“Decoupling” has returned to the markets, but not in the way bitcoin (BTC) enthusiasts had hoped. While U.S. stocks surged on Tuesday, continuing their recovery after “Black Monday” failed to materialize, bitcoin took a downturn, moving in the opposite direction.
By mid-day trading in the U.S., the Nasdaq was up by 3%, and the S&P 500 was following close behind with nearly a 3% gain. Bitcoin, however, which had briefly surged past $80,000, retreated to just above $78,000, nearing its weekend low around $75,000.
This sharp contrast in price movements follows a series of significant losses triggered by President Trump’s sweeping tariff announcements last Wednesday. However, a few positive news stories have helped boost market sentiment, including Trump’s social media post suggesting an imminent trade deal with South Korea and Treasury Secretary Scott Bessent expressing optimism about the U.S.’s trade position with China.
The stock market rally has been global, with European markets closing up 3% and Japan’s Nikkei posting a 6% gain.
One of the simplest explanations for the divergence between bitcoin and traditional stocks lies in the broader trend. Since last Wednesday’s tariff announcement, bitcoin has dropped roughly 9%, not far from the Nasdaq’s 8% decline during the same period.
Looking at a longer time frame, bitcoin has retreated nearly 30% from its record high in mid-January, but it still holds a 14% gain since last November’s U.S. election. Meanwhile, the Nasdaq has experienced a decline of almost 10% over the same period.
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