Bitcoin Steady In The Eye Of The Storm

Bitcoin Decouples From Markets

Last week, bitcoin closed at $82k on Monday and ended the day at $83k on Friday.

The vast majority of stocks and commodities in the markets last week was in a liquidation event not seen since the pandemic.

While bitcoin and markets tend to be correlated when times are “normal,” last week’s performance is evidence that it may decouple from markets when investors are heading for the door.

Bitcoin can have the dynamics of a risk asset when people are risk-on and benefit alongside markets in that risk-on environment. However, in risk-off environments, and at a scale witnessed last week, bitcoin’s predictability, it would seem, becomes more appealing.

In addition, it has attributes other than its intrinsic properties, such as its fixed supply.

It has the most robust defensive base of investors compared to any asset in the financial markets. A significant number of investors will not sell under any circumstances, which has become an intrinsic property.

Global Reserve Currency

Last week also saw the publication of Larry Fink’s 2025 Annual Chairman’s Letter to BlackRock Investors.

Under the headline “The democratization of investing”, he outlined his view that if the United States continues on its fiscal path, then bitcoin could become the global reserve currency.

While he clearly signals his view that the most recent fiscal policies adopted by the Biden administration are unsustainable, he also signals that bitcoin is a hedge against the economic downside that, in the absence of change, he envisages.

Fink’s endorsement is so impactful because of his status as an establishment figure and the weight his words carry. His support in these times of challenge and uncertainty is important and makes a difference.

Finks’ input and influence in the SEC approval of the BlackRock spot ETF and other spot ETFs is arguably the reason that bitcoin is trading at $80k+ today instead of $50k.