Bitcoin Has Outperformed Many Assets During Market Reaction To Tariffs

While global markets wobbled in the wake of new trade measures, crypto prices — especially Bitcoin — have shown resilience. According to Greg Cipolaro, head of research at New York Digital Investment Group (NYDIG), digital assets have so far avoided the sharp swings seen across traditional markets.

Good to know

• Bitcoin has dropped 22.5% since January but is holding steadier than many traditional assets.
• Trump’s tariff announcements caused sharp reactions in financial markets.
• Crypto volatility has stayed relatively low compared to stocks and other major assets.

Trump announced sweeping tariffs on April 2, hitting all nations with new levies before adjusting the plan just days later. On April 9, the White House paused the full-scale plan for 90 days and introduced a 10% base tariff on most countries, excluding China, which remains under duties as high as 145%. The shift triggered immediate reactions in markets worldwide.

Cipolaro noted that crypto markets stayed relatively stable through this period. “Despite the carnage in traditional financial markets, the crypto markets have been relatively orderly,” he wrote in an April 11 note. He highlighted that while some liquidations occurred — $480 million in crypto futures around April 6 and 7 — the size of those events was modest compared to previous shakeups.

Tether, the US dollar-pegged stablecoin, slipped slightly below its $1 mark but didn’t collapse or see sharp losses. Cipolaro pointed out that such behavior contrasts with how crypto usually responds during global financial panic. “We have yet to see” the kind of stress that typically hits digital assets during “broad risk-off” moves, he added.

Bitcoin itself is currently trading at $84,415, down more than 20% from its January high of over $108,000. Despite that, it has maintained relative price stability during the latest wave of global uncertainty.

One reason for this, according to Cipolaro, may be investor behavior. He suggests more funds are viewing Bitcoin as a store of value not tied to any one government. This mindset could make Bitcoin more attractive during periods of geopolitical risk or economic policy shifts.

“Perhaps investors are increasingly searching for stores of value not tied to sovereign countries and thus not affected by the trade turmoil,” Cipolaro wrote.

He also said that Bitcoin’s lower volatility — at least compared to traditional markets lately — may appeal to funds using risk parity strategies, where asset allocation is driven by volatility levels rather than just return expectations. “Risk parity funds allocating to Bitcoin can help dampen its volatility — making the asset more attractive and potentially reinforcing a virtuous cycle of increased adoption and stability,” Cipolaro explained.

Earlier in the week, former Twitter CEO and co-founder of Block, Jack Dorsey, issued a warning that Bitcoin should remain relevant in the world, for example by being seen as a means of payment.