International Trade

  April 22nd, 2025|Written by
IndexBox

Bitcoin (BTC-USD) experienced a significant surge, reaching as high as $88,000 on Monday, as reported by Yahoo Finance. This rise comes at a time when stocks have been declining, highlighting Bitcoin’s robust performance against the Nasdaq Composite (^IXIC) amidst ongoing trade tensions.

Read also: Bitcoin Faces Notable Decline Amid Trade Policy Concerns

According to Bernstein managing director Gautam Chhugani, Bitcoin’s year-to-date decline of 10% contrasts with the Nasdaq’s 16% drop, showcasing its resilience during the U.S. tariffs crisis. Chhugani suggests that Bitcoin and global blockchain assets will play a significant role in the current deglobalization trends.

Chhugani also anticipates that Bitcoin will benefit from the Trump administration’s efforts to establish a regulatory framework for cryptocurrencies, including stablecoins—digital tokens pegged to the US dollar. He notes that the U.S. government views crypto as a financial innovation proxy beyond traditional banks, with stablecoin technology gaining interest for cross-border payments and interbank settlements.

Even Federal Reserve Chair Jerome Powell has acknowledged the potential appeal of stablecoins, as Congress introduces regulations for digital assets. The surge in Bitcoin followed President Trump’s election victory, with expectations of crypto-friendly policies pushing Bitcoin to an all-time high of over $106,000 in January before settling above $80,000 in recent weeks.

Chhugani points out that while U.S. assets have seen sell-offs, Bitcoin ETFs have maintained resilience, with institutional holdings stabilizing capital within these funds. Bernstein analysts suggest that if the U.S. were to acquire Bitcoin for a strategic reserve, it could serve as a positive catalyst for the cryptocurrency market.

Source: IndexBox Market Intelligence Platform