Bitcoin is on the rise as it detaches from the stock market trend. At the time of writing, the coin trades at $84,773 and is showing great strength in the face of ongoing market issues, which include U.S. tariffs and Federal Reserve policies. We will see in the coming weeks if Bitcoin can push out to $90,000.
Bitcoin Breaks from Stock Trends
We are seeing recent market action that indicates Bitcoin is breaking away from the stock market. While Bitcoin is still seen as a tech asset, its correlation with the Nasdaq 100 has reduced greatly. For example, on April 16, BlackRock’s iShares Bitcoin Trust went up 0.46% while the Nasdaq fell over 3%. This is a sign that Bitcoin may soon be classified as an independent asset class.
Tariff Pressures and Fed Stance
The current economic environment is a play of tariff issues and what the Federal Reserve is doing. Also on April 16, Fed Chair Jerome Powell said the Fed won’t be a market backstop in big selloffs. His aggressive stand on inflation has made investors jittery, which in turn has increased the demand for Bitcoin as a safe haven.
Analysts at Santiment report that Bitcoin’s social media mindshare is very positive at the moment, which is a good sign for traders. As we see Bitcoin trading in the $83k to $86k range, we may see it hit $90k if the macro picture plays out in its favour.
Insider Trading Issue with Trump
Sen. Chris Murphy is going after former President Trump for what he says are insider trading violations related to the recent “Liberation Day” tariff issue. Murphy reports that some of Trump’s people did very well with non-public information about tariff pauses. This is a large issue in the political and financial world.
As trader sentiment grows and we see political issues play out in the financial world, Bitcoin may have some very large moves in the coming weeks. Investors are very much on alert as this situation plays out.
