- Bitcoin is down 10% over the past 24 hours.
- But indicates that an its role as a hedge is working.
Bitcoin fell 10% over the past 24 hours to trade just under $74,700 as US President Donald Trump’s trade war continues to rock global markets.
The fall could hint at bad things to come when stock markets open, Geoff Kendrick, Standard Chartered’s global head of digital assets research, wrote in a Monday note.
“Sometimes crypto movements on Sunday tell you what stocks are going to do Monday,” he said. “If that is the case, Monday could be ugly.”
The warning comes as the White House’s trade polices are wreaking havoc across markets.
‘Man-made obliteration’
Futures tracking the Nasdaq and S&P 500 on Monday morning plunged 4.6% or more, signalling a market crash when markets open at 9:30 am in New York.
On Friday, the Nasdaq 100 fell more than 5%, and the Dow plunged over 2,200 points, prompting comparisons to October 1987, when the market collapsed 22% in a single day.
“This is a man-made obliteration,” Jim Cramer, host of CNBC’s Mad Money, said during Friday’s show, warning viewers that the setup eerily resembles the three-day decline leading into the 1987 crash. “We’ll know by Monday.”
Polymarket punters now put the chances of a US recession in 2025 at 65%. That number was under 40% just days ago.
Bettors on the crypto-betting platform also gave Bitcoin’s price a 67% chance of trading below $78,000 on April 11.
Hedge against tariff risks
Despite the carnage, Kendrick suggested that the slump could benefit Bitcoin in the long term.
His argument? That Bitcoin will soon recover to its Friday $84,000 price and prove that, while not a type of digital gold, it can still function a hedge against market turmoil.
He has previously argued that Bitcoin has consistently performed better than the so-called Magnificent Seven — megacap technology stocks like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
He has previously argued that if Bitcoin would take Tesla’s place in the group, this alternative Magnificent Seven would’ve outperformed the real one group five out of seven years since 2017.
Kendrick stuck to that argument in his Monday note.
“Bitcoin will become a hedge against tariff risks this time around,” said Kendrick. “US isolationism is akin to increased risks of holding fiat, which will ultimately benefit Bitcoin.”
Crypto market movers
- Bitcoin is down 9.5% over the past 24 hours and now trades at $75,086.
- Ethereum is down 18.8% to trade at $1,460.
What we’re reading
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- Trump’s Latest Initiative to Undo Operation Choke Point 2.0 Is on Hold — Unchained
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Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.