Bitcoin Surges Above $90,000 as Investors Seek Alternatives Amid Stock Market Volatility
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Bitcoin surged above $90,000 for the first time since March, climbing over 5% to reach $91,605.01 on Tuesday, according to Coin Metrics. The cryptocurrency briefly touched $91,752.00, marking an impressive 8% rebound over just two days, and a 22% recovery from its April lows.
Bitcoin’s Rise Amid Stock Market Uncertainty
The rally comes at a time when U.S. equities have been under pressure. Stocks dropped sharply on Monday after Donald Trump escalated his call for the Federal Reserve to cut interest rates, further unsettling markets. While stocks rebounded on Tuesday, investors are increasingly turning to Bitcoin and other alternatives as they seek refuge from the tumbling dollar and ongoing market turbulence.
Inflows into Spot Bitcoin ETFs have surged, recording a $381.4 million increase on Monday—the largest since January 30, and the fourth significant influx in five sessions. This surge reflects growing confidence in Bitcoin as a hedge against traditional market risks.
Resilience in Bitcoin’s Market Behavior
“Bitcoin continues showing signs of resilience,” said Ed Engel of Compass Point. Despite its historical correlation with equities often approaching 1.0 during macro sell-offs, Bitcoin’s 30-day correlation with the S&P 500 has been just 0.65, indicating a growing decoupling from traditional stock markets.
“While we remain optimistic about Bitcoin’s decoupling from equities, the recent strength comes with light trading volumes,” Engel added. “Bitcoin’s long-term holders remain committed, with buying activity from strategy-driven investors increasing as liquidity in the market declines.”
Bitcoin Technical Analysis
Chart analyst Katie Stockton notes that clearing the $88,000 resistance level would be a positive development for Bitcoin’s price action. The next major resistance target is near $95,900, with many traders and investors closely monitoring these levels.
