- The US stock market lost $3.25 trillion in just two days after President Donald Trump’s tariffs announcement, however, Bitcoin (BTC) continues to stand strong above a crucial support level.
- A renowned ETF expert has explained that Bitcoin was likely supported by the rising institutional demand led by MicroStrategy.
Bitcoin (BTC) shows resilience as it holds above a crucial support level at $82k while decoupling from the US stock market which has witnessed a significant level of sell-off after the country’s reciprocal tariffs. As we comprehensively detailed in our last news piece, US President Donald Trump has announced that the European Union (EU) faces a 20% tariff while China, Vietnam, and Thailand face 34%, 46%, and 36%, respectively.
On April 3, investors reacted by pulling $2.85 trillion from the US stock market. Fascinatingly, that did not end there, as an additional $1.5 trillion was taken out of the market on April 4. In total, $3.25 trillion was removed from the market, making it the “worst two-day risk asset dump” in five years according to data.
Against the backdrop of this, the crypto market led by Bitcoin recorded massive inflows. According to our research, a whopping amount of $5.4 billion entered the market on April 4. Meanwhile, gold, which has been on an impressive move, declined to $3000 on April 3. This has rekindled an old argument around what could be a true store of value – whether it is Bitcoin or gold.
Analysts Speak on Why Bitcoin is Holding Strong
On April 4, Bloomberg’s ETF analyst James Seyffart highlighted that Bitcoin’s resilience is a great feat for the crypto market, especially as no one expected it to hold in such a situation.
Genuinely shocked a bit by Bitcoin’s resilience. Would not have guessed it would hold above $80k in this type of broader market selloff of risk assets. Hell — even Gold is down?
Meanwhile, Blockstream co-founder Adam Back believes that Bitcoin is decoupling from risk assets. According to him, this plausible resilience might be led by the market maker’s move to take advantage of the lack of fiat liquidity to correct the recent pullback.
Contrary to this, Seyffart argues that Bitcoin’s strong hold might be due to the significant demand for the asset by heavyweight companies like MicroStrategy, GameStop, and Marathon Digital. It can be recalled that MicroStrategy recently resumed its weekly acquisition of Bitcoin.
In late March, the company purchased 22,048 BTC, bringing its total holding to 528,185 BTC at that time. Mathematically, this represents 2.5% of the total Bitcoin supply. As mentioned in our previous news brief, this amount was acquired at an average price of $67,458 per Bitcoin.
Similarly, GameStop made a huge move to acquire the asset after Strive Asset Management CEO Matt Cole advised that it should allocate some of its cash into Bitcoin investment. As we discussed earlier, he explained in a letter to GameStop Chairman and CEO Ryan Cohen that a Bitcoin move would put it ahead of its competitors.
At press time, Bitcoin was trading at $82.7k after declining by 0.1% in the last 24 hours.
