As traditional markets reel from a historic $5 trillion sell-off, Bitcoin’s resilience is capturing investor attention. The leading cryptocurrency’s muted reaction to macroeconomic turmoil signals a possible paradigm shift in its market role—from speculative asset to a hedge against financial instability.

Trump Tariffs Trigger Market Chaos

The turmoil began on April 2, when U.S. President Donald Trump announced reciprocal import tariffs aimed at reducing America’s $1.2 trillion trade deficit and boosting domestic manufacturing. The move sent shockwaves through financial markets.

Over the next two days, the S&P 500 shed $5 trillion in market capitalisation—its worst two-day loss on record, even surpassing the COVID-19 panic of March 2020. In contrast, Bitcoin slipped just 3.7%, trading at around $83,600 by April 5.

Bitcoin Shows Signs of Market Maturity

Unlike past global shocks, where Bitcoin often mirrored stock sell-offs, this time the digital asset appeared more stable. Analysts suggest this may mark a turning point in how investors perceive Bitcoin.

“This divergence might signal an evolution in Bitcoin’s market positioning,” said Marcin Kazmierczak, COO of RedStone blockchain oracle. He noted that Bitcoin’s fixed supply offers a stark contrast to fiat currencies, which face inflation risks during protectionist economic shifts.

Decoupling From Risk Assets?

According to Nexo analyst Iliya Kalchev, Bitcoin’s ability to hold above $82,000 despite market-wide fear shows “structural demand remains intact” even amid volatility.

However, James Wo, CEO of DFG, points out that some investors still treat Bitcoin as a risk asset, especially as Bitcoin ETFs expand institutional exposure. “It’s still influenced by macro trends,” he said, but added that consistent resilience could further cement its ‘digital gold’ status.

Analysts Eye $132K BTC by Year-End

Looking ahead, analysts remain bullish. Jamie Coutts, Chief Crypto Analyst at Real Vision, believes Bitcoin could reach $132,000 by the end of 2025, driven by rising money supply and a shift in investor sentiment.

BTC projected to reach $132,000 based on M2 money supply growth. Source: Jamie Coutts

Whether Bitcoin becomes a full-fledged safe haven or remains a volatile asset class is still unfolding. But for now, its strength during one of the biggest market shocks in history speaks volumes about its growing role in the global financial system.