![](\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDEvMDE5NDY1ZGEtNmEyMS03ZGU3LTkzNjUtZWE5NGNiZTJkMGI4.jpg\")
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Bitcoin is gaining renewed attention as a hedge against financial instability after holding relatively steady during a record-breaking stock market downturn that saw $5 trillion wiped from the S&P 500.<\/p>\n
The S&P 500 posted a $5 trillion loss in market capitalization<\/a> over two days, its largest drop on record, surpassing the $3.3 trillion decline in March 2020 during the initial wave of the COVID-19 pandemic, according<\/a> to an April 5 report by Reuters.<\/p>\n The record sell-off occurred after US President Donald Trump announced his reciprocal import tariffs<\/a> on April 2. The measures aim to shrink the country\u2019s estimated trade deficit of $1.2 trillion in goods and boost domestic manufacturing.<\/p>\n S&P 500 record $5.4 trillion loss. Source: <\/em>Zerohedge<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Bitcoin\u2019s (BTC<\/a>) dip after the tariff announcement was significantly smaller than traditional markets, proving Bitcoin\u2019s growing maturity as a global asset, according to Marcin Kazmierczak, co-founder and chief operating officer of RedStone blockchain oracle firm.<\/p>\n \u201cWhat we\u2019re potentially witnessing is an evolution in Bitcoin\u2019s market positioning,\u201d the co-founder told Cointelegraph, adding:<\/p>\n \u201cHistorically, Bitcoin has been strongly correlated with risk assets during macro shocks, but this divergence might signal an emerging perception shift among investors.\u201d<\/p><\/blockquote>\n \u201cBitcoin\u2019s fixed supply architecture inherently contrasts with fiat currencies that may face inflationary pressure under tariff-driven economic changes,\u201d he added.<\/p>\n Related: <\/strong><\/em>70% chance of crypto bottoming before June amid trade fears: Nansen<\/strong><\/em><\/a><\/p>\n While stocks plunged, Bitcoin dipped just 3.7% over the same two-day period, trading at around $83,600 as of April 5, according<\/a> to TradingView data.<\/p>\n BTC\/USD, 1-hour chart. Source: Cointelegraph\/<\/em>TradingView<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Despite the $5 trillion sell-off in traditional markets, \u201cBTC shows its worth, staying above its $82,000 key support level \u2014 a sign that structural demand remains intact even amid forced selling and elevated volatility,\u201d Nexo dispatch analyst Iliya Kalchev told Cointelegraph.<\/p>\n Related: <\/strong><\/em>Michael Saylor\u2019s Strategy buys Bitcoin dip with $1.9B purchase<\/strong><\/em><\/a><\/p>\n Despite Bitcoin\u2019s decoupling from<\/a> traditional stocks, its initial plunge in price signals that some investors still see Bitcoin as a risk asset, according to James Wo, the founder and CEO of venture capital firm DFG.<\/p>\n \u201cWith Bitcoin ETFs enabling greater institutional exposure, it is now even more influenced by macroeconomic trends,\u201d Wo told Cointelegraph, adding:<\/p>\n \u201cHowever, if Bitcoin remains resilient amid ongoing uncertainty, its hard-capped supply and decentralized nature could not only strengthen its \u2018digital gold\u2019 narrative but also position it as an even more reliable store of value.\u201d<\/p><\/blockquote>\n Despite the current lack of momentum, analysts are confident in Bitcoin\u2019s upside potential for the rest of 2025.<\/p>\n BTC projected to reach $132,000 based on M2 money supply growth. Source: <\/em>Jamie Coutts<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n The growing money supply could push Bitcoin\u2019s price above $132,000<\/a> before the end of 2025, according to estimates<\/a> from Jamie Coutts, chief crypto analyst at Real Vision.<\/p>\nBitcoin may emerge as \u201cdigital gold\u201d amid Trump tariff talks<\/h2>\n