Bitcoin and the broader crypto market have surprisingly held strong despite a massive crash in the U.S. stock market amid another round of declines.
The U.S. stock market plunged again on Friday, April 4, 2025, erasing $1.5 trillion in market cap within the day’s opening hours. This sharp selloff comes from growing global trade tensions, particularly following new tariffs announced by President Donald Trump.
As investors grow increasingly uneasy over the possibility of a prolonged trade war between the U.S. and China, equities suffered deep losses across major indices and sectors.
However, in sharp contrast, Bitcoin and the broader cryptocurrency market demonstrated resilience, presenting investors with a surprising safe haven in a turbulent financial atmosphere.
US Stock Market Crashes
Particularly, the S&P 500 collapsed 4.8% at press time, marking its steepest one-day drop in over four years. The downturn prompted several leading investment banks to slash their year-end forecasts.
UBS revised its projection from 6,400 down to 5,800, while RBC reduced its outlook to 5,550. JPMorgan Chase suggested that if tariffs remain in place, there is now a 60% likelihood of a global recession.
Tech stocks were among those that suffered the biggest impact. The Roundhill Magnificent Seven ETF, heavily weighted with top tech performers, fell by nearly 7% and is now down 20% for the year. Apple’s shares tumbled 8%, while Amazon dropped 7%. Tesla also faced a significant hit, shedding 5.4% of its value.
Notably, Dan Ives of Wedbush warned that the escalating tariffs could halt the growth trajectory of AI and push the tech industry back a full decade. Meanwhile, financial institutions did not escape the carnage either, with shares of JPMorgan and Citigroup both sliding around 5%.
Bitcoin and Crypto Surprisingly Unmoved
However, amid the chaos in traditional markets, the crypto sector demonstrated remarkable steadiness. After suffering a steep 3.13% correction on Wednesday, April 2, falling to the lower end of the $82,000 range, Bitcoin regained traction the following day, posting a 0.76% rebound even as Wall Street extended its losses.
On Friday, April 4, Bitcoin has only dipped slightly, trimming just 0.42% off its value. Interestingly though, over the past 24 hours, the asset has gained 1.07%, now trading at $82,809 and sitting near the upper end of its recent range.
The global crypto market cap showed similar resilience. Although it briefly dipped to $2.58 trillion earlier today, it recovered to $2.61 trillion, representing a modest 0.54% increase from its opening figure.
Further, among the top 10 cryptocurrencies, all have posted gains over the past 24 hours. Dogecoin led the rally with a 5.4% gain, while XRP closely followed, climbing 5.22%. Ethereum improved by 1.5%, Cardano added 3.29%, and Solana rose by 2.02%.
This divergence has drawn the attention of analysts. Joe Burnett, head of research at Unchained, noted that Bitcoin is approaching a new all-time high against the NASDAQ, indicating growing confidence in the asset’s role as a hedge during equity market turmoil.
Bitcoin is about to make a new all time high against the Nasdaq.
The shift out of big tech and into sound money will melt brains. pic.twitter.com/XCEOjkm0zD
— Joe Burnett, MSBA (@IIICapital) April 4, 2025
Meanwhile, analyst Colin observed that the global M2 money supply is aligning in a way that could suggest a near-term bottom around April 6, with a potential expansion phase beginning in May.
While he noted that this is merely an observation and not a forecast, he highlighted how Bitcoin has outperformed stocks during this downturn, maintaining a notable level of resilience.
