Source: Cointelegraph Original: "{title}"
Bitcoin further intensified its divergence from the stock market at the opening of U.S. stocks on April 21, coinciding with escalating tensions in the U.S. trade war.
Trade war reactions drive Bitcoin price up
Data from Cointelegraph Markets Pro and TradingView indicates that BTC/USD broke through $88,000, reaching its highest point of the month.
After the weekly close, Bitcoin continued to rise, closely following gold, which refreshed its historical high of $3,430 per ounce.
In contrast, the stock market faced renewed pressure, with the S&P 500 and Nasdaq Composite both down over 2% at the time of writing.
Thus, the rise in Bitcoin's price seems to mark the end of its correlation with the stock market, becoming part of the reaction to trade war news.
This news includes warnings about deteriorating relations between the U.S. and both China and Japan, while U.S. President Trump resumed his attacks on Federal Reserve Chairman Jerome Powell, criticizing his interest rate policies.
"Tech stocks have been hit hard again over the past week. Nvidia (NVDA) has dropped over 15% since last Monday, while several other 'MAG 7' stocks have also seen declines of over 10%," trading resource The Kobeissi Letter wrote in a response post on X.
"Without tech stocks, this market cannot find a bottom."
Kobeissi also mentioned the downward pressure on the U.S. Dollar Index (DXY), which is trading at its lowest level since March 2022.
"As the dollar (DXY) falls to a new 52-week low below 99, Bitcoin and gold are soaring," it concluded.
"The market urgently needs to reach a trade agreement as soon as possible."
Bitcoin "institutional confidence returns"
Continuing the analysis, trading firm QCP Capital expressed an optimistic view on Bitcoin in its latest newsletter.
The firm noted in a report released to its Telegram channel subscribers that Bitcoin seems to be sharing gold's luster as a safe-haven asset against macroeconomic uncertainty, ending months of underperformance.
"With the stock market closing lower last week and continuing its pullback in April, the narrative of Bitcoin as a safe haven or anti-inflation tool is gaining attention again. If this trend continues, it could provide new momentum for institutional allocation to Bitcoin," the firm wrote.
QCP even suggested that the recent outflows from U.S. spot Bitcoin exchange-traded funds (ETFs) may soon reverse.
"In fact, we have already seen early signs of institutional confidence returning. The fund flows for spot Bitcoin ETFs turned positive last week, with net inflows reaching $13.4 million, in stark contrast to the $708 million outflow from the previous week," the report noted.
"In the options market, positions have become more balanced. Risk reversals across different maturities have flattened, deviating from the short-term options selling bias that has dominated the market for several weeks."
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