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Dave Portnoy, the inventor of Barstool Sports, has gone to the X platform, asking whether Bitcoin is truly independent from the U.S. stock market.  Portnoy pointed out a recurring pattern: Bitcoin’s price movements often mirror those of the stock market. He noted that when equities rise, Bitcoin rises, and when stocks fall, Bitcoin follows suit.  This has led him to question whether Bitcoin can still be considered an asset that operates outside traditional financial systems, as its price seems to behave just like other risk assets. Bitcoin’s Behavior Amid Market Turmoil For context, the week leading to the announcement of Trump’s “liberation day” tariffs provides a notable example of Bitcoin’s correlation with the broader market. As equities tumbled across Asia, Europe, and the U.S., Bitcoin also experienced a significant drop.  The largest digital asset fell by as much as 4.5%, reaching approximately $81,770. Other cryptocurrencies, including Ethereum and XRP, saw similar declines.  Industry Leaders Response In response to these observations, Michael Saylor, Executive Chairman of Strategy, presented his perspective. Saylor explained that Bitcoin’s short-term price movements are largely due to its liquidity.  Bitcoin trades like a risk asset short term because it’s the most liquid, salable, 24/7 asset on Earth. In times of panic, traders sell what they can, not what they want to. Doesn’t mean it’s correlated long-term—just means it’s always available. — Michael Saylor⚡️ (@saylor) April 4, 2025 He emphasized that, during times of panic, traders often sell assets that are the most liquid and easily accessible. This explains why Bitcoin, as the most liquid digital asset available 24/7, may experience price movements akin to stocks during market stress. However, Saylor clarified that this doesn’t imply a long-term correlation with the stock market. Notably, the volatility of Bitcoin has also been a key reason for its price fluctuations.…

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Filed under: News - @ April 4, 2025 9:18 pm