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- ๐ก๏ธ Bitcoin Stands Strong While Stocks Shed $5 Trillion
๐ก๏ธ Bitcoin Stands Strong While Stocks Shed $5 Trillion
Hey crypto trailblazer, ๐
This week brought a financial tsunami as Trump's tariffs wreaked havoc on global markets. Yet, bitcoin might be writing a different story. Let's dig into what this means for your crypto portfolio.
๐BTC Proves Its Hedge Status Amid Historic Stock Wipeout
The numbers don't lie: While the S&P 500 just posted a staggering $5 trillion loss in market cap over two days (its largest drop on record and far worse than the $3.3 trillion COVID crash of March 2020), Bitcoin held relatively steady.
The contrast is striking โ Bitcoin dipped just 3.7% during the same two-day period, trading around $83,600 as of today. This performance is catching serious attention from analysts who see it as evidence of Bitcoin's maturing role as a hedge against financial instability.
Market expert Marcin Kazmierczak notes that this might signal "an evolution in Bitcoin's market positioning," as it's diverging from its traditional correlation with risk assets during macro shocks. Bitcoin's fixed supply architecture positions it well to counter potential inflation from tariff-driven economic changes.
๐ผ Crypto Companies Feel the Heat: Stocks Down, IPOs on Hold
Crypto firms weren't completely immune to market turmoil. Despite the industry's warm relationship with President Trump, crypto stocks suffered significant losses:
Crypto exchange Coinbase witnessed a sudden drop in its stock price
Bitcoin mining companies were hit particularly hard
Overall market cap losses were substantial across the crypto equity landscape
More tellingly, the market uncertainty has put major crypto IPO plans on ice. Stablecoin issuer Circle has reportedly paused its 2025 IPO plans after filing to go public on April 1st, with The Wall Street Journal reporting that the company is "waiting anxiously" before taking further steps.
Circle isn't alone โ several companies including fintech Klarna and ticketing service StubHub are reportedly considering altering or shelving their IPO plans as market conditions deteriorate.
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๐ฎ What's Next: Fed Response & Market Dynamics
Federal Reserve Chair Jerome Powell has already warned that tariffs could lead to "higher inflation and slower growth," complicating the Fed's 2% inflation target. This dynamic creates an interesting environment for Bitcoin:
Inflation concerns could drive more institutional interest in Bitcoin as a hedge
Traditional investors looking for stability might find Bitcoin's fixed supply appealing
Any "flight to safety" that benefits gold could potentially boost Bitcoin as "digital gold"
As China retaliates with 34% tariffs on US goods and Trump pressures Powell to cut interest rates, watch for increased volatility that could further test Bitcoin's decoupling theory.
Stay epic,
Epic Crypto News Team
DISCLAIMER: This newsletter is for educational purposes only. Nothing here is financial advice. Do your own research before making any investment decisions. Crypto markets are volatile and risky. Only invest what you can afford to lose.
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