Bitcoin defies the stock market chaos caused by Trump

As stocks and commodities plummet, Bitcoin holds firm at $83,889

In a day marked by panic in traditional markets, triggered by escalating trade tensions following US President Donald Trump's tariff policy announcements and China's response, Bitcoin (BTC/USDT on Binance) demonstrated surprising stability, closing slightly up 0.81% at $83,889. The world's leading cryptocurrency entered a sideways consolidation phase on March 18, ignoring the strong volatility plaguing stocks and commodities.

Technically, the Bitcoin price held above horizontal support at $81,200, but continued to trade below the 50- and 200-period EMAs, reflecting underlying bearish sentiment. / TradingView

###Contradictory Economic Data Fails to Destabilize Bitcoin

Despite the release of mixed US economic data, which included a rise in unemployment to 4.2% (beating the 4.1% forecast) and an unexpectedly high increase in nonfarm payrolls to 228,000 jobs created (versus the 135,000 forecast), the price of bitcoin remained unfazed.

Powell Rules Out Emergency Rate Cut

In an interview today, Federal Reserve (FED) Chairman Jerome Powell ruled out the possibility of an emergency interest rate cut, citing the uncertainty surrounding tariffs and their potential impact on inflation. The FED maintains its goal of reducing inflation to 2% before considering further rate cuts. Risk aversion in conventional markets caused a sharp drop in 10-year Treasury yields, which hit a low of 3.86%.

Despite Powell's remarks, the federal funds futures market shows a significant decline in bets that the Fed will keep the interest rate at 4.50%, falling to 66.7% from 81.5% the previous week. For the June 18, 2025, meeting, expectations for a 25 basis point cut stand at 63.9%. The Fed is scheduled to issue a rate decision on May 7.

Bitcoin Acts as a Safe Haven

In contrast to the collapse in stocks and commodities, Bitcoin appeared to act as a safe haven asset. This was evidenced by the increase in total Bitcoin futures open interest to $53.78 trillion, an increase of 2.34% over the past 24 hours, marking the highest level in the past four days.

Options Market Shows Slight Decline

Open interest in the Bitcoin options market decreased slightly to $25.48 trillion from $25.93 trillion the previous day. However, bullish (call) positions predominate at 58.94%, compared to bearish (put) positions at 41.06%. This suggests that investors are betting on further Bitcoin upside.

Trading Volume Rebound

Bitcoin trading volume rebounded for the fourth consecutive day, reaching $6.73 trillion in the spot market, the highest amount since the low of $5.39 trillion recorded on March 30. This increase in volume validates the support Bitcoin has been building in recent days, although the negative spot CVD of $93.33 million indicates that bears are still exerting some pressure.

Moderate Capital Outflows from Bitcoin ETFs

The Bitcoin ETF market saw a net capital outflow of $165 million in the past week, suggesting a moderate outflow from institutional investors.

Bitcoin Sideways Consolidation in a Tight Range

Technically, the Bitcoin price remained above horizontal support at $81,200 but continued to trade below the 50- and 200-period EMAs, reflecting underlying bearish sentiment. The cryptocurrency consolidated in a tight range, with support at $81,200 and resistance at $88,000.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. The cryptocurrency market is highly volatile and carries significant risks.