Cryptocurrencies have shown resilience in the face of heightened volatility in traditional financial markets triggered by US President Donald Trump’s fluctuating tariff policy, according to a new report from the New York Digital Investment Group (NYDIG).
Greg Cipolaro, NYDIG’s global head of research, said in an 11 April 2025 note that crypto markets have remained “relatively orderly” despite the chaos unfolding in equities.
“Historically, in broad risk-off moves, we tend to see stresses show up in crypto markets. We have yet to see that,” Cipolaro wrote.
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Bitcoin Shows Resilience After Initial Shock from Trump’s Tariff Announcement
While Bitcoin (BTC) experienced turbulence following Trump’s sweeping April 2 tariff announcement, the damage appears limited. Liquidations in perpetual futures spiked to $480 million on April 6 and 7 — significant, but modest compared to past liquidation events.
Cipolaro added that the price of Tether (USDT), the market’s most widely used stablecoin, has stayed near $1 and avoided sharp de-pegging.
Trump’s tariff regime, which initially proposed levies on all U.S. trading partners, was paused just hours after implementation on April 9. A base tariff of 10% now applies globally, while China faces rates as high as 145%.
However, continued back-and-forth from the administration — including conflicting statements on electronics exemptions — has contributed to ongoing market confusion.
The tariffs have become a crypto catalyst.
When Trump’s sweeping tariff regime rattled global markets Bitcoin initially dropped to $74K.
But then something interesting happened—it bounced.
So did ETH and SOL.
The reason was a shift in perception.We’re seeing crypto re…
— Chris l MC² (@piffie) April 9, 2025
Despite the uncertainty, Cipolaro said Bitcoin has held up better than many traditional assets. “At current prices, [Bitcoin] has fared far better than many other asset classes,” he wrote, noting that its volatility has not spiked as dramatically as in equity markets.
He suggested that investors may be increasingly turning to decentralized assets as alternative stores of value, less exposed to geopolitical shocks.
Bitcoin is currently down 22.5% from its mid-January high of over $108,000, trading around $84,730 at press time, according to CoinGecko.
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Bitcoin’s Declining Volatility May Boost Institutional Appeal, Says NYDIG Analyst
Cipolaro also observed that the narrowing gap between Bitcoin’s volatility and other assets could make it more attractive to institutional investors, especially those managing risk parity portfolios.
“Funds reallocating to Bitcoin may be helping to dampen its volatility — creating a cycle of adoption and increased stability,” he said.
However, not all analysts are as optimistic. Ruslan Lienkha, chief of markets at YouHodler, cautioned in an April 12 note that a potential “death cross” — where the 50-day moving average falls below the 200-day — is forming for both Bitcoin and the S&P 500.
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Key Takeaways
- Bitcoin has remained relatively stable despite volatility in traditional markets triggered by Trump’s tariff policy.
- Institutional interest in Bitcoin may rise as its volatility narrows compared to other assets.
- Some analysts warn of a possible bearish trend, citing technical signals like a potential “death cross.”
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