#BTCvsMarkets
Former President Donald Trump’s new tariff plans have sparked major market volatility, revealing a notable divergence between Bitcoin and traditional equities. Here's a streamlined breakdown of Bitcoin’s relative performance and what it means going forward.
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1. Market Reaction Snapshot
Stocks Tumble:
U.S. markets saw a dramatic sell-off, with the S&P 500 losing $3.5 trillion on April 4 and $5 trillion across two days—the worst since March 2020. Tech stocks like Apple and Tesla led the drop.
Bitcoin’s Dip and Recovery:
Bitcoin surged to $88,000 before falling to $81,500–$82,000 post-announcement, but quickly rebounded to $84,720, outperforming equities during the crash.
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2. Bitcoin’s Decoupling?
Bitcoin declined just 3.7% versus stocks’ 10%, holding above key support and suggesting growing perception as a macro hedge.
Unlike 2018’s trade war, Bitcoin didn’t move in lockstep with stocks—hinting at evolving investor confidence in its unique fundamentals.
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3. Institutional Flows & Macro Forces
ETF Inflows: Spot Bitcoin ETFs, especially BlackRock’s, saw $218 million in inflows amid the chaos.
Fed Warning: Powell flagged tariffs as inflationary, potentially increasing Bitcoin’s appeal.
Regulatory Overhang: Institutional growth is limited by unclear crypto regulation, keeping markets retail-heavy.
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4. “Digital Gold” Narrative Strengthens
Treasury Secretary Scott Bessent called Bitcoin a growing “store of value.”
While gold is up 15% YTD, Bitcoin’s rebound reinforces its role as a modern safe haven.
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5. Looking Ahead
Target Price: Analysts project Bitcoin could hit $132,000 by late 2025 if monetary easing and institutional interest continue.
Risks: Ongoing trade tensions and market volatility could challenge Bitcoin’s resilience in the short term.
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Quick Takeaways
Bitcoin held up better than stocks, fueling its hedge narrative.
Institutional flows and inflation concerns are key bullish drivers.
Long-term potential remains strong, but near-term risks persist.
