What to Know:

• Stocks are experiencing significant gains on Tuesday, leaving Bitcoin trailing behind.
• Positive tariff news is contributing to the stock market’s rally.
• Over a longer timeframe, Bitcoin remains relatively stable compared to the tech-heavy U.S. Nasdaq.

“Decoupling” is making a comeback, but not favorably for Bitcoin bulls. After the anticipated market downturn did not occur in the U.S., stocks are surging, while Bitcoin declines.

Two hours into U.S. trading, the Nasdaq is up 3% and the S&P 500 is close behind. Bitcoin, which had briefly crossed $80,000, retreats to just above $78,000—approaching its weekend lows of around $75,000.

This stock rebound follows historic losses prompted by President Trump’s tariff declarations last Wednesday. Positive developments, including a recent social media post from Trump about an upcoming trade agreement with South Korea, and Treasury Secretary Scott Bessent’s optimistic projections regarding U.S.-China relations, are aiding recovery.

The global stock rally reflects in Europe and Japan, with indices posting gains of 3% and 6%, respectively.

In rough terms, Bitcoin has decreased about 9% since the President’s tariff announcement while the Nasdaq shows a similar decline of around 8%. While Bitcoin has dropped nearly 30% since its mid-January peak, it remains about 14% up since last November’s election, contrasting with a nearly 10% dip in the Nasdaq.