Bitcoin Shows Decoupling Signs as Ethereum, Cardano Lead Altcoins in 14% Surge
Bitcoin (BTC) surpassed $93,500 late on Tuesday, marking a new high and signaling a shift in market dynamics, with Cardano (ADA) and Ethereum (ETH) leading altcoins in a remarkable surge. Bitcoin’s performance has sparked discussions about its decoupling from traditional financial markets, as U.S.-China trade relations show signs of easing.
The broader crypto market rallied, with BTC up 6.5%. Ethereum, Cardano, and other major altcoins like Solana (SOL) and XRP recorded impressive gains, ranging from 7% to 14%. Memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB) also saw their value increase by more than 11%, while Sui Network’s SUI led midcap tokens with an astonishing 30% surge.
Overall market capitalization increased by 4.4%, reaching $3.03 trillion, with the CoinDesk 20 Index rising by 5%. This surge in digital assets came after U.S. President Donald Trump made remarks suggesting a possible easing of tariffs on China, improving market sentiment.
Trump’s statement that he would reduce tariffs and reaffirming Federal Reserve Chair Jerome Powell’s position helped alleviate investor concerns, offering much-needed relief to financial markets. However, Bitcoin’s behavior in the face of this news signals its growing independence from traditional asset classes.
“Bitcoin is clearly starting to separate itself from the equity markets,” said Nick Ruck, director at LVRG Research. “Its recent price movement amid conflicting news on tariffs shows that it is evolving into more of a store of value than a speculative risk asset.”
With Bitcoin’s rise, its correlation with traditional financial markets seems to be weakening. Many analysts now see it as a potential hedge, similar to gold, especially as Bitcoin continues to show resilience in the face of both positive and negative news.
“Bitcoin’s current trajectory is pointing towards its long-term potential as a store of value, akin to gold,” said Jupiter Zheng, partner at HashKey Capital. “As Bitcoin increasingly acts independently of the stock markets, it’s gaining credibility as a safe haven in uncertain times.”
The rally also aligns with the strength in gold, which has hit new highs recently, leading some to speculate that institutional investors are starting to view Bitcoin as an alternative asset in times of economic uncertainty.
“Bitcoin’s decoupling from equities may be a sign of broader market shifts, where central banks and institutional investors view it as a reliable store of value,” said Augustine Fan, head of insights at SignalPlus. “The strength in gold and Bitcoin during Asian market hours is a clear indication of flows out of U.S. dollars, further solidifying Bitcoin’s potential in this environment.”
