Bitcoin is being positioned as a viable hedge against the current economic volatility, with entrepreneur and political figure Vivek Ramaswamy publicly supporting the cryptocurrency.
The Ohio gubernatorial candidate clarified his stance in response to a late Friday post by Tether CEO Paolo Ardoino, affirming that Bitcoin’s role as a financial shield is “becoming increasingly clear.” His remarks come as traditional markets continue to face major downturns, with the S&P 500 falling over 13 percent since the start of the year.
Critics point to better short-term returns from gold because the cryptocurrency market has declined, but Bitcoin demonstrates superior long-term data. During the past five years, Bitcoin’s value has expanded from $1,000 to $12,210. According to data analysis, the $1,000 gold investment only reached $900, but Bitcoin investment escalated to $12,210, whereas S&P 500 grew to $2,040.
Historic market losses shake equities
In the days following Liberation Day, U.S. stock markets faced their most significant two-day collapse in history. The sharp selloff wiped $6.6 trillion from shareholder value, with $3.25 trillion lost on Friday alone. This crash was triggered by President Donald Trump’s new tariff announcements, which unsettled markets and revived concerns over economic protectionism.
The S&P 500 slid nearly 6 percent during the two-day drop, recording steeper losses than early-term market performances under previous administrations. The Dow Jones Industrial Average has now dropped 11.9 percent since Inauguration Day, while the S&P 500 and the Russell 2000 index are down 15.4 percent and over 25 percent, respectively. The Nasdaq Composite has plummeted by more than 22 percent since its February peak of 20,056.25.
BTC/SPX ratio points to strength in Bitcoin
Bitcoin’s performance relative to the S&P 500 continues to strengthen. The BTC/SPX ratio recently completed an inverse head-and-shoulders pattern, which is often viewed as a bullish indicator. The ratio has rebounded after breaking through the 15-level neckline and pulling back. Analysts believe this move marks a support level that aligns with Bitcoin’s 2021 highs.
The market rebound has produced a green monthly candle demonstrating renewed interest from buyers. Analysts define the BTC/SPX interval from 13 to 15 as a vital region institutional investors support through their trading activities. Bitcoin Holds Steady as Tech Stocks Decline
As traditional tech giants like Apple and Meta lost over 2 percent at Friday’s close, Bitcoin remained more stable. At the time of reporting, Bitcoin was consolidating above $80,000 and was trading near $83,000. If it crosses $85,000, analysts expect it could climb beyond $90,000.