Bitcoin Has Been Showing Resilience Relative to Equities, Holding Above Key Technical Support Signals Strong Underlying Demand

Bitcoin has been showing resilience relative to equities, holding above key technical support signals strong underlying demand, according to David Hernandez

Bitcoin has been showing relative resilience to equities, with its price remaining above key technical support, a factor that signals strong underlying demand, according to David Hernandez, crypto investment specialist at 21Shares.

Despite recent market volatility, bitcoin's price has been contained within the $80,000 to $90,000 range for the better part of the past month, as investors await cues from the equities market absent a crypto-specific catalyst.

Bitcoin slipped on Thursday in the initial market reaction to Trump's sweeping tariffs announcement, but its move was small relative to most stocks and stayed between $81,000 and $83,000.

"Crypto broadly is effected by funding rates and spare capital - if money is being held because of volatility and tariff needs, then it impacts crypto, investment, speculation, and location," Davies said.

"It's important to recall that the U.S. accounts for only around 20% of crypto trading, and the world often carries on without the U.S. Bitcoin has become a ready source of liquidity and has become a canary in the coalmine of sorts as it relates to global liquidity - it responds first but also rebounds first."