Bitcoin corrected from its all-time high by around $30,000. After Donald Trump took office, overvaluation was rapidly reduced. In the short term, the Bitcoin market overpriced after the election victory, but there could still be plenty of room for improvement in the long term. However, the correction to the all-time low occurred even before the new trade war. Meanwhile, there are countless negative factors. However, Bitcoin is consistently trading in a new range between $80,000 and $87,000, well above the local low.
Now there could be a turnaround – Bitcoin bulls are pointing to a relative strength that is historically unprecedented. Why this isn’t entirely true and why Bitcoin is nevertheless one of the most exciting assets in April 2025 is explained in the following article.
Bitcoin is decoupling from stocks – what’s next?
Crypto fan Cory Bates is currently commenting on a rare market phenomenon on X: He observes that, according to him, Bitcoin is, for the first time, significantly decoupling from the traditional stock market. While stocks have recently lost significant value, Bitcoin has been surprisingly stable – even posting slight gains in some cases. This development is unusual, as Bitcoin has often reacted in parallel with stocks in the past, especially during uncertain market phases. This statement suggests that Bitcoin is increasingly being perceived as an asset in its own right, specifically as a hedge against economic risks or inflationary tendencies.
While this isn’t the first time Bitcoin and stocks have diverged, the decoupling is particularly noticeable at the moment. Over the long term, the correlation between the two markets fluctuates significantly – with phases of close correlation and periods in which Bitcoin performs completely independently.
According to the chart below, there are countless examples of Bitcoin negatively correlated with stocks during certain market phases. This development is therefore not unique, but nevertheless impressive given the massive macroeconomic risks.
Well-known analyst Kyle Reidhead also points to this development: While the escalating global trade war is weighing on many traditional asset classes, including gold, the crypto market has so far remained surprisingly unaffected. This resilience suggests that cryptocurrencies are increasingly functioning as an independent financial system, largely immune to geopolitical tensions. In an environment characterized by tariffs, political interventions, and economic sanctions, this very independence could be a decisive advantage.
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