Staff Reporter
Bitcoin (BTC-USD) has surged to its highest level since early March, sparking optimism that the leading digital currency is finally breaking away from its long-standing correlation with U.S. tech stocks.
After initially dropping during the selloff triggered by President Donald Trump’s announcement of broad tariffs on both allies and rivals, Bitcoin has rebounded nearly 20% since hitting a low on April 7.
This rally suggests it is starting to trade more like gold, which has emerged as a safe haven amid ongoing tariff uncertainties.
The separation from U.S. assets, largely influenced by a weakening dollar, offers some hope for cryptocurrency enthusiasts.
This comes after Trump’s first three months in office failed to ignite the anticipated rally. Despite April’s gains, Bitcoin remains significantly below its value when Trump took office.
In recent days, Trump’s criticism of Federal Reserve Chair Jerome Powell, whom he blames for not cutting interest rates quickly enough, has further unsettled investors.
This has fueled speculation that the era of U.S. “exceptionalism,” which previously drove a booming stock market, may be coming to an end.
“One possible outcome of this U.S. decoupling is a renewed focus on Bitcoin as a long-term store of value,” said Augustine Fan, a partner at the crypto trading platform SignalPlus. “We’ve critiqued Bitcoin as a leveraged Nasdaq proxy over the past year, but it’s finally showing signs of decoupling.”
As of 9:20 a.m. in New York on Tuesday, Bitcoin had gained as much as 2.9%, trading close to $90,000. The dollar spot index saw a slight recovery after dropping to its lowest point since late 2023, while gold soared past $3,500 an ounce before pulling back slightly.
The Nasdaq 100 index appeared ready for a rebound following Monday’s sharp decline.
“If Bitcoin continues to behave more like gold than a tech stock, the decoupling narrative will gain traction,” said Richard Galvin, co-founder of the Sydney-based crypto hedge fund DACM.
In another sign of shifting sentiment, U.S.-listed Bitcoin ETFs attracted a total of $381 million on Monday, marking the largest influx since January 30. A sustained move above $88,800 for Bitcoin could lead to further gains in the $92,000 to $94,000 range, according to Riya Sehgal, a research analyst at Delta Exchange.
