Crypto Soars: What’s Driving Its Surge as Markets Plunge?

Cryptocurrency Surges Amidst U.S. market Declines

This week, the crypto market has seen a meaningful rise as traditional U.S. stock indices, including the Dow Jones, S&P 500, and Russell 2000, experienced sharp drops. The U.S. Dollar Index also suffered its worst performance as April, when President Trump announced “reciprocal” tariffs.

Bitcoin (BTC) set a new record high, reaching $111,900. The total market cap of all altcoins, excluding Bitcoin, climbed to $1.29 trillion, the highest since February.

The Dow Jones, which measures 30 leading companies, fell to $41,340, down 3.45% from its peak this month.Other major indices experienced similar declines, erasing billions in value.

The U.S. Dollar Index dropped to $99.10, signaling a technical correction—a 10% price drop from a high point.

The crypto marketS strength is linked to Bitcoin’s growing role as a safe-haven asset. BlackRock’s white paper highlights this trend, suggesting that gold is becoming less reliable as a hedge against the rising U.S. public debt.

Bitcoin’s surge follows Moody’s downgrade of the U.S.credit rating, due to the mounting national debt. This aligns with S&P Global and Fitch’s previous downgrades.

Stocks and the dollar continued to fall after the House of Representatives passed Trump’s “Big Beautiful Bill,” which cuts taxes by over $4 trillion, potentially increasing the debt by $5 trillion over a decade.

On Friday, U.S. stocks dipped after Trump threatened a 50% tariff on European goods, sparking retaliatory warnings from the EU.

Despite these concerns, analysts believe Bitcoin’s fundamentals remain robust. institutional demand is rising, while supply is decreasing. Bitcoin is increasingly seen as digital gold, indicating potential long-term success.