On April 21, 2025, Bitcoin's price increased while U.S. equity markets dropped sharply, challenging the traditional correlation between the two. Bitcoin rose 2.7%, trading around $86,800, in contrast to the S&P 500, which fell 2.8%, and the Nasdaq, which dropped 3%. This price rise occurred amidst criticism from former President Donald Trump towards Federal Reserve Chair Jerome Powell, calling for interest rate cuts in response to inflation pressures. Analysts noted a growing trend where investors are shifting towards hard assets like Bitcoin and gold due to rising inflation concerns and diminishing trust in government institutions. Gold also reached an all-time high, peaking at $3,442 per ounce. The dynamics in the market suggest that many investors are liquidating short positions in Bitcoin, totaling over $97 million, indicating a potential bullish sentiment despite the bearish environment in traditional markets. As concerns over the Fed's policy continue, Bitcoin's strength against stock indices highlights its appeal as an alternative asset class.

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