Bitcoin Outperforms Stocks and Gold Amid Market Sell-off
08 Apr, 2025 ● Vijesti o kovanicama
Bitcoin is displaying “signs of resilience” despite a global sell-off that has dragged down stocks and the wider cryptocurrency market, following US President Donald Trump’s announcement of sweeping tariffs on imports last week, according to Binance Research.
By mid-day on April 7, Bitcoin had gained nearly 1%, trading close to $79,000. In contrast, the S&P 500 remained largely unchanged, and gold futures were down around 1.5%, based on Google Finance data.
Binance noted in its April 7 report that Bitcoin has shown stability or even recovery during periods when traditional risk assets declined, in the wake of the tariff news.
The report also highlighted an increase in the number of long-term Bitcoin holders, suggesting strong investor confidence and minimal selling during recent market volatility.
On April 2, Trump introduced a new wave of tariffs, imposing at least a 10% duty on most US imports and announcing reciprocal tariffs on goods from 57 countries.
Since the announcement, major US stock indexes such as the S&P 500 and Nasdaq have dropped more than 10%, as fears of a trade war grew.
Bitcoin, while also down about 12% since April 2, has performed better than the broader crypto market, which has declined by roughly 25%.
The report emphasized that Bitcoin’s role as a potential safe haven could become more relevant as global markets adjust to long-term trade fragmentation.
Binance pointed out that Bitcoin’s correlation with gold has remained low — about 0.12 over the past 90 days — while its correlation with equities is closer to 0.32.
Despite short-term fluctuations, the exchange said Bitcoin may have the potential to reclaim a more independent macroeconomic role.
The report raised the question of whether Bitcoin can return to a historically low correlation with equities over time.
Currently, gold remains the favored safe haven among institutional investors. In one survey cited by Binance, 58% of respondents chose gold during a trade war scenario, while only 3% selected Bitcoin.
Binance concluded that observers will be closely monitoring Bitcoin to see if it can maintain its appeal as a decentralized, non-sovereign asset in an increasingly protectionist global economy.
Sources:
https://www.binance.com/en/research/analysis/tariff-escalation-and-crypto-markets/
