Bitcoin Stays Steady as Trump’s Tariffs Make Stocks Dizzy

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In a world where financial instability is as common as rain in Discworld, Bitcoin (BTC) is gaining renewed attention as a hedge against the kind of market chaos that only a $5 trillion sell-off can bring. While the S&P 500 took a dizzying dive, wiping $5 trillion from its market cap in just two days, Bitcoin managed to hold its ground like a stubborn dwarf in a mud bath. 🤑

According to a report by Reuters, the S&P 500’s $5 trillion loss over two days is the largest drop in its history, surpassing even the $3.3 trillion decline seen in March 2020 during the early days of the COVID-19 pandemic. All this after US President Donald Trump announced his reciprocal import tariffs on April 2, aiming to reduce the country’s $1.2 trillion trade deficit and boost domestic manufacturing. 🇺🇸

Marin Kazmierczak, the co-founder and COO of RedStone blockchain oracle firm, noted that Bitcoin’s dip after the tariff announcement was a mere blip compared to the traditional markets, signaling Bitcoin’s growing maturity as a global asset. “What we’re potentially witnessing is an evolution in Bitcoin’s market positioning,” he told CryptoMoon. “Historically, Bitcoin has been strongly correlated with risk assets during macro shocks, but this divergence might signal an emerging perception shift among investors.”

“Historically, Bitcoin has been strongly correlated with risk assets during macro shocks, but this divergence might signal an emerging perception shift among investors.”

“Bitcoin’s fixed supply architecture inherently contrasts with fiat currencies that may face inflationary pressure under tariff-driven economic changes,” he added, as if explaining why a vacuum cleaner never sucks up a cat. 😼

While stocks plunged, Bitcoin dipped just 3.7% over the same two-day period, trading at around $83,600 as of April 5, according to TradingView data. 📊

“BTC shows its worth, staying above its $82,000 key support level — a sign that structural demand remains intact even amid forced selling and elevated volatility,” Nexo dispatch analyst Iliya Kalchev told CryptoMoon, sounding as optimistic as a troll in a sunny meadow. 🌞

Bitcoin May Shine as “Digital Gold” Amid Tariff Talks

Despite Bitcoin’s decoupling from traditional stocks, its initial price dip suggests that some investors still see it as a risk asset, according to James Wo, the founder and CEO of venture capital firm DFG. “With Bitcoin ETFs enabling greater institutional exposure, it is now even more influenced by macroeconomic trends,” Wo told CryptoMoon. “However, if Bitcoin remains resilient amid ongoing uncertainty, its hard-capped supply and decentralized nature could not only strengthen its ‘digital gold’ narrative but also position it as an even more reliable store of value.”

“However, if Bitcoin remains resilient amid ongoing uncertainty, its hard-capped supply and decentralized nature could not only strengthen its ‘digital gold’ narrative but also position it as an even more reliable store of value.”

Despite the current lack of momentum, analysts are confident in Bitcoin’s upside potential for the rest of 2025. The growing money supply could push Bitcoin’s price above $132,000 by the end of the year, according to estimates from Jamie Coutts, chief crypto analyst at Real Vision. 🚀

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2025-04-05 15:00