(Bloomberg) – Bitcoin (BTC-USD) has advanced optimism that its biggest digital tokens are finally free from the long-standing trend of moving in parallel with US tech stocks.
Most of them read from Bloomberg
Following an announcement that it wiped out tariffs on US President Donald Trump’s geopolitical allies and rivals, Bitcoin has raised nearly 20% from its low on April 7th after temporarily succumbing to the sale of risk assets. In doing so, they began trading gold similar to gold, a market standout asset caught up in tariff uncertainty.
UTC as of 4:14pm. Market open.
Decoupling from US assets is largely driven by a sluggish dollar, but it offers some relief to the code bull after Trump’s first three months of power didn’t set fire to the rally that many had expected. Even after the profits in April, Bitcoin is far below where Trump returned to the White House.
Trump’s attacks over the past week further told investors in Federal Reserve Chairman Jerome Powell, who accused him of being too late to cut interest rates, burning the narrative that the era of “exceptionism” that drove a rolking stock market is over.
“One of the possible impacts of US decoupling is the long-term revisiting Bitcoin Bull Case as a valuable store,” said Augustine Fan, partner at Signalplus at Crypto Trading Platform. “We have been criticizing Bitcoin as a representative of the Nasdaq for the past year, and have finally begun to show signs of decoupling.”
Bitcoin won as much as 2.9% and traded for around $90,000 at 9:20am in New York on Tuesday. The Dollar Spot Index recovered slightly after falling to a low since Monday’s late 2023, but gold went above $3,500 per ounce for the first time before replenishing some profits. The NASDAQ 100 Index was ready for rebound after Monday’s defeat.
“If Bitcoin continues to trade like gold than tech stocks, the decoupling story will gain momentum,” said Richard Galvin, co-founder of Sydney-based Crypto Hedge Fund DACM.
In another indication of emotional change, the US list Bitcoin ETF won a total of $381 million on Monday. The largest inflow since January 30th. Bitcoin’s move above $88,800 could further increase the $92,000-$94,000 range, according to Delta’s research analysis Riya Sehgal.
Most of them read from Bloomberg BusinessWeek