Bitcoin is currently trading at $79,150, showing just 1.8% increase in the last 24 hours, but has fallen by around 4% over the past week. The recent price movement comes amidst the global trade tensions and rising new tariffs announced by President Donald Trump. These tariffs targeting several countries have caused wider market volatility. The stock is hit hard when the S&P 500 drops 12% between April 2nd and April 8th, but the Vitocoin drop over the same period is not so severe. This has led analysts to reevaluate the relationship between Bitcoin and the traditional market.
Zach Pandle, director of research at Greyscale, said it reflects an increased independence from traditional financial markets despite a lower decline than expected for Bitcoin. Bitcoin is usually about three times more volatile than the S&P 500. On that scale, a 12% drop in stock should cause a 36% drop in Bitcoin. Instead, cryptocurrency fell by about a third of its estimates. Pandoll suggested that tariffs are a direct shock to stocks rather than Bitcoin, and that the volatility in the traditional market reflected in the VIX index is now comparable to that of the Bitcoin options market.
Grayscale argues that current macroeconomic conditions (higher and lower inflation, slower GDP, and geopolitical uncertainty) can create an environment that favors assets such as Bitcoin. In parallel with the stagflation period of the 1970s, the company points out that gold is experiencing a surge in value while stocks and bonds are performing poorly. Bitcoin, often referred to as “digital gold,” could still play a similar role despite the lack of historical data gold has over the decades.
The ongoing trade war is also affecting the currency market. The weakening of the US dollar caused by changing tariffs and global partnerships could encourage countries to diversify their reserve assets. Iran is currently the only country whose central banks list Bitcoin as a reserve asset, but some sovereign wealth funds have already invested in it. The report states that the US is investigating the creation of strategic Bitcoin reserves, highlighting growing interest in Bitcoin at the state level.
Solo Bitcoin Miner is also attracting attention. The recent block was successfully mined by individuals, earning a minor 3.125 BTC (approximately $259,637 at the time), highlighting the occasional success of small participants what they can still achieve in the network.
Bitcoin has temporarily surged above $82,000 after a 90-day tariff suspension in non-retaliation countries, but is 26% below its all-time high of $109,114. Analysts are cautious. Nic Puckrin of the Coin Bureau said temporary relief would not resolve the underlying trade dispute. Short-term sentiment is vulnerable, but long-term trust in Bitcoin remains strong.