Bitcoin Shows Signs of Decoupling From Nasdaq as U.S. Stocks Decline

Points to Know:

• Bitcoin has remained relatively stable as stocks have experienced sharp declines since the Trump tariff announcement on Wednesday.

• The gap widened on Friday, as the Nasdaq dropped an additional 5%, while Bitcoin saw a slight increase.

• One analyst pointed out that the surge in Bitcoin buying amidst market panic is likely due to companies with Bitcoin treasury strategies aggressively purchasing the asset.

After a challenging few weeks where Bitcoin (BTC) prices seemed to move in sync with the Nasdaq, the world’s largest cryptocurrency is beginning to show signs of independence as stock prices continue to drop.

While the Nasdaq followed up its 6% decline on Thursday with another 5% drop by midday on Friday, Bitcoin is holding steady at around $83,000. This marks a 1% increase over the last 24 hours and a modest 3.5% drop since President Trump announced his tariff package on Wednesday evening.

Bitcoin is significantly outperforming crypto-related stocks such as Coinbase (COIN), MicroStrategy (MSTR), Semler Scientific (SMLR), and the miners, all of which have seen double-digit percentage declines over the past two sessions.

The broader crypto market is also showing signs of strength, with the crypto index rising, driven by 4%-5% gains in XRP, Solana’s SOL, and Cardano’s ADA.

"Bitcoin has shown remarkable resilience," said David Hernandez, crypto investment specialist at digital asset manager 21Shares. "After briefly falling below $82,000, it quickly rebounded, reinforcing its role as a macro hedge during times of economic stress."

If this decoupling continues, it could enhance Bitcoin’s appeal to institutional investors looking for refuge from volatile stock markets, Hernandez added.

Geoff Kendrick, head of digital asset research at Standard Chartered Bank, argued last week that while Bitcoin often trades like a tech stock, it could serve as a hedge during market panic, such as during the March 2023 U.S. regional banking crisis. "Over the last 36 hours, I think we can also add 'U.S. isolation' hedge to the list of Bitcoin uses," he said in a Friday note.

However, Sean Farrell, head of digital assets at Fundstrat, suggested that Bitcoin's recent strength could be driven by companies with BTC investment programs, such as Michael Saylor's strategy or GameStop's involvement. "I still believe this is due to the multibillion-dollar corporate treasury buying happening," Farrell posted on X on Friday. "But if this strength holds through the weekend, we may need to reassess."