Crypto vs. Stocks: Why Bitcoin Didn’t Crash with the S&P 500

April 4, 2025 by Arslan Tabish

• Bitcoin holds firm as $3.1T vanishes from U.S. stocks, sparking talk of a growing decoupling from Wall Street.
• Big names like Nvidia and Apple tumble 20%+, while Bitcoin shows strength above key support amid rising uncertainty.
• With BlackRock buying $65M in BTC and ETH forming a wedge, crypto gains attention as stocks reel from global turmoil.

As U.S. equity markets entered one of the most volatile weeks since the onset of the COVID pandemic in 2020, Bitcoin held steady. This sparked up the discourse of a possible possibility of traditional financial systems becoming disconnected from the world of cryptocurrencies.

S&P Plummets, Bitcoin Holds

Crypto Rover reported that the S&P 500 has recorded its second worst daily decline this week, wiping out more than $3.1 trillion. Nevertheless, this movement was not replicated in Bitcoin, which bucked the trend not to track the ups and downs of stock exchanges. The marked difference between the two assets has elicited lots of interest from investors and equity analysts.

Even major companies stocks such as Nvidia, Apple, Amazon, and Google fell by more than 20% while Bitcoin remained above the key support levels. Some experts have opined that the current state of BTC indicates the start of a shift away from the stock market due to some volatility or other factors amid unrest in the global economy.

Michael Saylor has been actively buying BTC, and recently, BlackRock invested $65 million in BTC to sustain investor confidence at very crucial levels. Currently, gold has thrust up over the past weeks, and due to its association with BTC and being often referred to as ‘digital gold,‘ everybody awaits this to happen.

Further increasing the market volatility, Canada responded with a 25% tariff on the imported cars from the U.S. putting further pressure on the existing trade relations and extending the doubt on the major traditional markets. On the contrary, the status of BTC as a more stable cryptocurrency and the transferring of its value are seen as positive and possibly indicating its institutionalization.

Bitcoin Poised for Breakout

Analysts have also pointed out that Bitcoin has formed a symmetrical triangle, which is usually a precursor to a large movement. Should the Bitcoin price hold the current higher low and move above the $88K resistance level, then the sentiment will transition firmly to the bulls’ side. Furthermore, negative funding rates across altcoins and Bitcoin point to a crowded short trade, a sentiment that has been observed prior to the bullish trading action.

Source: CryptoRover

With recent dividend payouts exceeding $4.17 million from BlackRock’s build fund, ETH is drawing strong attention. A possible falling wedge breakout is forming, making it a significant buying opportunity in the $1,700 to $1,800 range.

Being a volatile market, the world of crypto has stabilized and is waiting for the next big step. In the middle of this fear on Wall Street, Bitcoin remains unshaken, dropping only slightly and indicating that a change in confidence might be happening globally.