The stock market tariff tantrum of the past few weeks has seen the Nasdaq 100 and S&P 500 give up all their gains since the early November election victory of Donald Trump, even as Bitcoin (BTC) remains in positive territory.
Both equity gauges are now more than 2% lower, while Bitcoin is up over 20% in the same time frame. This divergence illustrates a significant shift in market sentiment and asset performance.
Market leader Nvidia (NVDA), whose chips are in demand for applications in artificial intelligence, has suffered a decline of more than 20% since Trump’s triumph. Conversely, Meta Platforms (META) stands out as a beacon of resilience among the so-called magnificent seven technology companies, gaining about 10% during this volatile period.
Meanwhile, Bitcoin buyer Strategy (MSTR) has experienced a staggering drop of over 50% from its all-time high in November. However, it is worth noting that it remains up 20% since the election, highlighting Bitcoin’s relative strength compared to traditional equities.
While Bitcoin enthusiasts are less than pleased with the recent price performance—especially considering the world’s largest cryptocurrency has slumped approximately 20% from its peak of $109,000 the day before Trump’s inauguration on January 20—the current price of $88,000 still reflects a notable increase of roughly 20% from its level just prior to the November election.
In conclusion, the stark contrast between the performance of traditional stocks and cryptocurrencies invites both caution and curiosity among investors. While the equity markets grapple with uncertainty, Bitcoin may serve as an alternative store of value amid the turmoil.
