FameEX Hot Topics | Bitcoin Surges Past $88.5K as BTC Further Decouples from Stock Market

Bitcoin is increasingly asserting its independence from traditional financial markets, decoupling from equities and aligning more closely with gold amid growing global economic uncertainty. On April 21, as Wall Street opened to heightened U.S.-China trade tensions, Bitcoin surged past $88,000, matching its monthly highs, while gold reached a new all-time high of $3,430 per ounce. The U.S. dollar, in contrast, continued to slide, reflecting broader macroeconomic unease.

The divergence between Bitcoin and the stock market became more pronounced as the S&P 500 and Nasdaq Composite both tumbled over 2%. While equities faced broad sell-offs, especially in technology stocks, Bitcoin climbed, suggesting a break from the previously tight correlation between crypto and risk assets. Market sentiment was rattled by renewed trade war rhetoric, including stern warnings from China and Japan over deteriorating relations with the U.S., and President Trump’s latest criticism of Fed Chair Jerome Powell for not lowering interest rates.

Commentary from The Kobeissi Letter highlighted the sharp declines in tech, with Nvidia down more than 15% in a week and several other "Magnificent 7" stocks off by over 10%. At the same time, the U.S. Dollar Index (DXY) plunged to a 52-week low below 99. “While the USD falls, Bitcoin and Gold are surging,” Kobeissi noted, underscoring investors’ growing appetite for alternative hedges amid economic instability. The call for immediate trade deals grew louder across financial commentary.

According to market intelligence firm QCP Capital, Bitcoin is regaining its narrative as a hedge against inflation and macro risk. With equities underperforming throughout April, the case for BTC as a “digital gold” safe haven is resurfacing. This shift, if sustained, could spark renewed interest from institutional investors looking for protection against traditional market volatility and fiat currency devaluation.

QCP also pointed to signs of institutional re-entry into Bitcoin markets. Spot Bitcoin ETFs, which had seen heavy outflows, recorded net inflows of $13.4 million last week, reversing a previous $708 million exodus. In the options market, sentiment is stabilizing, with balanced positioning and a retreat from weeks of bearish put-skew dominance.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.