Bitcoin’s Steady Rise: Why Are Stocks Taking a Dive? 🤔💸

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So, Bitcoin is just hanging out above $95,550, right? Meanwhile, the American stock indices are doing their best impression of a sinking ship. What’s the deal with that? 🤷‍♂️

Last I checked, Bitcoin (BTC) was strutting its stuff above $96,550 on a Saturday morning, just a day after U.S. equities had their worst day of the year. I mean, come on! Talk about a bad hair day for stocks! 😅

Nasdaq 100, S&P 500, and SCHD retreats

The S&P 500 index took a nosedive of 1.71%. The tech-heavy Nasdaq 100? Oh, it fell by 2%, erasing 455 points like they were just bad memories. And let’s not forget the Dow Jones and the Russell 2000, which fell by 1.70% and 3%, respectively. It’s like a bad comedy routine! 🎭

And then there’s the Schwab US Dividend Equity ETF, which fell by a measly 0.5%. This ETF, known as SCHD, is supposed to track the big value stocks in the US. But right now, it’s just tracking disappointment! 😩

Tech stocks like Nvidia, Apple, Microsoft, and Meta Platforms? They’re lagging behind like they forgot to set their alarms. What’s going on here? 😳

The CNN Money fear and greed index is stuck in the fear zone at 35, while the crypto fear and greed index is feeling a bit greedy at 38. It’s like a game of emotional ping-pong! 🏓

Bitcoin and American equities are both retreating because of the looming market risks from President Trump’s tariffs and the Federal Reserve. It’s like a bad sitcom plot! 📺

This week’s Fed minutes revealed that most officials want to keep a tight grip on things since inflation is still high. The consumer price index is up to 3% and 3.3% in January. It’s like they’re trying to hit a target that keeps moving! 🎯

Bitcoin and its crypto buddies usually thrive when the Fed is feeling generous. Remember 2022? They crashed when rates went up, but now they’re trying to bounce back. It’s like watching a rubber ball! 🏀

Investors are sweating bullets over tariffs, which are likely to stir up more market chaos. Trump’s already slapped tariffs on Chinese imports, and now he’s eyeing Canada, Mexico, and even Europe. It’s like a game of economic whack-a-mole! 🥴

Higher tariffs could lead to stagflation, where high inflation meets slow growth. It’s a tough spot because raising rates to curb inflation slows growth, while cutting rates just makes inflation worse. It’s a real pickle! 🥒

Bitcoin price chart points to a rebound

But hey, there’s a silver lining! Bitcoin might just be gearing up for a comeback. The weekly chart is showing a bullish flag pattern. It’s like a tall vertical line saying, “I’m not done yet!” 🚩

Before that, Bitcoin formed a cup-and-handle pattern. This cup is about 78% deep, which means the BTC price target could be around $121,590. It’s like measuring the distance to the moon! 🌕

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2025-02-22 18:19