Bitcoin holds firm as stocks lose $5T in record Trump tariff sell-off
Bitcoin’s resilience to the record $5 trillion sell-off signals an “evolution in Bitcoin’s market positioning” that may fortify Bitcoin’s status as a hedge against financial instability.
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.
The S&P 500 posted a $5 trillion loss in market capitalization 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 to an April 5 report by Reuters.
The record sell-off occurred after US President Donald Trump announced his reciprocal import tariffs on April 2. The measures aim to shrink the country’s estimated trade deficit of $1.2 trillion in goods and boost domestic manufacturing.
