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Bitcoin Decouples from US Stocks, 'Digital Gold' Narrative Reasserts

2025.04.23 11:40:33

On April 23rd, Bitcoin for the first time since early March broke through the $90,000 mark, which ignited optimistic expectations in the market that it had finally detached from its long-standing correlation with U.S. tech stocks. On Tuesday, Bitcoin increased by 6.77%, and during the early Asian session on Wednesday, it continued its upward trend, reaching a peak of $93,883 per coin. The U.S. Dollar Index, after reaching a three-year low on Monday, experienced a slight recovery. Despite a significant rebound following a sharp drop on Monday, the Nasdaq 100 Index still remains significantly below its high in late February and early March. Previously, Bitcoin was temporarily affected by a risk asset sell-off triggered by Trump's tariffs. However, since hitting a low point on April 7th, it has rebounded by more than 20%. During this process, Bitcoin's trading performance has started to resemble that of gold, which has demonstrated outstanding performance as an asset in the context of tariff uncertainty. Over the past week, Trump's fierce criticism of Federal Reserve Chairman Powell, accusing him of cutting rates too slowly, has intensified investor anxiety and reinforced the idea that "American exceptionalism" is coming to an end. At the same time, market expectations for more details about the "strategic Bitcoin reserve" plan to be disclosed in the coming weeks have also been a key driving force for the rebound in crypto assets. There are also signs of renewed bullish demand in Bitcoin's futures and options market. One clear indication is that the Bitcoin basis on the Chicago Mercantile Exchange (CME) - the price difference between spot and futures - has climbed to a three-month high, while the number of open interest contracts has shown a moderate increase.
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