Bitcoin price has rallied by 12%, indicating a steep reversal in its trend in the market. The price on April 22, 2025, was around $93,091. The price rise happens as the cryptocurrency appears to diverge from normal stocks like the Nasdaq and S&P 500, which have been witnessing volatility amid stress in the economy.
Market Conditions and Impacts
The value of Bitcoin is rising in sync with deepening recession anxieties in the United States. JPMorgan analysts have raised the likelihood of a 2025 recession to 60%. They attribute persistent tensions between the U.S. and China when it comes to trade, with tariffs as high as 125%, as one of the main economic security threats worldwide. Bitcoin has coped well under the circumstances, acting more as a safe-haven asset, such as gold, than reflecting the downturning performance of equities.
Bitcoin Price Decoupling from Legacy Assets
Statistics from recent times indicate that Bitcoin’s correlation with the S&P 500 fell to 0.65. This means that while Bitcoin moved with stocks in the past, it is starting to decouple from stocks. Nansen CEO Alex Svanevik gave an explanation on how Bitcoin’s resistance during such volatile market times is a sign of a shift in investor sentiment.
Moreover, the U.S. government’s intention to establish a Strategic Bitcoin Reserve will even more firmly establish Bitcoin as a safe asset. The reserve will be initially established on the basis of seized Bitcoin, but subsequent purchases are to be financed from tariff receipts.
Overall Cryptocurrency Market Performance
The whole crypto market also saw positive growth. Solana recorded a growth of 14.5%, while Ethereum saw a growth of almost 8%. The total global crypto market cap also grew by 6%, which is the recovery phase after huge sell-offs in the first half of this month.
In the last 24 hours, crypto liquidations stood at $581.52M and were largely short liquidations. These include $142 million in Bitcoin, which indicates the risk and volatility with which traders are operating in the present situation.
Bitcoin’s latest price appreciation indicates that there may be some attitudinal shift in how it is perceived during an economic downturn. Now, as it begins to act like a traditional safe-haven asset, investors will come to understand that it can be a good substitute for traditional risk assets. What happens when the world economy is experiencing stress, and the next regulatory shift will determine where Bitcoin goes from here.
