Bitcoin demonstrated relative stability, holding its ground near the $84,600 mark even as traditional financial markets faced significant headwinds on Thursday. The resilience came despite broader market anxiety fueled by corporate earnings disappointments and persistent concerns over Federal Reserve policy.
The wider market saw turbulence, with the Dow Jones Industrial Average declining sharply by 1.2%, shedding approximately 500 points. This downturn was significantly impacted by a steep 23% drop in UnitedHealth’s stock following a revised profit forecast. While the S&P 500 managed a slight gain of 0.2%, the Nasdaq Composite saw a minor dip of 0.13%.
Market participants remained highly attuned to signals from the Federal Reserve. Chair Jerome Powell indicated a cautious approach, suggesting potential delays in interest rate cuts pending more clarity on trade policy and its impact. Powell warned that increased tariffs could potentially hinder economic growth and elevate inflation, adding a layer of uncertainty that often affects risk assets like digital currencies.
Adding to the policy tension, President Trump amplified his critique of the Fed chair, reportedly discussing potential replacements and expressing dissatisfaction with the current monetary policy direction. This ongoing discourse contributes to the unpredictable environment investors navigate.
In the technology sphere, Nvidia experienced a second day of declines after expanded U.S. restrictions on semiconductor sales to China were announced. Conversely, chip manufacturer TSMC reported strong Q1 profits, boosted by demand for AI chips, highlighting diverging trends within the sector. Bitcoin resilience shown despite tech stock tumbles became a key talking point for crypto advocates.
Despite the market volatility, Bitcoin briefly surpassed the $85,000 level before settling in the mid-$84,000 range. This performance underscores the complex factors influencing cryptocurrency valuations, often moving independently yet still sensitive to major macroeconomic shifts. Yields on 10-year Treasuries climbed, and the U.S. dollar saw a slight increase.
Stock and bond markets are scheduled to be closed on Friday in observance of Good Friday.