Bitcoin\u2019s correlation with traditional stocks may be declining, but the fiat money supply remains BTC\u2019s main price catalyst. <\/p>\n
<\/span> 2905 <\/span> Total views <\/span><\/p>\n 5 <\/span> Total shares <\/span><\/p>\n<\/div>\n The evolving relationship between Bitcoin and traditional financial markets is under renewed pressure as global investors flee risk assets amid intensifying US trade tensions.<\/p>\n US-listed spot Bitcoin (BTC<\/a>) exchange-traded funds (ETFs) recorded their fourth consecutive day of outflows on April 8, with more than $326 million in net redemptions across products, according<\/a> to data from Farside Investors.<\/p>\n BlackRock\u2019s iShares Bitcoin Trust ETF (IBIT) saw the largest sell-off of over $252 million, its biggest daily outflow since Feb. 26.<\/p>\n Bitcoin ETF flows, US dollars, millions. Source: <\/em>Farside Investors<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n The selling pressure follows US President Donald Trump\u2019s April 2 announcement of sweeping reciprocal import tariffs<\/a>, which triggered a historic $5 trillion wipeout<\/a> in the S&P 500 over two days.<\/p>\n Related: <\/strong><\/em>Bitcoin may rival gold as inflation hedge over next decade \u2014 Adam Back<\/strong><\/em><\/a><\/p>\n The delayed crypto market turbulence after the tariff-related sell-off in traditional markets highlights Bitcoin\u2019s \u201cevolving relationship with traditional markets,\u201d according to Lennix Lai, global chief commercial officer at OKX exchange.<\/p>\n Lai told Cointelegraph:<\/p>\n \u201cWhile falling 26% since January\u2019s inauguration, Bitcoin\u2019s relative resilience in the first two days following the tariff announcement \u2014 dropping 6% compared to Nasdaq\u2019s 11% decline \u2014 suggests a nuanced dynamic emerging between crypto and conventional assets.\u201d<\/p><\/blockquote>\n Bitcoin initially remained firmly above the $82,000 support level but plummeted below $75,000 on Sunday, April 6.<\/p>\n BTC\/USD, 1-year chart. Source: Cointelegraph Markets <\/em>Pro<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Some industry leaders attributed Sunday\u2019s sell-off to Bitcoin\u2019s 24\/7 liquidity mechanics<\/a>, which made BTC the only large liquid asset available for de-risking over the weekend.<\/p>\n Related: <\/strong><\/em>Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur Hayes<\/strong><\/em><\/a><\/p>\n While there is an \u201cencouraging sign\u201d of a weakening correlation between Bitcoin and equities, Bitcoin\u2019s price trajectory remains tied to global liquidity conditions, Lai said, adding:<\/p>\n \u201cThough I see early signs of divergence, I believe Bitcoin remains fundamentally tied to global liquidity conditions, warranting caution amid potential market stresses \u2014 whilst gold remains as a hedge against geopolitical instability.\u201d<\/p><\/blockquote>\n \u201cWhat\u2019s most significant here isn\u2019t just price action but Bitcoin\u2019s growing conceptual influence \u2014 people increasingly view it as a valid strategic reserve asset for diversification in chaotic traditional markets,\u201d Lai added.<\/p>\n Other analysts also see the growing money supply as Bitcoin\u2019s main catalyst<\/a>.<\/p>\n \u201cBitcoin trades solely based on the market expectation for the future supply of fiat,\u201d according<\/a> to Arthur Hayes<\/a>, co-founder of BitMEX and chief investment officer of Maelstrom.<\/p>\n<\/picture><\/div>\n
Bitcoins Bitcoin remains tied to global liquidity conditions<\/h2>\n