Bitcoin was once the rebellious outsider of the financial world—a digital antidote to centralized systems and traditional banking. But as global markets reel from renewed economic uncertainty, the world’s largest cryptocurrency is behaving less like a renegade and more like a Wall Street regular.
This shift has become particularly evident following U.S. President Donald Trump’s latest tariff announcement—a sweeping 10% blanket duty on all foreign imports. The policy, which Trump says will restore fair trade and boost domestic growth, has instead rattled investors and triggered fears of a looming recession. Major indices tumbled on Thursday: the Nasdaq dropped nearly 6%, the S&P 500 shed 5%, and the Dow followed suit with steep losses.
Bitcoin didn’t escape the fallout. The digital asset slid more than 5% over the past 24 hours to dip below $82,000—far from its all-time high near $109,000 recorded earlier this year. Ethereum and XRP followed suit, trading down to approximately $1,790 and $2.13, respectively.
For some analysts, the synchronous movement of crypto and equities is no longer a surprise—it’s a reflection of the deepening institutional presence in digital assets. Mike Marshall, head of research at Amberdata, explained that the convergence began in earnest after spot Bitcoin ETFs were approved in early 2024.
“These products made it significantly easier for large investors to access Bitcoin at scale,” Marshall noted. “As a result, it started behaving like other high-risk, growth-oriented assets—particularly tech stocks.”
Indeed, as interest rates, inflation reports, and central bank policy updates continue to guide equity markets, crypto assets are now swaying to the same economic rhythm. “Risk-on, Bitcoin climbs. Risk-off, it retreats,” Marshall summarized.
Barstool Sports founder Dave Portnoy voiced a concern shared by many crypto investors: if Bitcoin is meant to be independent of the traditional system, why does it now mirror it so closely?
“Market up, Bitcoin up. Market down, Bitcoin down,” Portnoy posted online. “What happened to being non-correlated?”
That sentiment is echoing across hedge funds and research desks. Predictions markets have also reacted swiftly to the economic uncertainty, with betting platforms like Kalshi and Polymarket now pricing in a greater than 50% chance of a U.S. recession by year’s end—up from just 40% a day earlier. A newer crypto-native platform, Myriad Markets, reflects similar odds at 53.6%.
Much of the pessimism stems from fears that tariffs could spark a global slowdown. Goldman Sachs’ Ashish Shah called the move “a growth shock,” predicting it would raise consumer prices and erode demand. Meanwhile, The Economist issued a harsh critique, labeling the policy “the most profound, harmful and unnecessary economic error in the modern era.”
Macroeconomic indicators seem to support the caution: the March Purchasing Managers’ Index showed the fastest rate of price increases since mid-2022, while consumer confidence has fallen to its lowest point in four years.
Still, not all analysts are shaken. Some, like Bitwise’s Head of Research Ryan Rasmussen, believe the turbulence is temporary. “Once the market settles from this ‘Liberation Day’ chaos, we’ll finally start seeing the market pull back upwards,” he said, reaffirming a year-end Bitcoin target of $200,000.
While volatility may persist, the broader question remains: Has Bitcoin truly become a product of the very system it aimed to disrupt?
“It’s still early,” said Bloomberg ETF analyst Eric Balchunas. “Bitcoin’s growth potential is enormous—but for now, it acts more like a tech stock than digital gold.”
Swan Bitcoin CEO Cory Klippsten sees the current downturn as a proving ground. “This is where short-term traders get shaken out,” he said. “Bitcoin’s real value lies in its long-term role as an exit from fiat—not in short-term price moves.”
Whether it remains a financial outlier or becomes a full-fledged asset class embedded in the global economy, one thing is clear: Bitcoin is no longer immune to the forces shaping the broader financial system.
