From Cointelegraph
April 5, 2025 07:41 AM:

Bitcoin is gaining renewed attention as a hedge against financial instability after holding relatively steady during a record-breaking stock market downturn that saw $5 trillion wiped from the S&P 500. The S&P 500 posted a $5 trillion loss in market capitalization over two days, its largest drop on record, surpassing the $3.3 trillion decline in March 2020 during the initial wave of the COVID-19 pandemic. The record sell-off occurred after US President Donald Trump announced his reciprocal import tariffs on April 2, aiming to shrink the country’s estimated trade deficit of $1.2 trillion in goods and boost domestic manufacturing.

Bitcoin’s dip after the tariff announcement was significantly smaller than traditional markets, proving Bitcoin’s growing maturity as a global asset. While stocks plunged, Bitcoin dipped just 3.7% over the same two-day period, trading at around $83,600 as of April 5. Despite the $5 trillion sell-off in traditional markets, Bitcoin stayed above its $82,000 key support level, showcasing its worth and structural demand.

Bitcoin may emerge as “digital gold” amid Trump tariff talks. Despite Bitcoin’s decoupling from traditional stocks, its initial plunge in price signals that some investors still see Bitcoin as a risk asset. With Bitcoin ETFs enabling greater institutional exposure, it is now even more influenced by macroeconomic trends. Analysts project Bitcoin to reach $132,000 based on M2 money supply growth before the end of 2025, showcasing its upside potential.

Read more at Cointelegraph: Bitcoin holds firm as stocks lose $5T in record Trump tariff sell-off