Bitcoin (BTC-USD) surged by $88,000 on Monday, with inventory tanking, so Wall Street strategists noted that the world’s biggest cryptocurrency outweighs the Nasdaq composite (^Ixic) against the backdrop of the trade war.
“Bitcoin’s outperformance on NASDAQ has collided with everything through the US tariff crisis. Bitcoin is falling 10% to YTD vs. 16% YTD.” “We hope that Bitcoin and the broader global blockchain assets will play a critical role in the trend of de-easing.”
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Chhugani hopes Bitcoin will benefit from the Trump administration’s efforts to build a regulatory framework around Crypto, including “Stablecoins.”
“Politically, I believe that the current US government sees it as an agent for “Main Street” that focuses on financial innovation (through stablecoins, for example), beyond “large banks,” Chhugani writes.
Bernstein analysts highlight how banks are carefully considering stablecoin technology for cross-border payments, interbank settlements, and other companies such as crypto custody, wealth management, transactions, and investment banks.
Even Federal Reserve Chairman Jerome Powell said Stubblecoin “may have a fairly wide appeal” as regulations surrounding digital assets are being introduced in Congress.
Bitcoin surged over pro-cryptic policy expectations shortly after Trump’s White House victory in November, pulling back after winning more than $106,000 in January, a record high.
US assets have been sold in recent weeks, but Bitcoin is primarily held above the $80,000 level.
“Bitcoin ETFs had limited sales of nearly $4 billion in February/March, but sales appear to be exhausted in April amid the tariff crisis. Increased institutional retention within the ETF has resulted in more resilient capital within the Bitcoin ETF,” writes Chhugani.
If the US purchases Bitcoin to strengthen its strategic reserves beyond the seized assets currently held by the government, it will be a positive catalyst, according to analyst at Bernstein.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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