Bitcoin Defies Market Turmoil, Emerges as Haven Amid Rate Jitters and Equity Slump
As U.S. equities spiral under renewed pressure, Bitcoin is holding its ground—signaling what some say is a new phase in the asset’s evolution.
Trading at $86,800, BTC is up 2.3% over the past 24 hours, marking its highest level since early April. This comes even as the S&P 500, Nasdaq, and Dow Jones all fell over 3%, dragged down by uncertainty around U.S. trade policy and speculation that President Trump may try to remove Federal Reserve Chair Jerome Powell before his term ends in 2026.
Gold surged 2.9% to $3,400, while the U.S. Dollar Index hit a three-year low, underscoring a broader investor retreat from traditional risk assets.
The divergence between crypto and traditional markets is catching analysts’ attention. Lawrence McDonald, a macro veteran and former strategist at Société Générale, highlighted Bitcoin’s relative strength, calling it unprecedented. “BTC has never stayed this strong with the VIX near 30. This is a defining moment,” he wrote on X, suggesting Bitcoin may now be reflecting deeper structural stress in fiat systems.
Crypto equities painted a mixed picture. Shares of Coinbase and Strategy dipped slightly, while Bitcoin miners saw sharper losses. Still, BTC’s resilience kept the CoinDesk 20 Index in the green, up 1.17% overall.
The recent alignment between Bitcoin and gold is fueling speculation that the crypto asset is gaining ground as a macro hedge. Analysts at QCP Capital remain cautiously optimistic. “We may be witnessing early signs of Bitcoin maturing into a true safe-haven asset. But with thin liquidity due to European holidays, we’ll need to wait for more confirmation.”
The political backdrop remains a key wild card. Trump’s public criticism of Powell and calls for immediate rate cuts have stirred fresh volatility. If the rhetoric escalates into policy conflict, markets could remain on edge—and Bitcoin may continue to benefit from the uncertainty.
