Bitcoin is gaining renewed attention as a hedge against financial instability after holding relatively steady during a record-breaking stock market downturn that saw $5 trillion wiped from the S&P 500.

The S&P 500 posted a $5 trillion loss in market capitalization over two days, its largest drop on record, surpassing the $3.3 trillion decline in March 2020 during the initial wave of the COVID-19 pandemic, according to an April 5 report by Reuters.

The record sell-off occurred after US President Donald Trump announced his reciprocal import tariffs on April 2. The measures aim to shrink the country’s estimated trade deficit of $1.2 trillion in goods and boost domestic manufacturing.

S&P 500 record $5.4 trillion loss. Source: Zerohedge

Bitcoin’s (BTC) dip after the tariff announcement was significantly smaller than

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