Bitcoin holds strong as $5 trillion wiped from stocks

Bitcoin (CRYPTO:BTC) has demonstrated remarkable resilience during a historic $5 trillion sell-off in the S&P 500, triggered by U.S. President Donald Trump’s announcement of reciprocal import tariffs on April 2.

The tariffs, aimed at reducing the $1.2 trillion trade deficit and boosting domestic manufacturing, caused the largest stock market drop on record, surpassing the $3.3 trillion decline during the early days of the COVID-19 pandemic.

While traditional markets plunged, Bitcoin dipped only 3.7% over the same period, trading at approximately $83,600 as of April 5.

Analysts view this divergence as a sign of Bitcoin’s evolving role as a hedge against financial instability.

“What we’re potentially witnessing is an evolution in Bitcoin’s market positioning,” remarked Marcin Kazmierczak, co-founder of RedStone blockchain oracle firm.

He explained that Bitcoin’s fixed supply architecture contrasts with fiat currencies, which may face inflationary pressures under tariff-driven economic changes.

Despite its initial dip, Bitcoin maintained its key support level above $82,000, signaling structural demand remains intact even amid heightened volatility.

Iliya Kalchev, an analyst at Nexo dispatch, noted that this stability underscores Bitcoin’s growing appeal as a reliable asset during economic uncertainty.

James Wo, CEO of venture capital firm DFG, added that Bitcoin’s resilience could strengthen its narrative as “digital gold.”

“Its hard-capped supply and decentralised nature position it as an increasingly reliable store of value,” he stated.

However, Wo cautioned that Bitcoin’s price remains influenced by macroeconomic trends due to increased institutional exposure through ETFs.

Looking ahead, analysts predict Bitcoin’s price could rise significantly in 2025.

Jamie Coutts of Real Vision estimates that growing money supply dynamics could push Bitcoin’s value above $132,000 by year-end.

At the time of reporting, the Bitcoin (BTC) price was $79,183.85.