FameEX Hot Topics | Bitcoin Climbs Past $88.5K, Breaking Away from Stock Market Correlation

Bitcoin is reinforcing its status as a macro hedge asset, increasingly distancing itself from stock market movements and following gold’s upward trajectory amid rising global uncertainty. On April 21, as trade tensions between the U.S. and China intensified, Bitcoin surged past $88,000—matching its monthly highs—while gold reached a record price of $3,430 per ounce. The U.S. dollar, meanwhile, slumped further, reflecting investor anxiety over economic and geopolitical volatility.

The break between Bitcoin and equities became evident as the S&P 500 and Nasdaq Composite both dropped over 2%. Unlike previous market cycles, where Bitcoin often moved in sync with tech-heavy indexes, this time BTC rose despite sharp sell-offs in major stocks. Market fears were fueled by warnings from China and Japan about worsening ties with the U.S., and President Trump’s renewed attacks on Federal Reserve Chair Jerome Powell for maintaining high interest rates.

The Kobeissi Letter underscored the pressure on the equity markets, pointing out that Nvidia had declined by over 15% in a single week, with several other mega-cap tech names—part of the “Magnificent 7”—also down by more than 10%. Simultaneously, the U.S. Dollar Index (DXY) fell below 99, reaching its lowest point since March 2022. Kobeissi noted, “While the USD falls, Bitcoin and Gold are surging,” highlighting a shift toward alternative assets amid dollar weakness and rising global risk.

QCP Capital suggested that Bitcoin’s performance could revive its perception as a safe-haven asset. With U.S. stocks sliding and April continuing to show red across equity markets, BTC’s emerging role as “digital gold” is gaining traction once again. If this decoupling trend persists, institutional demand for Bitcoin could accelerate, particularly from investors seeking portfolio diversification amid fiat depreciation and geopolitical instability.

Supporting this view, QCP highlighted positive momentum returning to institutional crypto products. U.S. spot Bitcoin ETFs, which experienced $708 million in outflows the prior week, reversed course with net inflows of $13.4 million. At the same time, the options market showed improved sentiment, with risk reversals stabilizing and the previously dominant bearish positioning beginning to fade.

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