Bitcoin Stays Strong Amid U.S. Stock Market Decline
Bitcoin (BTC) maintained it’s value above $96,550,even as major U.S. stock indices took a hit. On Saturday morning, BTC held steady, contrasting sharply with the previous day’s stock market performance.
The S&P 500 dropped by 1.71%, and the tech-heavy Nasdaq 100 fell by 2%, losing 455 points. The Dow Jones and Russell 2000 also declined by 1.70% and 3%, respectively. The Schwab US Dividend Equity ETF (SCHD) saw a 0.5% decrease.
Key tech stocks like Nvidia, Apple, Microsoft, and Meta Platforms were among the biggest losers. The CNN Money fear and greed index stood at 35, indicating fear, while the crypto fear and greed index moved to 38, signaling greed.
Bitcoin’s resilience stems from concerns over President Trump’s tariffs and the Federal Reserve’s policy. The Fed’s recent minutes suggest a continued restrictive stance due to high inflation.Inflation rates of 3% and 3.3% in January are far from the 2% target.
Higher tariffs could lead to stagflation, a challenging economic period with high inflation and slow growth. Though, the bitcoin price chart shows promising signs. A bullish flag pattern and a cup-and-handle formation suggest a potential rebound to around $121,590.
