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.
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Bitcoin’s Performance as an Alternative Investment
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?
It Could Be Decoupling From the Stock Market
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.
Other Factors Affecting Bitcoin’s Performance
According to Andrei Jikh, several other factors could be buoying Bitcoin’s performance. These are liquidity, recent changes to the Fed’s regulatory policies and the fact that Bitcoin is still a highly speculative investment.
But Jikh isn’t alone in this belief.
“The reason Bitcoin hasn’t seen a major crash yet lies primarily in the surge of global liquidity,” said Utkarsh Ahuja, founder and managing partner of Moon Pursuit Capital. “Global M2 money supply continues to expand rapidly, reaching new all-time highs–and historically, Bitcoin has shown a strong correlation (80% to 85%) with this growth, albeit with [an approximate three]-month lag.”
As for regulation, the Federal Reserve (Fed) used to make it difficult for banks and other institutions to work with crypto. As a result, many simply didn’t offer crypto services. But in April, the Fed lifted its guidance on crypto for banks, meaning these institutions no longer need pre-approval to offer crypto services. As Bitcoin becomes more accessible, it could continue to skyrocket in value over the coming years.
“Bitcoin hasn’t crashed because it’s no longer just a bet — it’s becoming the benchmark. Between institutional adoption, ETF inflows and global uncertainty, BTC has matured into a macro asset with staying power,” said Ryan Grace, head of Tastycrypto, a self custody wallet. “It’s not just surviving cycles — it’s defining them.”
For now, only time will tell whether a major crash will — or will not — occur on Bitcoin’s horizon. As an investor — or a potential investor — it’s important to be aware that no investment is without risk. Do your due diligence and, if you’re considering where to put your money, take any advice or predictions with a grain of salt.
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This article originally appeared on GOBankingRates.com: The Weird Reason Bitcoin Has Avoided a Major Crash, According to Andrei Jikh
