Bitcoin Tops $95,000 Amid Turmoil

Last week, Bitcoin exchangetraded funds (ETFs) experienced their highest inflows since December, as Bitcoin's price continued to rise amid positive developments regarding President Donald Trump’s tariff negotiations. The cryptocurrency collectively garnered over $3 billion in investments during this period. Over the past seven days, Bitcoin increased by 11%, XRP by 9%, and Solana by 8%.

Earlier this month, Trump announced a comprehensive tariff policy that triggered a significant market downturn starting April 2, leading the S&P 500 to lose $2.5 trillion in a single day. Investors quickly moved away from risky assets such as stocks and cryptocurrencies, anticipating disruptions to supply chains and rising inflation.

However, the decline slowed after Trump authorized a 90day pause on most tariffs, excluding China. This led to the S&P 500's largest singleday gain since 2008 and a 9% rebound in Bitcoin on April 9. Since the announcement of the pause, the S&P 500 has increased by 1%, but Bitcoin surged by 14%, outperforming traditional markets.

James Butterfill, research director at CoinShares, explained that this divergence indicates investors are increasingly viewing Bitcoin as a safe haven during times of economic uncertainty. Unlike stocks, Bitcoin is decentralized and not controlled by any government or central bank, making it attractive when traditional assets face turbulence. While equities suffer from tariffs and declining earnings prospects, Bitcoin remains unaffected and benefits from investors seeking alternative safe assets.