Bitcoin has moved in a different direction than U.S. stocks, which suggests that the connection between cryptocurrencies and equities is starting to fade. Gold has already taken the lead and has been moving independently from the stock market. Now, Bitcoin may be following in gold’s footsteps and charting its own course.
Bitcoin is often compared to tech stocks, but recent price movements indicate a shift. For example, while the Nasdaq 100 dropped more than 3%, BlackRock’s iShares Bitcoin Trust (IBIT) rose 0.46% during the same period. Another ETF, Strategy, also saw a 0.30% increase. These differences suggest that Bitcoin may be moving independently from the stock market.
During a speech by Federal Reserve Chair Jerome Powell, both Bitcoin and the Nasdaq fell. However, Bitcoin quickly recovered and climbed back above $84,000, while the Nasdaq continued to decline. Powell’s warnings about inflation and rising tariffs seemed to shake traditional markets, but Bitcoin didn’t react as sharply to the bad news.
Unlike stocks, Bitcoin doesn’t have the support of the Federal Reserve during big drops. This makes it different from traditional assets. Whether Powell’s stance on not intervening in a stock market crash will remain the same or if it was just meant to calm market expectations is yet to be seen.
Some experts believe that in the short term, Bitcoin will still move somewhat in line with U.S. stocks. However, over the long run, changes in policies or tariffs could push Bitcoin to grow on its own and become a reliable store of value like gold.
Analysts see similarities between Bitcoin and gold and believe that Bitcoin could soon follow gold’s path. Both assets have held up well despite economic uncertainty. If liquidity continues to rise, Bitcoin could climb even higher.
As gold continues to set records and Bitcoin breaks away from traditional markets, we may be entering a new era in the cryptocurrency world.
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