While the US stock market is on fire, Bitcoin has experienced a spectacular breakout, forcing a series of investors betting on the bearish scenario (short) to "surrender" and incur losses of tens of millions of USD. What is happening with Bitcoin and why is there a strange decoupling between crypto and traditional stocks?
Bitcoin surges unexpectedly amid market chaos.
At the beginning of the week, Bitcoin's price briefly exceeded 88,200 USD, the highest level since late March. Although it later adjusted slightly, Bitcoin still held above the 86,800 USD range, up about 2.7% in 24 hours, according to data from CoinGecko.
This development occurred at the same time as major US stock indices like the S&P 500, Nasdaq, and Dow Jones all plummeted over 3% – a clear signal indicating that panic sentiment is spreading across the traditional market.
However, #bitcoin seems to be breaking away from its close correlation with the stock market, behaving like a safe-haven asset amid crises, something rarely seen in the crypto world before.
Over 97 million USD in short positions were "erased" in just 24 hours.
The strong price increase of Bitcoin has triggered a wave of "liquidation" with a total value of over 97 million USD solely for Bitcoin – according to data from CoinGlass.
If considering the entire crypto market, the number of short positions liquidated reached nearly 180 million USD, reflecting investors' surprise at the market's reversal trend.
Short positions $ETH – the second largest coin – are also heavily affected, with over 26 million USD liquidated in the same period.
Ethereum is "stagnating", while Solana and Dogecoin are experiencing slight fluctuations.
While Bitcoin shines, Ethereum is still trading around 1,624 USD, almost flat over the past 24 hours. However, looking more broadly, ETH has fallen over 20% in the past month, while Bitcoin and Solana have risen.
$SOL today dropped slightly over 1%, while Dogecoin rose 2.4% and $XRP increased slightly by 1%, indicating a clear divergence trend among altcoins amid strong market fluctuations.
Trump causes a storm: Calls Fed Chair a "failure", threatens replacement.
This wave of volatility is believed to have originated from shocking statements by President Donald Trump. In his latest speech, he criticized Federal Reserve Chair Jerome Powell as a "big failure" for not quickly lowering interest rates to support the economy.
Furthermore, #TRUMP even threatened to replace Powell, an unprecedented action in modern history – raising significant concerns for global investors. Many experts warn that this move could ignite political and financial market risks, prompting investors to flee from stocks and seek alternative assets like gold and Bitcoin.
Gold hits a new peak, but Bitcoin is the center of attention.
At the same time as Bitcoin's rise, gold prices continue to break records and trade above 3,420 USD/oz, indicating that capital is seeking shelter amid the financial storm.
However, it is noteworthy that Bitcoin – which is considered a risky asset – is showing signs of behaving like gold, becoming an alternative choice for investors in a highly unstable environment.
Could this be a true "transformation" of the crypto market?
In the context of the Trump administration increasing pressure on China with new tariffs, while the stock market is shaken by macroeconomic instability, Bitcoin has become a rare standout name recording a positive trend.
The strong recovery of BTC and the wiping out of hundreds of millions of USD in short positions indicate that market sentiment is changing. Crypto is no longer simply a "risky asset", but is gradually proving its role as a financial safe haven during times of volatility.
Connecting with Binance users and the crypto market.
If this trend of "decoupling" continues, Binance users may witness stronger growth of Bitcoin and other digital assets, despite the decline in global stock markets.
Leveraged trading (margin) or futures need to be considered carefully, especially when the market is highly volatile and short positions are being liquidated en masse.
Long-term investors may watch to see if Bitcoin maintains its new role as a crisis asset, similar to gold.
⚠️ Risk warning:
The cryptocurrency market always carries strong volatility and high risk. The above information is not investment advice. Users should conduct thorough research, consider personal financial goals, and manage risks appropriately when participating in the crypto market.