Bitcoin (BTC) Rallies as Traditional Markets Take a Hit

The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell around 3% on Monday morning in New York.

At the same time, traditional financial markets took a hit. The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell around 3% by early Monday morning in New York.

Analysts cited investor uncertainty about the Fed’s independence and broader macroeconomic instability as key drivers behind the sell-off.

Despite the pressure on equities, Bitcoin rose as investors turned to assets perceived as safer stores of value. Gold, another such asset, also continued its rise, trading above $3,420 per ounce—its highest price ever.

While cryptocurrencies typically move in tandem with equities, Bitcoin's performance on Monday suggested a potential shift, behaving more like a hedge against economic and political instability.

Ethereum, the second-largest digital asset, traded flat at around $1,624. It has fallen more than 20% in the last month.

Dogecoin gained roughly 1.9%, XRP rose 0.15%, and MATIC jumped nearly 5%. Solana dipped slightly, losing about 0.5%. The TRUMP token also recorded gains of over 2%.

The uptick in Bitcoin's value followed recent developments in U.S. trade policy. Trump said “big progress” had been made after talks with a Japanese delegation, while reports indicated China may be willing to resume trade negotiations if treated with more respect.

Earlier this month, Trump had announced a new round of tariffs, contributing to earlier market stress.

While markets remain volatile, the sharp rise in Bitcoin and gold reflects investor caution and a retreat from the U.S. dollar amid political and economic uncertainty.