The Cracks Are There
BTC continues to consolidate at $94K, having outperformed gold, US tech stocks and the S&P 500 index in April.
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Bitcoin has consolidated at $94K, up significantly from a month low of $75K. The largest cryptocurrency has outperformed gold, tech stocks and the S&P 500 index in April.
We’ve highlighted in previous reports that since the beginning of the month, Bitcoin has abjured its near-linear relationship with the S&P 500.
“While the strong relationship might not be definitively broken, it has definitely bent. A previously linear relationship between US equities and BTC that had held in the post-election period broke down in April, leading to BTC rallying while the SPX crashed.”
Since President Trump’s jawdropping reciprocal tariff announcement on April 2, the S&P 500 is down 2%, the Nasdaq-100 has pared back most of its losses and down only 0.18%, however BTC stands out significantly: despite initially following risk-on assets down, it quickly took a separate path and has since rallied close to 12%. That rally has in part been supported by a weakening in the US dollar as a simultaneous selloff in both the greenback and US treasuries was a signal of diversification away from US denominated assets.