Bitcoin Smashes $89K—Dominance Hits Highest Since 2021 as Traders Yawn at Altcoins

BTC defies gravity with a six-week high—meanwhile, ’diversified’ crypto portfolios bleed. Wall Street analysts still can’t decide if it’s a store of value or a casino chip.

Stonks Sinking

Bitcoin continues to show signs of decoupling from the broader financial market, which is “massively bullish,” said Satoshi Action Fund founder Dennis Porter.

US stock markets have started the week in the red with daily losses of around 2.5% on the three major indexes, the S&P 500, Nasdaq, and Dow Jones.

President Donald Trump and Federal Reserve chair Jerome Powell continued to face off, with the central banker being labelled a “major loser” by Trump for failing to reduce interest rates.

The S&P 500 has now erased $2.5 trillion since the April 9 high after the 90-day tariff “pause,” observed the Kobeissi Letter.

On April 20, China warned that countries that cooperate with the US in ways that compromise their interests will be retaliated against.

On April 21, Japan’s Prime Minister said his country won’t keep conceding in US tariff talks. “If Japan concedes everything, we won’t be able to secure our national interest,” Shigeri Ishiba said.

“The US is trying to commit economic suicide, and everyone is dumping US assets in response,” opined economist Alex Krüger.

Where are the trade deals?

The S&P 500 has now erased -$2.5 TRILLION since the April 9th high after the 90-day tariff “pause.”

While markets await trade deals, Japan just said they “won’t just keep conceding” in US tariff talks.

Here’s what’s happening.

(a thread) pic.twitter.com/gFSoMzrbrA

— The Kobeissi Letter (@KobeissiLetter) April 21, 2025

Gold and Bitcoin are now aligning for the first time in months, observed the Kobeissi Letter. Since April 7, the yellow metal is up over 15% while BTC has gained more than 18%.

“Markets are pricing in US dollar weakness and more instability,” it said before adding, “Bonds are no longer a preferred SAFE haven.”

Bitcoin Dominance Peaks

Bitcoin dominance has also reached its highest point for four years, hitting 64.6% on April 22, according to TradingView. This is the highest it has been since February 2021, as altcoins failed to move and Ethereum continues to weaken.

More than $350 billion has entered crypto markets since the April 7 dip, but the majority of that has gone into Bitcoin.

Most of the altcoins are down on the day, with Ethereum tanking back below $1,600, XRP falling back towards $2, Binance Coin dipping below $600, and Solana weakening to $135.

Altseason is still a very long way away.