Digital Wealth Alpha Of The Week #14

Good morning Digital Asset investor,

Last week global US vs the world trade war officially started and on its first day it brought us the worst trading day for US and global markets in many years, “Liberation Day” liberated investors from their profits across the globe, nonetheless it was a great week for BTC in relative terms, we’ll explain why. Let’s dive in.
 

1. Week #14 Market Snapshot

Markets went into freefall after Trump announced his reciprocal tariffs, triggering investor panic and marking the worst trading day for US equities in 4 years. Over $2 trillion in market value was wiped out in under 24 hours. The S&P 500 and Nasdaq plummeted 3.4% and 3.8% respectively. And it seems to be just the beginning.

Bitcoin slipped below $82K yet showed immense relative strength compared to the stock market -a strong divergence- whilst Ethereum dropped under $1.7K as the sell-off rippled across digital assets.

2. The Big Decoupling: Is BTC Breaking Free?

This week’s BTC relative strength amongst the market bloodbath suggests a pivotal moment where Bitcoin appear to be asserting independence from traditional macro correlations. While equities waver on mixed inflation data and central bank uncertainty, crypto markets have quietly surged ahead.

Leading voices came out implying a singularity moment for Bitcoin, “The big decoupling”: 

Arthur Hayes suggests Bitcoin may decouple from its historical correlation with the Nasdaq due to recent tariff policies impacting fiat liquidity posting a chart highlighting a divergence between Bitcoin and the Nasdaq’s price movement which supports Hayes' argument of Bitcoin becoming a "fiat liquidity smoke alarm” implying Bitcoin could signal fiat currency instability, especially as tariffs disrupt global trade and monetary policies, a view highlighting Bitcoin's appeal as a hedge against fiat volatility.

 Tuur Demeester Highlights Bitcoin's resilience, noting its minor 0.41% drop compared to a 5% plunge in global equities, quoting a chart posted by Checkmatey showing market data from April 3, 2025. He references a long-term economic playbook, suggesting that as global markets correct decades of resource misallocation savers will turn to scarce assets like Bitcoin (referring to an 2019 American Economic Journal study).

Dan Tapiero, sees a pivotal "moment of realization" for Bitcoin referencing the VIX at 40, a high volatility index level signaling market fear, alongside a Nasdaq (NDX) freefall. Historical context from TradingView suggests that when the BTC/SPX ratio breaks its yellow downtrend, as it did in 2020, Bitcoin can outperform the S&P 500 by up to fivefold, supporting Tapiero's bullish BTC prediction

Eric Weiss points out a “dramatic outperformance” where Bitcoin is gaining traction as a hedge against traditional market volatility, unaffected by earnings or geopolitics, amid fears of a recession driven by the trade conflict.

All of the analysis suggest a turning point and the beginning of a new market regime where Bitcoin no longer simply follows equities, but will now lead it own tune. many investors will find this as the time to rethink diversification strategies in light of this emerging asymmetry.

3. Bessent admits "Bitcoin is a store of value:

   
   Scott Bessent U.S. Treasury Secretary, made the statement on a Tucker Carlson podcast, comparing Bitcoin to gold as a store of value amid economic volatility from Trump’s tariffs. The remark aligns with a broader trend where Bitcoin is increasingly seen as a hedge against inflation and market instability, as global markets react to a 10% U.S. import tax and higher tariffs on multiple countries.

4. Jack Dorsey: Square working on allowing Bitcoin payments.
   

   Jack Dorsey, CEO of Block (formerly Square), announced at a Bitcoin conference that Square is integrating Bitcoin payments into its terminals, enabling over 4 million merchants to accept the cryptocurrency. This move aligns with Dorsey's long-standing advocacy for Bitcoin, as he believes it must become a practical payment network to remain relevant, a view he shared on the Presidio Bitcoin podcast on the same day. The announcement ties into the Bitcoin 2025 conference in Las Vegas, where Square's initiative could boost mainstream adoption, coinciding with the event's promotion of discounted hotel bundles for attendees.

5. Mastercard to Enable 3.5 Billion Cardholders for Bitcoin and Crypto Transactions:

   
   Mastercard's announcement to integrate Bitcoin and crypto for 3.5 billion cardholders aligns with its Multi-Token Network, launched in 2023, to bridge traditional finance and blockchain, as detailed in Business Insider. The move follows Mastercard's filing of over 250 blockchain patents since 2015 and partnerships with firms like JPMorgan, aiming to streamline fiat-to-crypto transactions and cross-border payments. This development reflects growing regulatory clarity in the U.S., encouraging traditional financial institutions to adopt digital assets, as noted in a crypto.news report.

6. Meme of the week:

Follow this space to receive the latest Digital Assets intelligence updates as this trends accelerate.

-DWI

Disclaimer: This content is for information and education purposes only and it is not intended to serve as investment, financial, tax or legal advice. Do your own research before investing.