Michael Saylor Explains the Short-Term Correlation

However, after Donald Trump took office and introduced his tariff policy, Bitcoin lost momentum. Since February, it has dropped more than 18.49%, following the decline of the U.S. stock market. This has raised concerns about its ability to act as a hedge against financial instability.

Michael Saylor: Bitcoin‘s Stock Market Link Won’t Last

Michael Saylor dismisses claims that Bitcoin is losing its status as an independent asset. He argues that the recent connection between Bitcoin and stocks is only a short-term reaction.

Bitcoin trades like a risk asset short term because it‘s the most liquid, salable, 24/7 asset on Earth. In times of panic, traders sell what they can, not what they want to. Doesn’t mean it‘s correlated long-term—just means it’s always available.

— Michael Saylor⚡️ (@saylor) April 4, 2025

He points out that Bitcoins high liquidity and 24/7 availability make it an easy asset to sell when markets crash. In times of panic, investors sell what they can, and Bitcoin is always available for trading.

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However, he insists that this temporary trend does not mean Bitcoin will always follow stock market movements. Long term, he believes Bitcoin will remain a non-correlated asset, independent of traditional markets.

Bitcoin vs. Stocks and Gold: The Bigger Picture

Looking at the broader picture, Bitcoin‘s long-term performance tells a different story. In 2024, Bitcoin’s value skyrocketed by 121.1%, far outpacing traditional assets. The S&P 500 gained only 24.05%, while the Nasdaq 100 rose by 27.1%. Even gold, often considered the safest investment, increased by just 27.54%.

As discussions continue about Bitcoins market behavior, one thing is certain: short-term volatility does not define its long-term potential. While it may currently move in sync with U.S. stocks, history suggests Bitcoin has the ability to break free and prove itself as a truly independent financial asset.