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Tue, Jul 15, 2025, 10:06 AM 4 min read
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Whether you’ve invested in cryptocurrency or you’re simply interested in what happens to it, you’ve probably been following Bitcoin in the news. Chances are you’ve even seen predictions about a major crash on the horizon.
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Despite these predictions, Bitcoin has thus far avoided a crash. In fact, it continues to go up. Why is this? Here’s what Andrei Jikh, a finance YouTuber and investing educator, said could be the reason in a recent video.
For many, alternative investments like cryptocurrency are riskier than traditional asset classes. However, Bitcoin has skyrocketed in value since its inception back in January 2009. In just the last year, its value has increased by roughly 76.7%, according to TradingView. Its all-time value has increased 1.01 million times over.
Not only that but Bitcoin has performed surprisingly well compared to more traditional options, like gold or stocks. To illustrate this point, consider how Bitcoin has performed over time in comparison to gold and the stock market.
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At the start of January 2011, Bitcoin had a $0 value while gold was valued at $1,423 and the S&P 500 was at 1,272. By Jul. 2, 2025, Bitcoin was trading at $108,955, gold was trading at $3,349 and the S&P 500 was sitting at 6,227. All three assets have risen, but Bitcoin in particular has surged.
So, why has Bitcoin done so well, even amidst economic turbulence?
Bitcoin has long been considered a “correlated asset,” meaning it moves in the same direction as something else. In this case, it tends to move with the stock market and tech stocks.
But back in April 2025, the S&P 500 took a sharp nosedive — a result of President Donald Trump’s tariff policies and their impact on the world at large. Many stocks, including those in the tech industry, fell. Despite this, the value of bitcoin rose from $85,162 on Apr. 1 to $94,208 on Apr. 30.
So, what does this all mean? According to Andrei Jikh, Bitcoin could be breaking free from the stock market for the first time in history. If it continues to move independently of stocks, Bitcoin could become a real uncorrelated asset.
For investors, this means that including Bitcoin in their portfolio could help reduce volatility and boost diversification. Portfolio diversification has long been a key strategy in protecting one’s investments. The last thing investors want is for all their assets to move together. If one thing falls, then so would everything else. Ideally, something will still be making money even if other things aren’t.
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