Bitcoin Surges 23% to $91,687, Decoupling from U.S. Tech Stocks
1min read Bitcoin has surged past the $90,000 mark for the first time since early March, sparking optimism that the cryptocurrency may finally be decoupling from the long-standing trend of moving in tandem with U.S. tech stocks. This rebound comes after a brief period of risk asset sell-offs triggered by the announcement of broad tariffs by Donald Trump on geopolitical allies and adversaries. Since hitting a low point on April 7, Bitcoin has rebounded by nearly 23%, with its trading behavior beginning to resemble that of gold, which has been the standout asset during market disruptions caused by tariff uncertainties.
On Tuesday, Bitcoin briefly rose by 5%, reaching a high of $91,687. The Bloomberg Dollar Spot Index, which had fallen to its lowest point since the end of 2023 on Monday, showed slight signs of recovery. The Nasdaq-100 Index, which had declined on Monday, is expected to rebound but remains significantly lower than its levels from late February and early March.
The decoupling from U.S. assets, largely driven by the decline in the U.S. dollar, has provided some relief to cryptocurrency bulls. The first three months of Trump's presidency did not see the anticipated surge in Bitcoin prices. Even after the April rally, Bitcoin's trading price remains well below the levels seen when Trump was re-elected.
Trump's recent attacks on Federal Reserve Chairman Jerome Powell, accusing him of being too slow to act on interest rate cuts, have further heightened investor anxiety and reinforced the notion that the era of U.S. exceptionalism may be coming to an end. This sentiment has been echoed by analysts who suggest that the potential decoupling of Bitcoin from U.S. assets could reignite discussions about its long-term viability as a store of value.
Augustine Fan, a partner at the cryptocurrency trading platform SignalPlus, noted that the decoupling could lead to a renewed focus on Bitcoin's potential as a long-term store of value. "Over the past year, we have been critical of Bitcoin as a leveraged alternative to the Nasdaq, but it is finally showing some signs of decoupling," Fan said. This shift in market dynamics could signal a new phase for Bitcoin, one where it is increasingly seen as a safe haven asset rather than a speculative investment tied to the fortunes of U.S. tech stocks.
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