$BTC NYDIG: Bitcoin has acted as the "store of value that it is" amid Trump's political chaos
The decoupling of Bitcoin from traditional risk assets is "still very early and fragile," but the change is "palpable," says Greg Cipolaro of NYDIG.
Bitcoin is beginning to act as a store of value during periods of "risk aversion in the US," marking a possible shift in its relationship with traditional assets, according to the New York Digital Investment Group.
It felt "notably different" during the trading week that ended on April 25, said NYDIG's global head of research, Greg Cipolaro, in a market note on April 25.
“We have been observing subtle changes in its behavior over the past few weeks,” he added. “The decoupling from traditional risk assets is still very nascent and fragile, but for those watching the cryptocurrency market 24/7, the change is palpable.”
“Bitcoin has acted less like a liquid and leveraged version of the beta of US leveraged stocks and more like the non-sovereign store of value that it is.”
Cipolaro noted that Bitcoin has gained more than 13% since early April, while US markets such as the S&P 500 and the Nasdaq, heavily weighted in technology, have declined amid rising global trade tensions due to tariffs from US President Donald Trump.
He added that the US dollar and long-term US Treasury bonds have also underperformed since the elections and the tariff announcements from Trump’s “Liberation Day” on April 2, which grouped all countries with various rates, with the minimum being 10%.
Gold and currencies like the Swiss franc have been consistent winners as safe havens, Cipolaro said, highlighting that Bitcoin is emerging as a non-sovereign store of value
