Bitcoin Price Analysis: Is BTC Decoupling From Stocks After Market Bloodbath?

Bitcoin (BTC) maintained its position above $80,000, showing impressive resilience as traditional markets plunged into bearish territory, with Wall Street reeling from tariffs and China’s response to them. 

Bitcoin briefly dropped below $82,000, falling to a low of $81,959, but recovered to reclaim $83,000 and move to its current level of $83,600. 

Bitcoin (BTC) Resilient As Markets Face China’s Wrath 

Bitcoin (BTC) held firm above $83,000, showing tremendous resilience in the face of growing selling pressure as traditional markets plunged into despair. Markets tanked after China countered President Donald Trump’s tariffs with sweeping levies of its own. Investors were also cautious after fresh labor market data was released. Bitcoin is trading at $83,470, marginally down during the current session. Ethereum and other altcoins also traded in positive territory. 

China announced plans to impose a 34% import tax on all US products beginning next Thursday, a day after Trump’s latest round of tariffs take effect. Beijing derided President Trump’s trade talks, calling them a “typical unilateral bullying practice.” China’s Commerce Ministry also said it will cut off 11 US firms from trade, calling them unreliable entities, and add 16 countries to its export control list. China is the US’s second-largest trading partner. Trump added the 34% tariff on top of an existing 20% tariff on Chinese goods. 

The S&P 500 had its worst day since June 2020 following President Trump’s Liberation Day speech, with equities continuing to experience volatility. Meanwhile, the tech-heavy Nasdaq is set to close in a bear market, down 20% from its record high. David Hernandez, a crypto investment specialist at crypto asset manager 21Shares, stated, 

“The S&P 500 is down roughly 5% this week as investors brace for trade-driven earnings headwinds. Bitcoin, meanwhile, has shown impressive resilience.”

ING’s Chief International Economist, James Knightley, believes the escalation in Trump’s trade war is overshadowing the job growth achieved in March. 

“It's ancient history, given the situation we are in now. We're in a new environment where post-tariff announcements the economic environment is looking much more challenging.”

New Market Data 

Investors also grappled with fresh market data, with the US Labor Department revealing that non-farm payrolls increased 228,000 in March, surpassing economist’s forecasts of 135,000 jobs. However, the unemployment rate rose from 4.1% to 4.2%. According to Knightley, plummeting equity prices, concerns about the impact of tariffs on household spending, and Elon Musk’s cost-cutting initiatives hampering growth outweigh an increase in the unemployment rate. US-based employers announced 275,240 job cuts in March, 205% higher than a year ago. According to A report by Challenger, Gray, and Christmas, the cuts were driven by Elon Musk’s Department of Government Efficiency (DOGE).

“The economic outlook appears much, much gloomier, and we have to brace for some much, much weaker jobs numbers in subsequent months.”

Powell Warns Tariffs Could Hurt Economy 

As the US stock market crumbled for a second day, Federal Reserve Chair Jerome Powell warned that President Trump’s reciprocal tariffs could significantly impact the economy, potentially leading to slower growth and higher inflation. Powell struck a cautious note while addressing a press conference on April 4, stating that tariffs could significantly spike inflation in the coming quarters and complicate the 2% target, only months after rate cuts suggested a soft landing. 

“While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.”

President Donald Trump called on the Fed Chair to cut interest rates and took a veiled dig at Powell in a Truth Social post. The Federal Reserve faces a crucial choice. It could pause interest rate cuts or quickly respond with rate reductions if the economy weakened. Powell noted that while the economy was in a good place, it was too soon to say what would be the appropriate path for monetary policy. 

Bitcoin (BTC) Price Analysis 

Analysts and investors are anticipating a surge in volatility in the short term. The Fed Chair’s remarks about tariffs leading to higher inflation and unemployment could also rattle investors and push them towards BTC. Analysts have already pointed out that BTC appears to be decoupling from stocks. BTC hit a 9-day high on April 2, before President Trump announced his reciprocal tariffs. At the time, BTC registered a substantial decline. However, the flagship cryptocurrency has held above $82,000 since then, while the US equities markets have plunged into disarray. BTC rose to $84,766 on April 4, going against established trends. Analyst Cory Bates stated on X, 

“This is actually wild to see— for the first time, Bitcoin is decoupling right before our eyes.”

While most of the market remains deeply concerned about tariffs, BitMEX co-founder Arthur Hayes stated he loves tariffs since he expects them to be positive for BTC in the medium term. However, other analysts believe BTC’s upside could be limited due to possible tariff responses. 

BTC registered a sharp decline last Friday, plunging over 3%, slipping below the 200-day SMA and $85,000 and settling at $84,422. Price action remained bearish on Saturday as the price fell below the 20-day SMA and settled at $82,704. Sellers retained control on Sunday as BTC registered a marginal decline and settled at $82,404. BTC encountered volatility on Monday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand, and BTC registered a marginal increase.

Source: TradingView

Bullish sentiment intensified on Tuesday as BTC rose over 3%, crossing $85,000 and the 20-day SMA and settling at $85,150. The price surged to an intraday high of $88,624 on Wednesday as bullish sentiment picked up in the leadup to Trump’s Liberation Day speech. However, markets tanked, and BTC fell over 3%, slipping below the 20-day SMA and settling at $82,535. BTC recovered on Thursday, rising almost 1% and settling at $83,199. The price encountered volatility on Friday but ultimately registered an increase of 0.76%, settling at $83,828. The current session sees BTC down almost 1% as sellers look to drive the price below $80,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice