Bitcoin has recently decoupled from U.S stocks and has been following gold’s ‘safe haven’ rally. This decoupling has been attributed to the ongoing feud between President Trump and the Federal Reserve, leading investors to flee U.S dollar assets. Over the past five trading days, Bitcoin has seen a 5% rally, reaching $90k during Tuesday’s trading session. In contrast, the S&P 500 Index and Nasdaq have both experienced declines of 5% and 6% respectively.
While Bitcoin had previously moved in tandem with U.S equities as a risk-on asset since February, it began to decouple from the S&P 500 and Nasdaq Composite on April 15th. Instead, it started to show a positive correlation with gold, indicating a shift towards being viewed as a ‘risk-off asset’ or ‘safe haven’ trade. Market analysts like Tom Lee have expressed optimism about Bitcoin catching up to gold and potentially reaching new all-time highs as a non-dollar asset.
Galaxy Digital’s Head of Research, Alex Thorn, finds Bitcoin’s decoupling from U.S stocks to be remarkable but warns that it may not last. The recent sell-off in U.S dollar-based assets, driven by Trump’s threats to fire Fed chair Jerome Powell, has led to a mass investor exodus to gold, Bitcoin, and other markets. Gold has reached a new all-time high of $3.5k per ounce, while Bitcoin has lagged behind and lost over 35% of its value so far in 2025. It remains to be seen whether Bitcoin’s renewed ‘safe haven’ trade will help it regain ground against gold.
With FARTCOIN experiencing a 17% hike as whales accumulate, many are wondering how long the rally will last. The current market environment, characterized by the decoupling of Bitcoin from U.S stocks and the flight to safe haven assets like gold and Bitcoin, suggests that the rally may have some staying power. However, factors such as geopolitical tensions, economic uncertainty, and regulatory developments could influence the longevity of the rally.
Investors are closely watching the performance of Bitcoin and other cryptocurrencies in relation to traditional assets like U.S stocks and gold. The recent decoupling of Bitcoin from U.S equities and its positive correlation with gold signal a shift in investor sentiment towards alternative assets. As the feud between President Trump and the Federal Reserve intensifies, the flight from U.S dollar assets to safe haven assets like Bitcoin is likely to continue, potentially leading to further price appreciation in the cryptocurrency market.
In conclusion, Bitcoin’s decoupling from U.S stocks and its emergence as a ‘safe haven’ asset alongside gold reflects the current market dynamics shaped by geopolitical events and economic uncertainties. As investors seek refuge in alternative assets, the rally in Bitcoin and other cryptocurrencies may persist, supported by positive sentiment and increased demand from institutional investors. However, market participants should remain cautious and closely monitor developments in order to assess the sustainability of the current trend and potential risks that could impact the cryptocurrency market.
