Nasdaq Plummets but Bitcoin Stays Calm, Cool, and Collected ๐Ÿš€๐Ÿ“‰๐Ÿ’ฐ

What to know:

  • The Nasdaq Composite plummeted almost 5.5% on Thursday, a rare plunge not seen since the dawn of the new millennium ๐Ÿ•ต๏ธโ€โ™‚๏ธ
  • Bitcoin, however, remained a rock in the storm, ending the day up 0.7% and reclaiming $84,000 on Friday ๐Ÿ› ๏ธ
  • Analyst Caleb Franzen marveled at bitcoinโ€™s resilience, noting its unwavering support from the 200-day moving average during a risk-off environment ๐ŸŒช๏ธ

The U.S. stock marketโ€™s downturn, triggered by President Donald Trumpโ€™s global tariff announcement on Wednesday, sent the Nasdaq Composite Index into one of its deepest funks since the dawn of the new millennium. ๐Ÿ•ฐ๏ธ

The tech-laden Nasdaq lost 5.5% on Thursday, placing it just outside the top 20 worst single-day drawdowns since 2000, according to Investing.com. These dark days are usually reserved for the dot-com crash of 2000-2001 and the 2008 global financial crisis. Other equity measures also took a beating, with the S&P 500 index falling almost 5%. ๐ŸŒ๐Ÿ”ฅ

Contrary to the market chaos, the price of bitcoin (BTC), which often dances to the same tune as U.S. equities over short periods, marched to its own beat. The worldโ€™s largest cryptocurrency, which took an immediate nosedive after the announcement when stock markets were closed, rose 0.7% the following day, with the momentum carrying into Friday, according to Glassnode data. ๐Ÿ“ˆ๐Ÿ’ก

Bitcoin is now trading above $84,000, compared to about $87,000 before Trump began his speech. Meanwhile, Nasdaq futures are in the red as the U.S. awaits the jobs report later in the day. ๐Ÿค“๐Ÿ“Š

Bitcoin hit its 2025 low in mid-March at around $76,000, while the Nasdaq hit rock bottom on Thursday. Year-to-date, bitcoin is outperforming the Nasdaq, losing 10% compared to the indexโ€™s 11%. ๐Ÿ†๐Ÿ†

Analyst Caleb Franzen highlighted bitcoinโ€™s relative strength compared to the S&P 500 in this risk-off environment, noting its resilience around the 200-day moving average. ๐Ÿ›ก๏ธ

“Itโ€™s truly remarkable to see bitcoin up +3.4% today relative to the S&P 500, especially in a risk-off environment. As Iโ€™ve recently pointed out, BTC/SPY continues to hold above its 200-day moving average cloud,” Franzen said in a post on X. ๐Ÿฆพ๐ŸŒ

Read More

2025-04-04 12:56