Andrei Jikh Explains Why Bitcoin Has Avoided a Major Crash

Andrei Jikh Explains Why Bitcoin Has Avoided a Major Crash

Bitcoin’s resilience has confounded both skeptics and experienced investors, particularly amid widespread predictions of a significant market correction. Despite persistent warnings, the world’s largest cryptocurrency has continued to appreciate, outperforming traditional assets such as gold and equities.

Bitcoin’s Exceptional Growth and Market Behavior

Since its launch in January 2009, Bitcoin has delivered extraordinary returns. Over the past year alone, its value increased by approximately 76.7%, according to TradingView data. In the long term, Bitcoin’s price has multiplied more than a millionfold. To illustrate, at the beginning of 2011, Bitcoin was nearly worthless, while gold traded at $1,423 per ounce and the S&P 500 index stood at 1,272 points. By July 2, 2025, Bitcoin had surged to $108,955, with gold reaching $3,349 and the S&P 500 climbing to 6,227. Although all three assets appreciated, Bitcoin’s growth has been particularly dramatic.

Traditionally, Bitcoin has been viewed as a correlated asset, often moving in tandem with the stock market, especially technology stocks. However, recent developments suggest a potential shift in this dynamic. In April 2025, the S&P 500 experienced a sharp decline triggered by tariff policies under President Donald Trump, unsettling global markets. Despite this downturn in equities, Bitcoin’s price rose from $85,162 to $94,208 during the same period.

Finance YouTuber and investing educator Andrei Jikh highlights this divergence as evidence that Bitcoin may be decoupling from the stock market for the first time. Should this trend persist, Bitcoin could emerge as a truly uncorrelated asset, providing investors with a valuable tool for diversification and risk mitigation. Portfolio diversification remains essential for protecting investments from broad market downturns, and an asset that moves independently can help cushion losses elsewhere.

Institutional Demand and Market Stability

Another key factor underpinning Bitcoin’s stability is the increasing interest from institutional investors. Publicly traded companies have been acquiring Bitcoin at a rapid pace, surpassing even exchange-traded funds (ETFs) in their accumulation. This aggressive buying reflects strong confidence in Bitcoin’s long-term potential and may contribute to its ongoing resilience.

Emerging Risks and Challenges

Despite its robust performance, Bitcoin faces notable risks. Prominent investor Paul Tudor Jones has warned of unprecedented social upheaval and the possibility of crashes in both stock and bond markets, particularly as artificial intelligence reshapes the economy. Such instability could adversely affect Bitcoin’s price and its perceived safety as an asset.

Additionally, Hunter Horsley, CEO of Bitwise, has cautioned that Bitcoin confronts significant challenges in the coming quarters, though he did not elaborate on specific threats. Geopolitical risks also remain a concern; AI-driven forecasts indicate that in the event of a nuclear conflict, Bitcoin’s price could decline by 10% to 80%, highlighting its vulnerability to global crises.

Outlook

While Bitcoin has so far avoided a major crash and appears to be forging a path independent of traditional markets, investors should remain vigilant regarding the evolving risks. Its future trajectory will likely depend on a complex interplay of institutional adoption, market forces, and geopolitical stability. For now, Bitcoin’s distinctive position continues to captivate and challenge conventional investment paradigms.