Tech
Is Donald Trump Hedging Bitcoin (BTC) Price From Tech Stocks Crash?
Since the market opened yesterday, the S&P 500 is down 1.8%, the tech-heavy Nasdaq-100 is down 3.0%, and tech darling Nvidia (NVDA) is down 5.3%. Bitcoin typically follows stocks (especially tech stocks) in their daily movements, but this time, at the time of writing, bitcoin (BTC) is up 0.5%. What’s going on?
Narrative drives the daily movements of the market, so what narrative does Bitcoin have that the stock market doesn’t have right now?
Donald Trump will not speak at the biggest stock market conference this week; traditional investors are not anxiously awaiting what the former US president might say about Nvidia; there are no rumors that a strategic reserve for the Nasdaq-100 will be announced.
In the absence of any other strong narrative, it appears that Trump is isolating bitcoin from the price action of tech stocks. Trump may be making a bid for the presidency of the United States, and perhaps he deserves a new title: bitcoin’s decoupler-in-chief.
Whatever happens on Saturday, Trump’s speech is shaping up as a potential “event sellout,” as some market analysts have predicted. Trump could say or state anything about bitcoin during his speech; who knows what. What is certain, however, is that his words will have far-reaching effects on the cryptocurrency market.
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.