The S&P 500 Index briefly mirrored Bitcoin's volatility following US President Donald Trump’s April 2 tariff announcement, indicative of panic within traditional markets. Bloomberg analyst Eric Balchunas noted a significant spike in the S&P 500’s volatility, reaching 74, surpassing Bitcoin's 71 level, which marks a deviation from its typical below-20 volatility average. Bitcoin's volatility has historically been much higher than traditional assets. The unsettling volatility across stock markets stems from Trump's proposed tariffs on imports from trade partners, escalating duties already imposed on Chinese imports. Despite a relief rally in equity markets on April 9 due to a pause in tariffs, analysts suggest that institutional confidence remains cautious, as evidenced by recent ETF outflows. Bitfinex analysts stated that demand for ETFs has cooled, reflecting a wait-and-see approach among large investors. The outlook for Bitcoin appears mixed, with potential for long-term gains amidst ongoing market instability and concerns about government policies impacting traditional investments.

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