Bitcoin's $90 Billion Pullback Pales as U.S. Stocks Lose $11 Trillion

Bitcoin has experienced a $90 billion pullback, which, while significant, is relatively minor compared to the broader market deleveraging cycle. This divergence between Bitcoin and traditional risk assets has sparked discussions about the potential for Bitcoin to reach $100,000.

Since February 19, the U.S. stock market has lost $11 trillion in market capitalization, with a significant portion of this drawdown occurring post-‘Liberation Day.’ In contrast, Bitcoin has shown resilience, correcting only 5.17% from its $1.74 trillion valuation. This stability has reinforced Bitcoin's long-term positioning as a hedge against market turbulence.

Long-term holders have been accumulating Bitcoin, reflecting strong conviction in its value. The supply of Bitcoin held by long-term holders has expanded, while short-term holder supply has declined to a two-month low. This accumulation is occurring at an average cost basis of $84,000 per Bitcoin, indicating that investors are confident in Bitcoin's future price appreciation.

Bitcoin's decoupling from U.S. equities and its ability to hold strong despite macro uncertainty have fueled its case as a hedge against market turbulence. As long as demand stays firm, Bitcoin's path to six-figure price discovery remains well-positioned. Capital inflows could pick up even more, especially with U.S. stocks facing increased downside risk from rising tariff pressures.

In the short term, Bitcoin must break resistance at $85,000–$87,000 to trigger FOMO and establish a strong bid wall within this range. A breakdown below $80,000 remains a low-probability event, as whale cohorts have aggressively accumulated Bitcoin, driving holdings to a three-month-high. This accumulation has made a retest of the $77,000 support increasingly unlikely.

Germany's recent pullback of 1,200 tonnes of gold worth $124 billion from New York reserves could weaken gold's role as a global haven. If more countries follow suit, it could further strengthen Bitcoin's position as a safe haven asset. With Bitcoin holding strong while the S&P 500 sheds $4 trillion in a week and gold losing steam, Bitcoin is in a prime position to attract capital from governments, institutions, and retail investors alike.