US Stocks Drop 5% vs Bitcoin Rises 5.6%: The First Asset Rotation Signal of the Trump Era Has Emerged
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US Stocks Drop 5% vs Bitcoin Rises 5.6%: The First Asset Rotation Signal of the Trump Era Has Emerged
Geopolitical tensions and market anxiety during Trump's first hundred days in office unexpectedly became a tailwind for Bitcoin.
Navigating Web3 tides with focused insightsAuthor: Drop Gorn
Translation: Daisy, Mars Finance
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Bitcoin surged to $95,490 as markets hold their breath ahead of Trump's 100-day address. Investors pulled over $4 billion worth of BTC from exchanges in the past week, signaling strong bullish sentiment.
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Trump’s policy mix—including a potential Bitcoin strategic reserve and renewed tariff threats—is creating a landscape of both opportunity and risk. As equities face pressure, Bitcoin benefits from rising demand for safe-haven assets.
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On-chain data shows a sharp decline in exchange Bitcoin reserves. If market momentum and supply tightening persist, conditions are ripening for a break above the $100,000 mark.
Strong Monday Rebound
Bitcoin (BTC) rebounded strongly on Monday, climbing to $95,490 amid preparations for Trump’s 100-day speech. With major crypto policy announcements expected, investors are adjusting positions—early signs are already visible in on-chain data.
Momentum Above $95,000
CoinGecko data shows Bitcoin up 0.8% in 24 hours, reaching $95,490.92. During Monday’s trading session, BTC fluctuated between $92,953 and $95,490, maintaining recent upward momentum. Weekly performance remains solid, up 8.9% compared to last Monday, with a cumulative gain of approximately 15% over the past 30 days. The crypto market is closely watching whether Trump will provide clarity on the rumored Bitcoin strategic reserve proposal.
Massive Capital Migration
In the week following Trump’s controversial call for rate cuts, more than $4 billion worth of Bitcoin flowed out of exchanges. Investors are clearly moving tokens into cold wallets—a typical precursor to bullish price action.
Trump’s 100-Day Crypto Impact
This Bitcoin rally is no isolated event—it’s increasingly correlated with U.S. equities, especially tech giants, as markets anticipate signals from Trump’s speech. Analysts suggest that an official endorsement of a Bitcoin reserve could trigger a parabolic surge toward $100,000. Conversely, if the focus shifts too heavily toward tariffs or aggressive budget cuts, broader market stress could cap Bitcoin’s near-term upside.
According to TradingEconomics, inflation has dropped from 9.1% in 2022 to 2.4% in March 2025. Trump has quickly taken credit, but economists warn his pro-tariff stance could reignite inflationary pressures.
Cooling Rate Cut Expectations
Despite Trump’s intense pressure to cut rates—and even threats to replace Fed Chair Powell—the CME FedWatch tool indicates a 90.1% probability that rates will remain unchanged at the May 7 meeting. In short: the market heard Trump’s demands, but hasn’t priced them in yet.
Asset Rotation Under the Tariff Cloud
Trump’s persistent tariff rhetoric continues to weigh on U.S. stocks, particularly the so-called “Magnificent Seven” tech giants. This uncertainty, however, is benefiting Bitcoin—its status as “digital gold” and a hedge against volatility is gaining recognition.
In contrast, Bitcoin is up 5.6% year-to-date, while the Nasdaq, S&P 500, and Dow Jones have all declined by around 5%. Investors fleeing turbulent traditional markets are increasingly turning to Bitcoin’s relative strength.
Toward $100,000?
Geopolitical tensions and market anxiety during Trump’s first 100 days have unexpectedly become tailwinds for Bitcoin. BTC’s resilience in holding above the $90,000 level is significant—not only demonstrating downside resistance but also keeping the dream of $100,000 alive.
CryptoQuant on-chain data reveals key trends:
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Exchange Bitcoin reserves have decreased by over $4 billion since April 22
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Weekly deposit volume plunged from $237.8 billion to $233.8 billion
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A potential supply squeeze is forming
If demand remains strong while available supply keeps shrinking, Bitcoin’s breakthrough into six-figure territory may arrive sooner than most expect.
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