Crypto Decoupling Becomes Hot Topic Amid Dollar’s Plunge

The cryptocurrency community is buzzing with excitement amid speculation about the nascent asset class decoupling from the U.S. stock market. 

Alex Thorn, head of research at Galaxy, has noted that Bitcoin and gold were both in the green while U.S stocks and the Nasdaq-100 index were in the red. 

Dave Portnoy of Barstool Sports also commented on the encouraging trend in a post on the X social media network.

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Ironically, crypto started recoupling with U.S. stocks right after Portnoy’s comment as stocks extended losses. 

Bitcoin is currently changing hands at $86,961 after reaching an intraday high of $88,260. Still, the cryptocurrency is up by nearly 3% over the past 24 hours.

Meanwhile, U.S. stocks are getting crushed again, with the flagship S&P 500 index dropping by more than 3%. The index is now down by nearly 13% since the start of the year.   

Earlier today, ByteTree founder Charlie Morris stated that cryptocurrency decoupling was “very bullish.” 

The emerging narrative about the loss of confidence in the U.S. dollar appears to be fueling Bitcoin’s most recent ascent.  

That said, this celebration might be premature. Bitcoin also performed rather well during the initial stock market sell-off driven by the massive tariffs announced on the so-called “Liberation Day.” However, the cryptocurrency then ended up plunging together with other risk-on assets, eventually collapsing below the $75,000 level. 

So far, Bitcoin appears to be ambidextrous, showing the qualities of both safe haven asset and a risk-on asset. That said, the cryptocurrency has substantially underperformed gold, which continues to hit record highs.