For years after its inception, Bitcoin was considered a traded investment unlike traditional assets, but has recently been trading just like other risky investments as it has fallen in the wake of US President Donald Trump’s tariff announcement.
Bitcoin fell sharply on April 2nd, triggering President Donald Trump’s tariff announcement, collapsed from $84,600 to $75,000 within a week. The plunge extended the extension that began in February. On January 30th, Bitcoin was worth more than $106,000 after a fierce rally after the election.
The drop coincided with the sale of US stocks, particularly technology stocks. The week after Trump’s tariff announcement, Bitcoin surged 10.5%. This was very close to the 11.6% lost on the S&P 500, and 12% on the Nasdaq 100.
“The growing correlation of Bitcoin with the NASDAQ and S&P 500 reflects the evolving role as a macro-sensitive asset driven by institutional action and policy change.”
“Institutional investors now treat Bitcoin like tech stocks, creating synced trading patterns during macroeconomic events. This alignment has been strengthened under Trump’s pro-crypto agenda,” he adds.
“Bitcoin may be decentralized, but it doesn’t trade in a vacuum. When macros fear it, it hits just like everything else,” says Dovile Silenskyte, research director of digital assets at Wisdomtree.
Trump’s tariffs and bitcoin
Trump’s promise to make the US a new “Bitcoin hub” attracted the institution’s capital, but they also linked Bitcoin to political risks affecting traditional markets. Over the past quarter, Fritz said this evolving relationship has solidified Bitcoin’s position as a risk-on asset.
So, when tariffs caused a global flight to safety, investors quickly ended both stocks and Bitcoin, spinning a parallel 15% decline in BTC, Nasdaq and S&P 500s, primarily into a relatively safe haven. Like gold.
At the same time, news about the 90-day tariff suspension was broken, and risk-on emotions suddenly erupted. On April 9th, BTC rose 8.2%, while the S&P 500 spinned 9.5%. “This rebound is not about crypto fundamentals, it’s a classic macro-driven relief floribility, showing how much Bitcoin plugs into the broader market narrative,” says Silenskyte.
“Bitcoin is a globalization thermometer that is sensitive to international scenarios,” says Ferdinando Ametrano, Managing Director of Checksig and professor of Bitcoin and Blockchain Technology at Milan-Bicocca University.
He says that who is right will become more clear in the future, but as the relationship with typical stocks of the most active market participants wins as the other components have a buying and holding approach instead.
Bitcoin is far less volatile than its past
It points to data that suggests that cryptocurrency is declining despite the swings seen in Bitcoin recently.
“In the past five years, Bitcoin’s 90-day annual volatility has been reduced by almost half, from 95% in March 2021 to 52% in March 2025,” says Silenskyte.
What is driving this shift?
“Bitcoin has undergone structural changes towards institutionalization,” says Silenskyte.
“Bitcoin has entered an accelerated phase of institutionalization, marked by increased participation from professional asset managers and the Ministry of Corporate Treasury,” says Fritz of 21Shares. “This shift is driven by the development of regulated financial products such as spot Bitcoin ETFs, options contracts, and volatility-related derivatives, enabling sophisticated strategies such as base transactions and risk hedge exposure.”
Currently, major financial institutions allocate a portion of their portfolios to digital assets. Such an institutional footprint gradually eliminates retail-driven speculations, “fostering market structures with closer bid spreads and reduced gap risk compared to previous cycles, while “reducing the historic volatility of Bitcoin.”
Max Shannon, research analyst at Coinshares, highlights the fact that “Bitcoin’s status as a 24/7 asset means it consistently attracts liquidity and contributes to a deeper market structure.” As institutional participation grows and market infrastructure matures, “this depth increases will gradually help reduce the historic volatility of assets,” he says.
What do you expect from the price of Bitcoin now?
Donald Trump was the first openly pro-US president, and his second term is expected to lead a more friendly policy environment in the crypto market, but that doesn’t mean it’s all rosy.
“Investors should expect both volatility and opportunity,” says Dovile Silenskyte, who adds that “macro liquidity is the most powerful force in the market, and Bitcoin is no exception.
Beyond the introduction of favorable regulations on US crypto assets, “opening the European market is Bill Maikaencouraging new institutional investors to enter. Black Rock And faithfulness,” explains Ferdinand Ametrano.
Ametrano believes Bitcoin will be able to reach a “new record in the next 12-18 months” and “integrating its role in a variety of wallets.” However, please note that “price fluctuations are inevitable.”
