p class="paragraph">What's truly interesting is that while major stock indices saw investors pulling their capital out, Bitcoin demonstrated remarkable resilience, a trend mirrored across the wider cryptocurrency market.  It seems crypto held steady while traditional markets reacted to the tariff news.</p>

<p class="paragraph">Looking at the numbers, Bitcoin was trading at $82,427 as of writing, showing a very slight dip of just 0.49% over the last week.  Zooming in to the last 24 hours, the price has barely budged, easing back by a mere 0.5%.</p>

<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc9mvIkTz8oDPkFcrOQhf7jfLBzRs2G1215N3pSZk3Y7iEa295D-6-UM0Q6pHTSVebhHi0xL3LRcm45z9jr9ytd6DE_htbus1WTPVBRoKBHWjUqugW2-wrCVUOewcewtwBvY_PK6g?key=7ilkCmCWWvBJ7WeOt5bq7Jrf" alt=""/><figcaption class="wp-element-caption"><em>Bitcoin seven-day price chart. Source: Finbold</em></figcaption></figure>

<p class="paragraph">To really grasp the divergence, consider how traditional markets performed this past week. The S&amp;P 500 took an 8.21% hit, the Dow Jones slumped by 7.4%, and the tech-heavy Nasdaq took an 8.4% tumble.  It paints a stark contrast to Bitcoin's stability.</p>

<p class="paragraph">Throughout the week, the leading cryptocurrency displayed surprising stability, even briefly spiking near $88,000 on April 2nd before settling back down.  Despite this minor fluctuation, Bitcoin has largely traded within a steady range and proven to be quite robust, hinting at a potential separation from the broader market's anxieties.</p>

<p class="paragraph">Experts on Wall Street are cautioning that Trump's tariffs could reignite inflation, which could put further pressure on the already shaky stock market.</p>

<h2 class="wp-block-heading" id="h-why-bitcoin-defied-tariffs-sell-offs-nbsp">Why Bitcoin defied tariffs sell-offs </h2>

<p class="paragraph">So, what explains Bitcoin's ability to shrug off the tariff-induced market chaos?  Several factors could be at play.  Trump's tariffs, intended to shrink the trade deficit, have sparked concerns about retaliatory actions from major trading partners. This, in turn, raises the specter of a weaker dollar, potentially driving investors towards Bitcoin as a "digital gold" alternative.</p>

<p class="paragraph">We're already seeing signs of this "flight to safety."  Gold itself has rocketed to record highs, breaching $3,000, signaling a wider trend of investors seeking refuge in assets outside of traditional fiat currencies.</p>

<p class="paragraph">However, it's important to remember Bitcoin's resilience isn't a guaranteed, always-on feature.  Earlier in the week, the original cryptocurrency did slide from its $88,000 peak to $81,200, indicating some initial risk aversion.  But its quick bounce back suggests a changing dynamic in how investors are reacting to market uncertainties.</p>

<p class="paragraph">Analysts point out that while tariffs might fuel inflation, the crypto market has remained relatively calm, likely because Bitcoin's performance isn't strongly tied to sectors directly impacted by tariffs, like manufacturing and technology.</p>

<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">There are no tariffs on Bitcoin.</p>— Michael Saylor⚡️ (@saylor) <a href="https://twitter.com/saylor/status/1907775832262652046?ref_src=twsrc%5Etfw">April 3, 2025</a>
</blockquote>

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<p class="paragraph">The actual rollout of specific policy details on "Liberation Day" may have also calmed nerves somewhat.  Some institutional investors, like Strategy (NASDAQ: MSTR), apparently viewed the dip as a buying opportunity, further supporting Bitcoin's price.</p>

<h2 class="wp-block-heading" id="h-what-next-for-bitcoin-nbsp">What next for Bitcoin </h2>

<p class="paragraph">Looking ahead, while the stock market remains uncertain, Bitcoin seems to be betting on continued upward momentum.</p>

<p class="paragraph">This bullish outlook is supported by on-chain <a href="https://x.com/ali_charts/status/1908869549631459581">data shared</a> by crypto analyst Ali Martinez on April 6th. He highlighted that over 91,900 BTC have been withdrawn from <a href="https://x.com/ali_charts/status/1908869549631459581" target="_blank" rel="noreferrer noopener">cryptocurrency exchanges</a> in just the past month.</p>

<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfElpb3Xfc03uBGKhe3na_AY04KLEOOeZa05olSrHNaySWwmfJentzBM4BH4NrAEciGtZy6ZOjeu-oaMYSp9bT26GxPbqaumkxE88UrGFzusSjSPTI8f9S01KkXGKF3NqzQLC3T5Q?key=7ilkCmCWWvBJ7WeOt5bq7Jrf" alt=""/><figcaption class="wp-element-caption"><em>Bitcoin balance on exchanges. Source: Glassnode/Ali_charts</em></figcaption></figure>

<p class="paragraph">This kind of outflow is often seen as a positive sign, suggesting growing investor confidence and a long-term bullish perspective.  Traders typically move Bitcoin to "cold storage" (offline wallets) when they plan to hold onto it for the long haul rather than sell.  Some analysts are even predicting Bitcoin could reach $150,000.</p>

<p class="paragraph"><strong><em>Featured image via Shutterstock</em></strong></p>  </div><script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>

Key improvements made for humanization and engagement:

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Source: finbold.com