The performance of Bitcoin and Bitcoin ETFs has decoupled from traditional U.S. equities as mounting political pressure on the Federal Reserve and a weakening U.S. dollar drive investors toward alternative stores of value, according to the latest Bitwise Crypto Market Compass report.
The cryptocurrency has posted stronger returns than both the S&P 500 and Nasdaq-100 recently, with charts showing Bitcoin maintaining an upward trajectory while these indices experienced 7%-9% declines.
According to Bitwise analysts, investors concerned about U.S. monetary policy credibility are increasingly viewing Bitcoin as a hedge against potential dollar instability, creating a shift in institutional portfolio allocations that could strengthen Bitcoin’s position as an emerging store of value.
The Bitwise report highlights how public challenges to Federal Reserve Chair Jerome Powell’s independence, coupled with the falling U.S. Dollar Index (DXY) and unstable demand, are undermining U.S. monetary credibility.
Recent data illustrate this tension in real time. While U.S. import prices fell due to shipping costs, core import prices rose, driven by industrial materials. March retail sales surged 1.4%, with automotive sales showing strength as consumers were front-running expected tariffs, according to the report.
Meanwhile, business sentiment continues to deteriorate. The Philadelphia Fed Manufacturing Index recently posted its worst reading in two years, further signaling economic uncertainty.
The U.S. Bitcoin ETF landscape continues evolving, with increasing flows across several funds. The Bitwise Bitcoin ETF (BITB) attracted approximately $23.8 million in net inflows last week, according to the report’s analysis of fund flows.
BlackRock’s iShares Bitcoin Trust (IBIT) emerged as the dominant force, recording inflows of $186.5 million over the last week.
Beyond ETF flows, corporate treasury activity also continues to drive Bitcoin demand. Japanese firm Metaplanet has further boosted institutional adoption, purchasing an additional 330 BTC at $85,000 per coin, bringing its holdings to nearly $420 million, according to the report.
Meanwhile, Strategy Inc. (MSTR) continued its aggressive accumulation strategy, acquiring 6,556 BTC for approximately $555.8 million.
Looking ahead, Charles Schwab Corp. (SCHW) executives have confirmed plans to launch spot Bitcoin trading for clients by April 2026, citing increasing client interest evidenced by growing crypto-related web traffic to the firm’s website.
