Singapore, April 7, 2025 – Bitcoin took a sharp nosedive overnight, shedding over 7% between Sunday night and Monday morning in Asia, as it decoupled from gold amid a sweeping global asset selloff. The cryptocurrency’s 40-day correlation with gold, a traditional safe-haven asset, flipped negative for the first time in months, signaling a seismic shift in investor behavior. The plunge erased Bitcoin’s earlier resilience against tariff-induced market jitters, aligning it with the chaos gripping stocks, commodities, and currencies worldwide.
The crypto market, often touted as a hedge against economic turbulence, failed to hold its ground as panic spread. After peaking late last week, Bitcoin’s value cratered, dropping from its recent highs before clawing back some losses by mid-morning Monday. The selloff mirrored broader market woes, with China’s stock market crashing 10% at the open and Asian indexes like Singapore (down 5.5%), Malaysia (4%), and Hong Kong (8.8%) reeling from trade war fears. “Bitcoin’s not immune anymore—7% drop overnight and counting. Gold’s out, crypto’s in freefall,” one X user posted, capturing the mood.
Bitcoin is trading in the range of approximately $77,000 to $79,000 USD as of this morning.
Analysts point to escalating U.S.-China trade tensions as the catalyst. President Donald Trump’s looming 34% tariffs on Chinese goods, set to hit April 10, have spooked investors, driving a flight from riskier assets like Bitcoin. Unlike gold, which has held steady as a refuge, Bitcoin’s volatility has resurfaced, shaking confidence in its “digital gold” narrative. “The decoupling from gold shows Bitcoin’s behaving more like a tech stock than a safe haven,” said crypto analyst Jamie Tan.
Latest Update (11:45 AM SGT, April 7, 2025): Bitcoin has stabilized somewhat but remains down 4% from Sunday’s close, hovering nervously as traders eye further cues. The global selloff shows no signs of abating, with oil prices dipping and equity markets on edge. Posts on X reflect the unease: “Bitcoin down, stocks down, everything’s down—where’s the bottom?” With economic uncertainty mounting, Bitcoin’s once-steady correlation with gold appears to be a casualty of a broader market reckoning.
Key Points:
- Bitcoin’s Sharp Decline: Bitcoin dropped over 7% from Sunday night to Monday morning in Asia, joining a global asset selloff after initially resisting tariff-related market pressures.
- Decoupling from Gold: The cryptocurrency’s 40-day correlation with gold turned negative, marking a significant break from its prior alignment with the safe-haven asset.
- Global Market Context: The plunge coincided with widespread market turmoil, including a 10% drop in China’s stock market and declines in Singapore (5.5%), Malaysia (4%), and Hong Kong (8.8%), driven by U.S.-China trade war fears.
- Trade War Trigger: Escalating tensions, particularly U.S. President Trump’s impending 34% tariffs on Chinese goods effective April 10, fueled investor panic and a shift away from riskier assets like Bitcoin.
- Investor Sentiment: Social media posts on X highlighted Bitcoin’s vulnerability, with users noting its fall alongside stocks and questioning its “digital gold” status.
- Latest Update: As of 11:45 AM SGT on April 7, 2025, Bitcoin has recovered slightly but remains 4% below Sunday’s close, showing signs of stabilization amid ongoing global market unease.
- Market Implications: Analysts suggest Bitcoin’s behavior now resembles that of a tech stock rather than a safe haven, with its volatility undermining confidence as gold holds firm.
