- Bitcoin has shown resilience amid market turbulence following Trump’s tariff announcements, breaking its correlation with declining stock markets.
- Treasury Secretary Scott Bessent has described Bitcoin as an emerging “store of value” comparable to Gold.
- While global stock markets have dropped around 10% after Trump’s tariff implementation, Bitcoin prices have climbed over the week.
Bitcoin and cryptocurrency prices have experienced volatility following U.S. President Donald Trump‘s recent implementation of global tariffs. Despite initial drops, Bitcoin has rebounded and broken its typical correlation with the stock market. This comes as Treasury Secretary Scott Bessent has publicly acknowledged Bitcoin’s role as an emerging store of value, comparing it to traditional safe-haven assets like gold.
Bessent made these remarks during an appearance on Tucker Carlson’s podcast, where he stated, “Bitcoin is becoming a store of value, gold’s has historically been a store of value,” adding that there are “a lot of different stores of value over time.” His comments come at a significant moment when global financial markets are responding dramatically to Trump’s trade policies.
Market Impacts and Bitcoin’s Response
Stock markets worldwide have fallen sharply following what Trump called “Liberation Day” trade tariffs, which implemented a global baseline import tax of 10% with higher rates for dozens of countries. While the U.S. stock market has plummeted approximately 10% since the announcement, Bitcoin has moved in the opposite direction, climbing throughout the week.
David Hernandez, crypto investment specialist at 21Shares, noted via email, “As risk assets continue to sell off, investors may increasingly rotate into traditional hedges like bonds and gold—or into bitcoin, which has shown notable resilience relative to equities in recent days.” This divergence marks a potential shift in Bitcoin’s market behavior.
Gold, traditionally viewed as a safe haven asset, has increased about 15% this year as investors and central banks purchase it to hedge against economic uncertainties. Bitcoin’s performance during this turbulent period has caught the attention of market observers, with Hernandez describing it as “a true testament to its investment case as an emerging store of value and potential for uncorrelated returns.”
Breaking Traditional Correlations
Bitcoin’s price movement this week has notably diverged from its recent correlation with the stock market, particularly from the tech-heavy Nasdaq and the “Magnificent 7” stocks that include Apple, Alphabet, Amazon, Microsoft, Netflix, NVIDIA, and Tesla.
Joe Burnett, director of market research at crypto financial company Unchained, observed in emailed comments, “The Trump tariffs have unleashed volatility, notably shaking the U.S. equity markets, but with this, bitcoin’s unique reaction deserves attention.” Burnett drew parallels to March 2020, when Bitcoin “rapidly bottomed and recovered first (before U.S. equities),” suggesting this pattern may be repeating.
However, Burnett cautioned that if stock markets continue declining aggressively in coming weeks, Bitcoin could still experience another downturn, indicating the complex relationship between traditional financial markets and cryptocurrencies remains in flux.
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