Market Shake-Up: S&P 500 Turns Riskier Than Bitcoin as Global Investors Recalibrate

U.S. Market Jitters Shake Wall Street Confidence as Bitcoin Holds Firm

A seismic shift is unfolding in global markets as U.S. assets lose their safe-haven status amid escalating trade tensions. In a surprising twist, bitcoin is now showing greater stability than the S&P 500—long considered the bellwether of market confidence.

Since President Trump’s tariff bombshell on April 2, the S&P 500’s seven-day realized volatility has skyrocketed from 50% to 169%, the highest level since the COVID crash of 2020, according to TradingView. Bitcoin’s volatility, while also climbing, remains significantly lower at 83%, hinting at a maturing asset class that’s beginning to trade more like digital gold than a speculative tech stock.

“Investors are facing a sobering reality,” said James Butterfill of CoinShares. “Traditional assets are no longer immune to political turbulence, while bitcoin is starting to show surprising resilience.”

Treasury Exodus Signals Waning Confidence

Instead of seeking shelter in U.S. Treasuries, as they typically do during market stress, investors are bailing out. Bond yields have surged—especially the benchmark 10-year, which jumped 62 basis points to 4.45%—and the U.S. dollar index has tumbled to 100, erasing its entire Q1 gain.

This “yields up, dollar down” scenario is more typical of emerging markets under fiscal stress, not the world’s largest economy.

“This is eerily reminiscent of the UK’s short-lived crisis during the Truss administration,” analysts at Evercore ISI noted. “Except this time, it’s the United States experiencing capital flight and eroding investor trust.”

Traditional Markets Stumble, Crypto Holds Its Ground

The S&P 500 has dropped 14% in less than two months. The Nasdaq and Dow haven’t fared much better. Bitcoin, despite its own challenges, appears increasingly attractive in comparison—especially as it shows signs of lower beta behavior in contrast to its traditionally volatile profile.

Stablecoins have seen modest inflows, but tokenized gold and BTC are capturing the lion’s share of investor interest amid the uncertainty.

“Bitcoin is no longer just a risky asset,” Butterfill said. “In this environment, it’s starting to look like a hedge—against policy missteps, inflation, and financial unpredictability.”

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