Overview
The Nasdaq Composite encountered a steep decline near 5.5% last Thursday, marking it as one of its worst performances since the year 2000. Despite the downturn in U.S. stock markets, Bitcoin demonstrated surprising resilience, closing the day up 0.7% and even climbing back over the $84,000 mark on Friday.
Key Highlights
- The Nasdaq Composite saw a drop of nearly 5.5% on Thursday, a significant downturn since 2000.
- Bitcoin posted gains of 0.7% the same day, showing strength despite market pressures.
- Analyst Caleb Franzen noted Bitcoin’s success in staying above critical support levels amidst a risk-off market environment.
Background
The decline was largely influenced by President Donald Trump’s announcement regarding global tariffs, which heavily impacted the tech-dominated Nasdaq Composite. The index’s losses were substantial but contrasted sharply with Bitcoin’s fortitude, which after an initial dip during market closures, managed to rise.
Current trading for Bitcoin is above $84,000, significantly lower than the $87,000 it was before the tariff announcement. This year, Bitcoin has fared well against the Nasdaq, posting a 10% loss compared to the index’s 11% drop.
In a recent statement, Caleb Franzen emphasized, “It’s pretty remarkable to see that bitcoin is up +3.4% today relative to the S&P 500, particularly in a risk-off environment. As I’ve recently pointed out, BTC/SPY continues to hold above its 200-day moving average cloud.”
For in-depth coverage on Bitcoin’s price movements, visit CoinDesk.
