Bitcoin surged to $88,900 Tuesday morning during Asian trading hours, marking its highest value in six weeks amid growing tensions between the U.S. and its trading partners. The cryptocurrency has gained 18% since hitting its 2025 low of $75,000 earlier this month, reached new high in cryptocurrency dominance, showing renewed strength as traditional financial markets struggle. Bitcoin's rise coincides with gold's climb to a record high near $3,500 per ounce as investors increasingly turn to alternative assets.
What to Know:
- Bitcoin has reached its highest price since March 7, gaining 18% from April lows
- The cryptocurrency appears to be decoupling from stock markets while re-correlating with gold
- Bitcoin dominance has hit 64.6%, its highest level since February 2021
The asset's upward trajectory comes as U.S. stock markets started the week with significant losses, with all three major indexes—the S&P 500, Nasdaq, and Dow Jones—falling approximately 2.5%. This divergence between Bitcoin and traditional markets has been noted by industry observers as particularly significant.
"Massively bullish," remarked Satoshi Action Fund founder Dennis Porter regarding Bitcoin's apparent decoupling from broader financial markets.
Tensions between President Donald Trump and Federal Reserve Chair Jerome Powell have intensified, with Trump labeling Powell a "major loser" for his reluctance to reduce interest rates. The political friction has coincided with market instability that has erased approximately $2.5 trillion from the S&P 500 since its April 9 high, which followed a 90-day tariff "pause," according to financial newsletter The Kobeissi Letter.
International relations have further complicated the economic landscape. China issued warnings on April 20 that countries cooperating with the United States in ways that compromise Chinese interests would face retaliation.
Just one day later, Japanese Prime Minister Shigeri Ishiba stated that his country would not continue making concessions in U.S. tariff negotiations, emphasizing that "If Japan concedes everything, we won't be able to secure our national interest."
Economic analyst Alex Krüger offered a stark assessment of the situation, stating, "The US is trying to commit economic suicide, and everyone is dumping US assets in response." This sentiment appears to be reflected in the movement of capital toward assets traditionally viewed as stores of value.
Safe-Haven Assets Gain as Traditional Markets Falter
The correlation between gold and Bitcoin has reemerged for the first time in months, with the precious metal rising over 15% since April 7, slightly trailing Bitcoin's 18% gain during the same period. Market analysts suggest these parallel increases indicate investors are pricing in U.S. dollar weakness and increased economic instability.
The Kobeissi Letter noted that bonds, traditionally considered safe-haven assets during market uncertainty, appear to have lost favor among investors. Instead, capital seems to be flowing toward gold and cryptocurrencies, particularly Bitcoin. Social media commentator Lyn Alden highlighted this trend, suggesting that holders of both gold and Bitcoin have benefited while traditional stocks and bonds declined.
The influx of capital into cryptocurrency markets has been substantial, with more than $350 billion entering the space since the April 7 market dip. However, the distribution of this new investment has been notably uneven.
Bitcoin has captured the vast majority of incoming funds, while alternative cryptocurrencies have largely failed to participate in the rally.
Bitcoin Dominance Reaches Multi-Year High
Bitcoin's market dominance—its share of the total cryptocurrency market capitalization—has climbed to 64.6% as of April 22.
This represents the highest level of Bitcoin dominance observed since February 2021, reflecting Bitcoin's strengthening position relative to other digital assets.
The divergence between Bitcoin and alternative cryptocurrencies has become increasingly pronounced. Ethereum, the second-largest cryptocurrency by market capitalization, has fallen below $1,600. Other major cryptocurrencies have similarly struggled, with XRP approaching $2, Binance Coin dropping under $600, and Solana weakening to $135.
This pattern suggests that investors currently favor Bitcoin over other digital assets, perhaps viewing it as a more established store of value during periods of economic uncertainty. Market analysts indicate that conditions favorable for alternative cryptocurrencies to outperform Bitcoin—commonly referred to as "altseason" by cryptocurrency enthusiasts—remain distant.
Closing Thoughts
Bitcoin's strong performance amid deteriorating economic conditions underscores its evolving role in the global financial ecosystem. As tensions between major economies escalate and traditional markets show signs of weakness, Bitcoin has demonstrated remarkable resilience.
Its correlation with gold and divergence from equity markets suggest that institutional and retail investors increasingly view the cryptocurrency as a legitimate hedge against economic instability and currency devaluation.