Trump’s Tariff Chaos Strengthens Bitcoin’s Store of Value Appeal: NYDIG

Jimmy Aki
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Bitcoin has started to behave like traditional safe-haven assets, such as gold, after former President Donald Trump announced new tariffs on April 2.

According to a report from New York Digital Investment Group (NYDIG), Bitcoin’s price rose 13% while the S&P 500 and Nasdaq dropped, the U.S. dollar weakened, and long-term Treasury bonds lost value.

Is Bitcoin Finally Becoming Digital Gold?

Greg Cipolaro, NYDIG’s global head of research, said Bitcoin is no longer just moving like a risky tech stock.

Instead, it is showing signs of being a stable store of value. While investors still prefer gold and the Swiss franc during uncertain times, Bitcoin’s steady performance during market swings suggests some now see it as a way to protect their capital.

This pattern becomes particularly evident when volatility increases across equity markets (measured by the VIX index), foreign exchange (CVIX index), and bond markets (MOVE index).

More so, as highlighted in the NYDIG market note, offerings for large, liquid assets outside the U.S. financial system remain limited.

Gold still dominates, with a roughly $22 trillion market value. Bitcoin’s $1.8 trillion capitalization now makes it the only top-ten crypto asset dedicated solely to monetary, rather than utility, functions.

Despite Bitcoin surpassing $94,000 this past week, NYDIG finds no signs of speculative excess, as funding rates remain muted and derivatives positioning steady.

Meanwhile, U.S.-listed spot bitcoin ETFs drew $3.06 billion in net inflows so far, marking the largest weekly haul since December per SoSoValue data.

Institutional Perspectives Remain Mixed

In April, NYDIG’s global head of research, Greg Cipolaro, flagged crypto’s surprising calm amid US tariff swings, noting digital assets outpaced traditional markets.

Despite tariff shocks triggering $480 million in liquidations, Bitcoin and USDT held firm. Persistent positive futures rates still showed investors were already looking at cryptos as a hedge against volatility.

The positive momentum contrasts with cautious regulatory stances in Europe. At its April 25 meeting, the Swiss National Bank explicitly rejected including Bitcoin in its reserve.

https://x.com/SimplyBitcoinTV/status/1915879917029593298

SNB Chairman Martin Schlegel was critical of Bitcoin’s extreme volatility, unpredictable price swings, and technical risks as major reasons why the token fails the SNB’s criteria for liquid, stable assets.

Schlegel said they will stick with gold and major currencies for now. The European Union has also warned that rapid growth in crypto markets could create risks for the financial system.

The SNB’s and EU’s stance has prompted concern in the crypto community, which worries that this emphasis on conventional assets from global financial players could slow institutional adoption of digital currencies.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.