Bitcoin Shows Resilience Amid 8.21% S&P 500 Drop, Falls 0.49% Weekly

This week, United States equities experienced a significant downturn following President Donald Trump’s announcement of sweeping new tariffs. However, one major asset class remained largely unaffected—Bitcoin (BTC).

While all major indices recorded substantial capital outflows, Bitcoin demonstrated resilience, a trend observed across the broader cryptocurrency market. As of the latest reports, Bitcoin was trading at $82,427, showing a minimal decrease of 0.49% over the past seven days and a modest 0.5% drop in the past 24 hours.

In contrast, the performance of major indices was grim: the S&P 500 fell by 8.21%, the Dow Jones dropped by 7.4%, and the Nasdaq declined by 8.4%. Bitcoin, however, exhibited surprising stability throughout the week, briefly surging to nearly $88,000 on April 2 before cooling off. Despite this pullback, Bitcoin has remained largely range-bound and resilient, indicating a potential decoupling from broader market turmoil.

Analysts have cautioned that Trump’s tariffs could reignite inflationary pressures, further impacting the stock market. Several factors may explain Bitcoin’s short-term resilience. Trump’s tariffs, aimed at reducing the trade deficit, have raised concerns about retaliatory measures from major trading partners, potentially weakening the dollar’s dominance and boosting demand for Bitcoin as a digital gold alternative.

Gold surged to record highs above $3,000, indicating an ongoing flight to non-fiat stores of value. However, Bitcoin’s resilience is not guaranteed based on its performance during the week. The digital currency dropped from a high of $88,000 to $81,200 earlier in the week, reflecting some risk-off sentiment. But its swift rebound signals a shift in investor behavior.

Experts note that while tariffs may drive inflation, the crypto market has remained relatively stable, likely due to Bitcoin’s weaker correlation with tariff-sensitive sectors like manufacturing and tech. The unveiling of concrete policy details on “Liberation Day” may have also reduced uncertainty. Some institutional investors saw the pullback as a buying opportunity.

While uncertainty lingers in the equities market, Bitcoin seems to be banking on continued price appreciation. This possibility is evidenced by on-chain data, which noted that over 91,900 BTC have been withdrawn from cryptocurrency exchanges in the past month. Such an outflow often signals rising investor confidence and a bullish long-term outlook, as traders typically move Bitcoin to cold storage when they intend to hold rather than sell. Some analysts project a $150,000 price target for Bitcoin.