Bitcoin Outshines Traditional Assets as Economic Turmoil Deepens

Bitcoin Outshines Traditional Assets as Economic Turmoil Deepens

As global markets falter, some prominent voices are turning to Bitcoin as a beacon of stability. American entrepreneur-turned-politician Vivek Ramaswamy has joined the growing chorus of crypto advocates, suggesting Bitcoin could serve as a strategic hedge against the ongoing economic downturn. Responding to a recent post on X by Tether CEO Paolo Ardoino, Ramaswamy remarked, “This is becoming increasingly clear,” signaling his support for the digital asset’s long-term value proposition.

Despite the ongoing volatility across both equities and crypto, Bitcoin continues to demonstrate remarkable resilience. While gold may currently offer stronger short-term gains, Bitcoin’s five-year trajectory remains unmatched. Investors who diversified $1,000 equally across BTC, gold, and the S&P 500 five years ago would see starkly different returns today. The S&P 500 would have roughly doubled their capital to around $2,040. Gold would have delivered just under a 90% return. Bitcoin, however, would have surged to an astonishing $12,210—an elevenfold increase.

Stocks Dive, Crypto Defies the Trend

Following Liberation Day, the U.S. equity market suffered a historic two-day selloff, wiping out $6.6 trillion in shareholder value, according to Dow Jones data. Friday alone accounted for a $3.25 trillion plunge—the single worst day in U.S. stock market history. The catalyst? A wave of new tariffs introduced by President Donald Trump, sparking fears of economic isolationism and prompting investor panic.

Key indices reflected the fallout. The S&P 500 tumbled nearly 6% over those two days, surpassing losses seen in early-term periods of previous administrations. Since Inauguration Day, the Dow Jones Industrial Average has fallen 11.9%, while the S&P 500 is down 15.4%. Small-cap-focused Russell 2000 has entered bear market territory, dropping more than 25% from its November high. Even the tech-heavy Nasdaq Composite, which peaked at 20,056.25 in February, has retreated over 22%.

In stark contrast, Bitcoin has continued to attract capital. The crypto market saw an inflow of $5.4 billion during the same period, signaling growing investor confidence in digital assets.

Technical Indicators Point to Bitcoin Momentum

A notable development is the BTC/SPX ratio, which recently completed an inverse head-and-shoulders pattern—widely considered a bullish indicator. This breakout above the “neckline” at the 15 mark was followed by a successful retest, triggering renewed momentum for Bitcoin. This level also corresponds to Bitcoin’s relative peak against the S&P 500 in 2021, now seen by traders as a critical support zone.

Adding to the optimism, Bitcoin’s monthly chart has printed a green candle post-rebound—often interpreted as confirmation of bullish sentiment. Analysts highlight the 13-15 range in the BTC/SPX ratio as a key battleground now tilting in favor of crypto, supported by institutional investors and increasing attention from policymakers.

As one market strategist put it on X, “Bitcoin seems to have found solid ground, now that it’s backed by serious hodlers and even institutional interest. Unlike stocks, it’s immune to earnings compression and foreign tariffs.”

Bitcoin Maintains Edge Over Tech Giants

At the time of writing, Bitcoin is holding steady above $83,000, eyeing the crucial $85,000 resistance level. A breakout could see the cryptocurrency retesting highs above $90,000 within the next 30 days. Compared to the “Magnificent 7” tech stocks, Bitcoin has posted the least negative movement, outperforming the likes of Apple and Meta, both of which lost over 2% in Friday’s trading session.

In an environment defined by uncertainty, Bitcoin’s stability is increasingly standing out—not just as an asset, but as a symbol of financial evolution.