Bitcoin Defies Market Selloff, but Below-Average Trading Levels Suggest Weakness

Published 2025-04-04, 01:36 a/m

While traditional financial markets experienced severe turbulence on Thursday, April 3, 2025, with major U.S. indexes posting significant losses following President Donald Trump’s sweeping new tariff announcement, Bitcoin (BTC) has demonstrated surprising resilience.

The cryptocurrency is holding relatively stable at $81,712, down just 0.96% (-$793.23) over the past 24 hours, showcasing its potential as a store of value during periods of heightened market volatility.

This stability comes despite the broader market panic that has seen the Dow Jones Industrial Average drop 1,331.99 points (-3.15%) to 40,893.33, the NASDAQ fall 864.8 points (-4.91%) to 16,736.24, and the S&P 500 decline 216.73 points (-3.82%) to 5,454.24.

Bitcoin Holds Steady as Tariffs Take Down Global Markets

Bitcoin’s trading volume has surged to $52.7 billion, significantly exceeding its daily average and indicating heightened investor interest despite the modest price movement.

While the cryptocurrency is currently trading below both its 50-day average price of $87,992 and 200-day average of $86,286—suggesting some bearish pressure—its relative stability compared to traditional markets is noteworthy. The cryptocurrency has traded within a daily range of $81,302 to $83,782, displaying considerably less volatility than equity markets, which have seen wild swings in response to the tariff news.

Institutional adoption continues to provide support for Bitcoin’s price floor. Tether recently reported acquiring 8,888 Bitcoins, bringing its holdings to over 100,000 BTC valued at approximately $8.46 billion. This move aligns with other institutional investors like Metaplanet expanding their Bitcoin reserves as a hedge against traditional market uncertainty and potential currency devaluation resulting from trade conflicts.

Global Markets Selloff After Trump’s Announcement of “Reciprocal” Tariffs

The traditional financial markets are reeling from President Trump’s announcement of “reciprocal” tariffs that target imports from nearly every nation worldwide.

The market sell-off has extended beyond equities, with significant movements across commodities and currencies. Oil prices have plummeted 7.45% to $66.37 per barrel, while gold has dropped 1.05% to $3,132.8. The VIX, often referred to as the market’s “fear gauge,” has surged 28.82% to 27.71, reflecting heightened investor anxiety.

Currency markets have also experienced notable shifts, with the US Dollar Index falling 1.85% to 101.88, while the Euro gained 1.833% against the dollar, rising to 1.105. The Japanese yen strengthened significantly against the dollar, with USD/JPY dropping 2.198% to 145.96, as investors sought traditional safe-haven assets amid the market turmoil.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

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