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- Bitcoin shows resilience amid U.S. tariffs, maintaining stability while the stock market faces historic declines.
- Despite the market turmoil, Bitcoin’s 2.2% gain suggests a possible recovery as stocks continue to fall.
- The early rebound in cryptocurrency hints at a potential market shift, but risks remain if stocks keep declining.
Bitcoin has demonstrated considerable strength as the stock market falls due to the tariffs imposed by the United States across most of its trading partners. Joe Burnett, the Director of Market Research at the crypto financial firm Unchained, speaks about the importance of this trend. As the US stocks have seen some of the worst performances in years, up to now the Bitcoin (BTC) continues to remain stable to return a positive outcome to institutional investment.
On April 4, the Dow Jones Industrial Average had fallen more than 2,200 points, a day after shedding 1,679 points. This was the worst two-day performance in the index’s history, and many equity investors must have felt uneasy approaching the weekend.
Bitcoin’s Resilient Performance
The cryptocurrency gave out a potential signal of recovery by gaining 2.2%. Joe Burnett pointed out that currently, Bitcoin’s movement looks similar to the situation in 2020 when BTC was the first to start the market recovery. Burnett underlined that, while the situation in the traditional markets remains rather volatile, Bitcoin remains stable.
Recalling March 2020, bitcoin rapidly bottomed and recovered first (before U.S. equities), a pattern potentially repeating today as bitcoin hasn’t made new lows since March 11th.
Bitcoin is highly liquid, and this makes it the first to be dump whenever there is a squeeze in liquidity. Burnett pointed out that BTC always has big dips, and at the same time, it rises much faster than traditional equities. It also indicates that the lows on the stock market are soon expected, since Bitcoin looked to bounce shortly after its low, which may be signaling a shift in the market.
Market Reversal Expectations Grow
This is further supported by the AAII investor sentiment survey that has declined to 19.11% on March 13, the lowest level amid the pandemic . Such a massively bearish sentiment is typical of investors before the market reversal, and Burnett assumes that an equivalent turn around is awaiting both equities and Bitcoin.
Nevertheless, in Burnett’s opinion, Bitcoin is not yet completely safe. Nonetheless, if the market sells off sharply in the coming weeks, Bitcoin will also suffer setbacks. Despite this, cryptocurrency remains stable, keeping up to that point on the performance of the whole market.
The US market remains volatile, while Bitcoin proves to be more resistant and has increased in value during the fluctuations of the market. Joe Burnett points to the fact that more volatility in traditional markets may affect the cryptocurrency in the future.
