TL;DR
- While major stock indexes are posting losses above 3%, the crypto market is showing moderate and sustained gains.
- Gold, oil, and Treasury bonds are losing strength as safe havens amid uncertainty, while digital assets are quickly attracting capital.
- Analysts highlight a lower correlation between the crypto market and equities, which could strengthen its role as an alternative in the face of economic deterioration.
As global stock markets plunge for the second consecutive day due to escalating trade tensions between the United States and China, the crypto market is showing the opposite behavior. Bitcoin and some cryptocurrencies are recording moderate growth amid a chaotic financial scenario.
The imposition of reciprocal tariffs between the two largest economies in the world triggered a sharp pullback on Wall Street. The Dow Jones lost over 1,200 points on Friday alone, while the S&P 500 and Nasdaq recorded losses of more than 3%. Meanwhile, Europe and Asia also suffered widespread losses, and the VIX volatility index reached levels not seen since the early months of the pandemic.
Bitcoin Shows Its Full Resilience
In contrast, the crypto market has stayed afloat amid widespread panic, driven by investors seeking refuge. As traditional assets continue to deteriorate, digital instruments are once again attracting capital rapidly, reflecting growing confidence amid economic and geopolitical uncertainty.
According to the latest data from CoinMarketCap, Bitcoin (BTC) is trading just below $83,100 and has risen 1.3% in the last 24 hours. Ethereum (ETH) is around $1,795, up 0.85%. XRP (XRP) is trading at $2.10, showing a 4.57% increase in the same period. BNB (BNB) is trading at approximately $593, up 1.07%.
Solana (SOL) is around $118.60, with a gain of 3.64%. Dogecoin (DOGE) is trading at $0.167, up 5.52%. Cardano (ADA) is valued at $0.652, after increasing 3.50%. TRON (TRX) is around $0.239, up 2.33%. Polkadot (DOT) is trading at $4.04, rising 1.25%. Lastly, Litecoin (LTC) is priced at $84.00, with a gain of 2.10%.
The rebound in cryptocurrencies comes in parallel with a collapse in commodities. Oil dropped more than 8%, copper fell over 7%, and gold lost value despite its historic role as a safe haven. Even U.S. Treasury bonds reflected a defensive shift, with yields falling broadly and a curve increasingly tilted toward forecasting a recession.
Is the Crypto Market Decoupling from Traditional Finance?
Analysts warn that while the growth in cryptocurrencies may seem temporary, recent behavior shows a slowdown in the correlation between the crypto market and equities. This partial decoupling could persist if pressure on stocks continues and if monetary policies fail to contain the global economic slowdown.
Digital assets are once again positioning themselves as an alternative amid the weakening of traditional financial instruments, showing a resilience not seen since the bull cycle that preceded the collapse of the DeFi ecosystem in 2022.
