After a frustrating few weeks in which Bitcoin (BTC) prices seemed to move tick for tick with the Nasdaq, the world’s largest cryptocurrency is showing signs of charting its own course as stock prices experience significant declines.
The Nasdaq followed up its 6% tumble on Thursday with another 5% drop halfway through the day on Friday. In contrast, Bitcoin has held steady at around $83,000, reflecting a 1% increase over the past 24 hours and a modest 3.5% drop since President Trump announced his tariff package on Wednesday evening.
Notably, Bitcoin is greatly outperforming crypto-related stocks such as Coinbase (COIN), MicroStrategy (MSTR), Semler Scientific (SMLR), and various mining companies, all of which have experienced double-digit percentage declines over the past two sessions.
The broader cryptocurrency market is also displaying strength, with the CoinDesk 20 Index climbing higher, buoyed by 4% to 5% gains in XRP, Solana’s SOL, and Cardano’s ADA.
David Hernandez, a crypto investment specialist at digital asset manager 21Shares, commented, “Bitcoin has shown impressive resilience. After briefly dipping below $82,000, it rebounded quickly, reinforcing its status as a macro hedge in times of economic stress.” This decoupling from stock markets, if it persists, may enhance Bitcoin’s appeal among institutional investors seeking refuge from unstable equity markets, he adds.
Geoff Kendrick, head of digital asset research at Standard Chartered Bank, noted last week that while Bitcoin typically trades like a tech stock, it often serves as a hedge during market panic events, such as the U.S. regional banking crisis in March 2023. “Over the last 36 hours, I think we can also add ‘US isolation’ hedge to the list of Bitcoin uses,” he remarked in a note on Friday.
However, this newfound strength in Bitcoin’s price might also be attributed to companies with BTC investment strategies, such as Michael Saylor’s initiative or GameStop’s bidding activity, as highlighted by Sean Farrell, head of digital assets at Fundstrat. Farrell suggested on social media, “Still in the camp that this is due to the multibillion-dollar corporate treasury TWAP happening. But if we maintain this strength through the weekend, we’re going to have to revisit those priors.”
