Bitcoin’s price surge surpasses the Nasdaq as investors turn to it as a safe-haven asset in times of market turmoil.
The cryptocurrency market is showing resilience as U.S. equities plunge and investors look to bitcoin as a potential hedge.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
It was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto.
Bitcoin operates on a public ledger called the blockchain, which records all transactions made with the currency.
The total supply of bitcoin is capped at 21 million coins, and new coins are generated through a process called mining, where powerful computers solve complex mathematical equations to validate transactions and add them to the blockchain.
The Impact of Reciprocal Tariffs on U.S. Equities
President Donald Trump‘s unveiling of reciprocal tariffs has led to a staggering $5.4 trillion loss in U.S. equities value over two days, with the S&P 500 index dropping to its lowest level in 11 months and the Nasdaq 100 entering bear market territory.
Bitcoin’s Resilience Amid Market Turmoil
In contrast, bitcoin (BTC) has dropped roughly 6% since the tariffs were unveiled, compared to the Nasdaq‘s 11% drop. The broader crypto market, as measured by the CoinDesk 20 (CD20) index, has also shown resilience, dropping by roughly 4.9% over the same period.
A Potential Hedge Against Traditional Finance Instability
Standard Chartered sees bitcoin as a potential hedge against traditional finance instability. Geoffrey Kendrick, from Standard Chartered, notes that cryptocurrency prices could be ‘useful as a TradFi hedge’ due to their accessibility through traditional investment products, including exchange-traded funds (ETFs). He also suggests that bitcoin could serve as an ‘US isolation hedge,’ implying that it may provide a safe-haven asset during times of economic uncertainty.
The Crypto Community’s Reaction
The crypto community has been celebrating the purported birthday of bitcoin creator Satoshi Nakamoto, with some speculating that the date is symbolic rather than actual. This celebration coincides with the anniversary of Executive Order 6102, signed by President Franklin D. Roosevelt on April 5, 1933, which required Americans to turn in their gold to the Federal Reserve.
Outlook for the Crypto Market
Despite the current market volatility, cryptocurrency prices are likely to remain resilient. As investors continue to seek safe-haven assets and alternative investment opportunities, bitcoin is emerging as a potential hedge against traditional finance instability.
