Bitcoin Surges 25% Since April Despite Declining Stock Markets

Bitcoin's price has increased by 25% since April 2, reaching over $104,000 by May 12 despite declines in major stock indexes like the S&P 500. This growth occurred while traditional markets faced losses amid tariff negotiations.

Bitcoin vs Stocks

The S&P 500 declined nearly 1% in April, while Bitcoin rose during the same period.
Concerns over tariffs contributed to market volatility, with Bitcoin perceived as a potential alternative for trade settlement.
No evidence indicates that countries have used Bitcoin to avoid tariffs.

Trade Settlements and On-Chain Transactions

Speculation exists about the use of Bitcoin for international trade settlements.
Large on-chain transactions remain visible, making it difficult for governments to bypass regulations.

Currently, Bitcoin is testing a key resistance level at $105,000. If it fails to break this barrier, a retreat to the $100,000 range may occur. Analysts suggest an Inverse Head & Shoulders pattern could form if rejection happens.

Market Outlook

Investors are expected to buy dips if Bitcoin breaks through resistance.
Higher prices may highlight pullbacks as potential entry points, similar to past trends.
Risks include interest rate hikes, regulatory changes, and competition from new tokens.
ETF flows and strong wallets provide reassurance to some investors.
Independent factors like monetary policy and large investor activity also influence Bitcoin's price.

If Bitcoin continues to outperform stocks, its position as an alternative asset in global markets may strengthen. Traders are closely monitoring developments around the $105,000 level.