While traditional financial markets are being rattled by Donald Trump’s unpredictable tariff maneuvers, the crypto market is standing firm. According to Greg Cipolaro, head of research at New York Digital Investment Group (NYDIG), digital assets are holding steady – even as Wall Street plunges into chaos.
📊 Crypto Shows Stability Amid Political Turmoil
"Despite the bloodbath in traditional markets, crypto has remained relatively orderly," Cipolaro wrote in an April 11 research note. Historically, global risk events often cause panic in crypto – but not this time.
Cipolaro noted that perpetual futures rates in crypto remain consistently positive, showing that trader confidence hasn't faltered. And although liquidations spiked on April 6 and 7 – just after Trump announced new tariffs on April 2 – the total hit only $480 million, which he described as "well below other major liquidation events."
🪙 Tether Holds Ground, Bitcoin Doesn’t Flinch
Tether (USDT), the most widely used stablecoin in crypto trading, did briefly dip below $1, but there was no panic sell-off. This relative stability is a strong signal of continued trust in the crypto space.
Trump’s April 2 announcement brought a sweeping wave of tariffs, aimed at nearly every country. But just hours after implementation on April 9, the White House paused the tariffs for 90 days, replacing them with a base 10% global tariff – except for China, which still faces tariffs of up to 145%.
To make matters more confusing, on April 13, the administration stated that the electronics exemptions granted on April 11 were only temporary, adding another layer of market uncertainty.
📉 Bitcoin Outperforms Traditional Assets
While Bitcoin wasn’t immune to volatility, Cipolaro pointed out that it performed much better than most asset classes. BTC's volatility stayed relatively contained, even as Trump’s actions roiled traditional markets.
“Maybe investors are increasingly seeking stores of value that aren’t tied to sovereign nations – and therefore, immune to trade tensions,” Cipolaro speculated.
📉 BTC Has Pulled Back, But Interest Remains
According to CoinGecko, Bitcoin has dropped 22.5% from its mid-January high of over $108,000, and was trading at $84,730 at the time of the note. Yet sentiment hasn’t turned sour.
Cipolaro highlighted that the shrinking gap between Bitcoin’s volatility and that of other assets is making BTC increasingly attractive for risk-parity portfolios – strategies that allocate based on risk exposure rather than capital.
💡 Capital Rotation Into Bitcoin?
Some investors may be de-risking elsewhere while rotating into Bitcoin, helping support the market in times of global instability.
“Risk-parity funds allocating to Bitcoin could help dampen its volatility, making the asset more appealing and potentially fueling a positive cycle of adoption and stability,” Cipolaro said.
⚠️ But Not Everyone Is Bullish
Ruslan Lienkha, Head of Markets at YouHodler, issued a warning in his April 12 note to Cointelegraph. Despite broader market recovery, he said technical indicators paint a concerning picture.
Lienkha pointed to a potential “death cross” forming on both Bitcoin and the S&P 500 – a bearish pattern where the 50-day moving average crosses below the 200-day.
“This is generally seen as a bearish mid-term signal, suggesting markets could struggle to sustain upward momentum without a clear catalyst or a stream of positive macroeconomic news,” Lienkha added.
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