Bitcoin (BTC) is demonstrating “signs of resilience” despite a downturn in stocks and the wider cryptocurrency market, which is experiencing a global sell-off following the recent tariff imposition by US President Donald Trump on imports, as noted by industry analysts.
As of midday trading on April 7, Bitcoin has seen an increase of nearly 1%, approaching $79,000. Conversely, the S&P 500 index, which tracks large US stocks, remains mostly unchanged, while front-month gold futures have dropped approximately 1.5%, according to financial data sources.
“In light of the recent tariff announcements, BTC has exhibited resilience, stabilizing or rebounding on days when traditional risk assets have struggled,” the research findings indicated.
Interestingly, the proportion of Bitcoin held by long-term investors continues to grow, “demonstrating confidence and minimal capitulation amid recent market volatility,” the analysts highlighted.
On April 2, President Trump announced a minimum 10% tariff on most imports to the United States, along with additional “reciprocal” tariffs on products from 57 nations.
Since that announcement, major US stock indices, including the S&P 500 and Nasdaq, have fallen by over 10% as traders prepare for potential trade conflict.
Bitcoin remains down more than stocks, approximately 12%; however, it has fared better than the overall cryptocurrency market capitalization, which has declined around 25% since April 2.
“As reciprocal tariffs are introduced and global markets adjust to the possibilities of extended trade fragmentation, much depends on BTC’s ability to reaffirm its safe haven narrative,” the findings noted.
Image Source: Research Insights
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Shifting Asset Correlations
The correlation between Bitcoin and gold — traditionally viewed as the prime safe haven asset during times of significant economic uncertainty — has been relatively low, averaging around 0.12 over the past 90 days. The cryptocurrency, however, shows a stronger correlation with stocks at 0.32. Nevertheless, “despite short-term fluctuations, BTC may still have the potential to establish a more distinct macro identity,” analysts observed.
“The critical inquiry is whether BTC can revert to its long-term trend of low correlation with equities,” the report emphasized.
Image Source: Research Insights
Currently, gold seems to be the preferred safe haven asset among investment managers. A recent survey indicated that 58% of respondents would choose to hold gold during a trade war, compared to just 3% who favored Bitcoin.
“Market participants will be closely observing to determine if BTC can maintain its status as a non-sovereign, permissionless asset in an increasingly protectionist global reality,” analysts added.
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