Ari Wald suggests bitcoin and defensive stocks amid market uncertainty

In the ongoing uncertain financial landscape as of April 22, 2025, investors are being advised to reconsider their strategies, particularly with a focus on the stock market and cryptocurrency dynamics. Ari Wald, the head of technical analysis at Oppenheimer, emphasizes the need for investors to maintain a defensive posture, leaning towards quality stocks such as Netflix and considering opportunities within the cryptocurrency Bitcoin. Wald's insights suggest that, while the stock market struggled recently, with the S&P 500 down 8% in April, Bitcoin has shown positive momentum. The cryptocurrency rose above $89,000 mark amidst a backdrop of increasing inflows into U.S. ETFs tracking its price, highlighting its potential as a diversifier in investor portfolios. Strategies such as purchasing stock in Strategy, previously known as MicroStrategy, which has been actively accumulating Bitcoin over the years, are suggested as a direct play on the rising value of the cryptocurrency. The stock reflects its correlation with Bitcoin, revealing how an increase in Bitcoin’s value can positively impact the company’s reserves and overall stock performance. Wald's analysis indicates that Bitcoin, currently testing a crucial resistance level at $88,000, may break out and continue gaining further if it surpasses this level. Analysts predict that this could lead to even higher resistance levels at approximately $95,900. In addition to recommending stocks like Netflix, which has recently shown robust revenue growth, Wald cautioned against investing in EOG Resources, calling attention to the potential risks and declines in oil prices. His stance reflects a cautious approach in a landscape plagued by volatility and uncertainty in both the equity and fixed income markets. Analysts and traders alike are watching Bitcoin's unique behavior, as it has decoupled from traditional stocks in recent times despite a history of high correlation during market sell-offs. This divergence raises questions regarding the future dynamics of asset classes, given that Bitcoin's resilience and the influx of investment indicate a changing perception among investors about the role of cryptocurrencies. Wald's insights underline the intentional shift by investors towards defensive strategies amid fluctuating market conditions, recommending engagement with assets that demonstrate stability and potential for growth, particularly in cryptocurrency. As April continues, the ongoing discussions and analyses will shape investor strategies moving forward, presenting opportunities as well as risks depending on market responses and evolving economic factors.