Bitcoin Holds Key Support Level Against the Odds, Relative Strength Indicates Shift in Pricing Logic

BlockBeats News, April 5th. According to Cointelegraph, on April 2nd, the Trump administration announced the implementation of a comprehensive tariff policy, aiming to reverse a $1.2 trillion commodity trade deficit. This move caused the S&P 500 index to plummet 9.7% over two days, wiping out $5.4 trillion in market value, marking the largest drop in history, surpassing the $3.3 trillion record set during the March 2020 pandemic collapse. The Nasdaq 100 index's tech stocks were hit hard, with a single-day drop reaching a record level since 2022. Bitcoin's decline during the same period was only 3.7%, holding the key support level at $82,000.

Industry insiders pointed out that Bitcoin is undergoing an evolution in market positioning. While in the past, Bitcoin had a high correlation with risk assets during major macro shocks, the deviation in this trend may represent a shift in investor perception. This further departure from being seen as a risk asset consolidates its status as digital gold. Bitcoin holding the key support level at $82,000 demonstrates that structural demand remains unaffected by panic selling. Jamie Coutts, Chief Crypto Analyst at Real Vision, stated that based on the M2 money supply growth model, BTC is expected to hit $132,000 within the year.

Recent on-chain data indicates that whales are accumulating at low prices. Despite price stagnation, Glassnode data shows that Bitcoin's long-term holders are steadily increasing their holdings, surpassing a total of 13.5 million coins. Short-term holders also bought 15,000 BTC against the trend in April to bet on short-term profits. While the $132,000 year-end target may seem somewhat aggressive, the combination of M2 money supply growth and the changing geopolitical landscape's effect on the demand for store of value assets, Bitcoin's relative strength is undeniable. The market may provide a new pricing logic for crypto assets.