In the future I believe this will change, but for now the price is still very much tied to the stock market, which makes little sense to me.
Whenever the US stock market goes up (especially the NASDAQ), bitcoin goes up with it, and vice versa.
The tariffs are impacting imported goods into the US, they have nothing to do with bitcoin. There are no tariffs on bitcoin.
So why do many investors still treat bitcoin as if it were a tech stock? Bitcoin is a commodity like gold or oil, not a security or a stock.
Whatever happens to the stock market should have little to no impact on bitcoin, at least in theory.
The market is not rational and seems to have little understanding of what bitcoin is (it is a store of value).
Unlike publicly traded companies, bitcoin is not a good or service that relies on the volume of sales or on tariffs to determine its price.
In a more rational market bitcoin would not be so closely correlated to the stock market or treated as a speculative asset.
Whenever you are investing in a highly centralized company controlled by a group of people, there are always going to be trust issues.
So with stocks you are investing in a truly speculative asset. Because the humans controlling it are unpredictable, easily manipulated and corrupted.
But bitcoin is not subject to such trust issues, because it isn't controlled by anyone.
That is the revolution and beauty of bitcoin. The open-source code is a known quantity not subject to unpredictable human behavior and corruption.
If you believe that Bitcoin is a store of value, then it is logical to assume that the price of Bitcoin is highly dependent on the total money supply. Simply put, the more money there is in the world, the higher the price of Bitcoin.
When people have extra money that they cannot spend on everyday expenses - rent, utilities, food or clothing, they start investing. In doing so, they buy stocks or Bitcoin. How do you know if there is a lot of money in the world or not? Usually, a decrease in the discount rate (refinancing rate) leads to an increase in the total money supply, and its increase - on the contrary, to a decrease in the total money supply.
This is exactly the connection between the stock and cryptocurrency markets - both serve to accumulate (consolidate, sterilize) excess money supply, which would otherwise end up in the consumer market and lead to the fact that goods, works and services consumed by the population and organizations would sharply increase in price.
That is, the very presence of such entities as Bitcoin and stocks in the world allows you to control consumer inflation. This is the benefit of the stock and cryptocurrency markets for society.
