Is Bitcoin Store Of Value Status Finally Here Amid Latest Stock Market Decoupling

When Satoshi made Bitcoin, it was initially seen as a store of value. However, investor appeal, rapid growth and sharp pullbacks have heavily speculative and risk-on nature around the digital asset.

Although it could be argued that Bitcoin value over time fits well with the the store of value narrative, it has not quite lived up to that status as well as gold.

For context, the value of gold has been gaining value from its $2,584 low in December to a recent high of $3,165 high on 3 April. A 22.75% gain in the last 4 months.

Meanwhile, Bitcoin value has been declining during the same period, and is currently at a 23% discount from its peak in January.

This performance has been more akin to a risk-on asset hence lacking safe-haven and solid store of value status observed in gold.

Bitcoin’s performance has been heavily correlated with the stock market for quite some time.

But could this relationship shift in favor of more correlation to gold? U.S Treasury secretary Scott Bessent recently commented that Bitcoin is becoming a store of value.

Is Bitcoin Decoupling From the Stock Market?

What happens when Bitcoin is no longer correlated with the stock market? Will it still move like a risk-on asset or will it be correlated with gold?

Interestingly, Bitcoin has recently been showing signs of decoupling from the stock market.

The stock market has continued falling in the last 2 days but Bitcoin bears have seemingly been running out of momentum. The king of the meme coins managed to stick its neck well above the $80,000.

If Bitcoin decouples completely from the risk-on sentiment, then it may have a chance at more recovery.

However, it would be quite difficult to do so during a highly volatile and uncertain period unless a major catalyst event plays out.

This is why the Treasury secretary’s statement about Bitcoin becoming a store of value may offer some significance.

The statement does underscore the level of recognition that the cryptocurrency has achieved so far in the financial industry.

Nevertheless, gold might actually be the reason why Bitcoin showed some resilience against downside recently.

Gold tanked by over 4% in the last 2 days, indicating that investors were scooping up some investments after the downside caused by the recent tariff war escalation.

Some of the liquidity that flowed out of gold may have ended up in risk-on assets. Bitcoin value was up by roughly 3% in the last 3 days and this outcome could signal that the cryptocurrency benefited from some of the liquidity exiting gold.

What Happens if Bitcoin Earns Store of Value Status?

An asset class categorized as a store of value is usually preferred as a long term investment asset.

Bitcoin does fit this description but its difference with Bitcoin is that it has not yet earned safe haven status.

This lack of a safe haven status is why investors move liquidity out of risk-on assets and into gold in order to shield their liquidity from erosion.

Some investors feel that Bitcoin could gradually transition to safe-haven status once it becomes a reserve asset.

Reserve asset status would likely elevate Bitcoin to the same level as gold. This would allow the U.S government to start holding gold, an outcome that would likely encourage other countries and attract more institutional investment.

Bitcoin’s transition from a risk-on asset to safe-haven status may not necessarily occur in a matter of days or weeks.

It could be a gradual process that takes months or even years. This means Bitcoin still leans heavily on the risk-on side despite the recent decoupling from the stock market.

More volatility and economic uncertainty may could still weigh in heavily in favor of Bitcoin bears.