Cryptocurrencies demonstrate resilience against the heightened volatility in traditional financial markets instigated by the erratic tariff policy of US President Donald Trump, as per a recent NYDIG report.

Insight from Greg Cipolaro

Greg Cipolaro, NYDIG’s global head of research, mentioned in a note from April 11, 2025, that crypto markets have remained “relatively orderly” amidst the disruption in equities. He noted:

“Historically, in broad risk-off moves, we tend to see stresses show up in crypto markets. We have yet to see that.”

Bitcoin’s Reaction to Trump’s Tariffs

Following Trump’s significant tariff announcement on April 2, Bitcoin (BTC) faced volatility but showed remarkable resilience with controlled damage. Although liquidations in perpetual futures spiked to $480 million, this was relatively modest compared to past volatility events. The price of Tether (USDT), the leading stablecoin in the market, has reportedly stayed close to its $1 value, dodging significant de-pegging.

Trump’s initial proposal for tariffs on all US trading partners was halted shortly after its implementation on April 9. Currently, a base tariff of 10% is applicable globally, with specific rates for China as high as 145%. The conflicting statements from the administration regarding exemptions have led to further market confusion.

“The tariffs have become a crypto catalyst,” described a market analyst, highlighting Bitcoin’s bounce back from a drop to $74K.

Despite the uncertainty, Cipolaro stated:

“At current prices, [Bitcoin] has fared far better than many other asset classes.”

Potential Institutional Interest

Cipolaro also observed that a narrowing volatility gap between Bitcoin and other assets may attract more institutional investors, especially those managing risk parity portfolios.

However, caution was expressed by some analysts like Ruslan Lienkha, who warned of an impending “death cross” signal forming for both Bitcoin and the S&P 500.

Key Takeaways

• Bitcoin has maintained stability despite market turmoil due to Trump’s tariff initiatives.
• Institutional interest in Bitcoin is likely to rise as its volatility aligns closer to other assets.
• Some analysts foresee negative trends emerging amid technical signals.