- Bitcoin Price dropped below $80,000 amid stock market volatility, falling 3% since the start of the week.
- US stocks suffered significant losses with fears of a 1987-style crash scenario emerging after Trump’s tariff announcement wiped out $8.2 trillion in market value.
- Bitcoin appears to be resisting the stock market decline, with traders divided on whether BTC will follow equities down or break out independently.
Bitcoin dipped below $80,000 on April 6 during a volatile weekly close as market participants debated whether cryptocurrency would follow stocks in a potential crash scenario. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD declined by 3% since the beginning of the week, with flash volatility occurring multiple times in the interim days.
The cryptocurrency’s movements come amid broader market concerns after US stocks recorded substantial losses. Both the S&P 500 and Nasdaq Composite Index closed down nearly 6% on April 4 following US trade tariff announcements and growing recession fears.
Financial commentator Holger Zchaepitz noted on X that "Trump’s tariff announcement this week has wiped out $8.2 TRILLION in stock market value — more than was lost during the worst week of the 2008 financial crisis."
Market Experts Warn of Potential Crash Scenario
The poor market performance has sparked comparisons to the "Black Monday" crash of 1987. Jim Cramer, host of CNBC’s "Mad Money," stated on X: "It’s tough to build a new, weaker, world order on the fly. Frantically trying to do it but don’t see anything yet that takes the October 87 scenario off the table yet."
While some fear a market collapse, others see different outcomes for Bitcoin. Max Keiser, a Bitcoin supporter, made a bold prediction claiming that "A 1987 style mega crash will push Bitcoin to $220,000 this month as trillions in wealth seek the ultimate safe haven: Bitcoin."
Bitcoin Shows Resilience Against Stock Market Decline
Among crypto traders, sentiment suggests Bitcoin might decouple from traditional markets. Popular trader Daan Crypto Trades highlighted that "$BTC Volatility going lower and lower while the $VIX (Volatility Index) on Stocks has closed at the highest level since the Covid Crash in 2020," calling this divergence "pretty unheard of" and predicting a significant move for crypto in the coming week.
Fellow trader Cas Abbe suggested recent $76,000 lows might prove to be a "fake breakdown," comparing current market conditions to previous post-ETF dumps. Abbe indicated he’s waiting for "a weekly reclaim of $92,000 to confirm the uptrend."
Bitcoin’s apparent resilience against wider market volatility has many crypto analysts proposing that rather than following stocks downward, Bitcoin might instead be preparing for a breakout, with some even suggesting the beginning of a run toward $150,000.
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