The U.S. stock market was in turmoil this week, wiping out about $650 billion in market capitalization as major indexes fell. The Nasdaq is down about 1.4%, the Dow Jones is down 1.2% and the S&P 500 is down about 1%, although stocks are still near all-time highs.
At the same time, Bitcoin moved in the opposite direction. Bitcoin is up about 7% this week, adding about $130 billion to its market value. The overall cryptocurrency market increased by nearly $190 billion, highlighting a clear divide between traditional markets and digital assets.
Volatility was not limited to stocks. Within minutes of hitting a new all-time high, silver prices at one point fell nearly 8%, underscoring how volatile commodity trading has become.
Signs of money rotation
Experts say the move signals a rotation away from traditional safe assets and toward riskier assets, including cryptocurrencies. Bitcoin is still about 23% below its all-time high near $126,000, with some investors arguing that it has room to catch up. As of this writing, BTC is trading at $96,400, up over 1%.
The day US stocks plummeted and virtual currency prices rose. In one session, hundreds of billions of dollars disappeared from stocks and tens of billions were added to the crypto market, but experts say this pattern doesn’t happen often.
Related article: Bitcoin risks 2-month high amid tariffs and Fed shock
critics push back
Not everyone is convinced that Bitcoin’s rise is healthy. Peter Schiff, a longtime Bitcoin critic and gold supporter, called the move a “suck rally.” He argued that traders are wrong to sell gold and silver mining stocks to buy Bitcoin ETFs and crypto-related stocks.
“My guess is that some traders are taking profits from gold and silver mining stocks and buying Bitcoin ETFs and $MSTR,” he wrote.
Schiff also noted that while gold and silver are at new highs, many mining stocks are falling, which he believes is a buying opportunity for precious metals investors. He has repeatedly urged traders to sell their Bitcoin to grow their capital and move it into gold instead.
Bitcoin supporters remain confident
On the other side of the debate, Bitcoin bulls remain solid. Michael Saylor, one of Bitcoin’s most vocal proponents, recently reiterated his long-term view, simply stating that “Bitcoin is a strategy.”
RELATED: ‘Why attack Bitcoin?’ Saylor slams interviewer over tense exchange
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