As U.S. equity markets suffer one of the worst two-day declines in history, Bitcoin (BTC) appears to be charting its own course, holding steady and even registering gains. According to Joe Burnett, Director of Market Research at Unchained, this may be a sign that Bitcoin is once again leading the market narrative, much like it did in 2020.
Stock Market Tumbles Amid Tariff Turmoil
The financial world is reeling after the Dow Jones Industrial Average plunged more than 2,200 points on Friday, April 4, compounding Thursday’s 1,679-point drop. This marks the worst two-day performance on record for the index, triggered by rising geopolitical tensions and sweeping tariffs enacted by President Donald Trump on nearly all U.S. trading partners. China has already announced retaliatory measures.
Investor sentiment has been severely shaken, with the latest AAII investor survey falling to just 19.11% on March 13—its lowest level since the onset of the COVID-19 pandemic.
Bitcoin Rises Against the Tide
In sharp contrast, Bitcoin saw a 2.2% increase in the past 24 hours, according to CoinGecko. While traditional markets face sharp corrections, Bitcoin’s relative strength is being closely watched by analysts and institutions alike.
Joe Burnett of Unchained noted on social platform X that “now may be one of the best times to build a meaningful Bitcoin position.” Although not offering financial advice, Burnett drew parallels between current conditions and the market behavior of March 2020.
“Bitcoin rapidly bottomed and recovered first (before U.S. equities) in March 2020,” Burnett wrote. “A pattern potentially repeating today.”
Why Bitcoin May Be Leading the Way
Burnett explained that because of its high volatility, Bitcoin is often the first asset to be sold during liquidity crunches. However, this also means its corrections tend to be swift, with the asset often bottoming ahead of traditional markets. Bitcoin hasn’t touched new lows since March 11, suggesting that a recovery phase could be in play.
This behavior is being seen by some as an early indicator that equities may also be close to bottoming out, particularly given the extreme bearish sentiment in broader markets.
Cautious Optimism
Despite Bitcoin’s apparent resilience, Burnett cautioned against assuming the worst is over. Should equities continue to slide aggressively, Bitcoin is unlikely to remain immune.
“If stocks continue falling aggressively over the coming weeks, it’s reasonable to expect that Bitcoin could experience another leg down too,” he noted.
Final Thoughts
While the U.S. stock market grapples with historical losses, Bitcoin’s steadiness is offering a glimmer of optimism—especially for institutions and long-term crypto investors. Whether this trend continues will depend largely on macroeconomic shifts, Fed policy, and geopolitical developments in the coming weeks.
