Despite chaotic swings in global financial markets sparked by former U.S. President Donald Trump’s erratic tariff policies, the crypto sector has remained “relatively orderly,” according to Greg Cipolaro, global head of research at New York Digital Investment Group (NYDIG).
In an April 11 note, Cipolaro highlighted that while traditional markets have seen increased stress and volatility, the cryptocurrency market has held its ground. “Historically, in broad risk-off moves, we tend to see stresses show up in crypto markets. We have yet to see that,” he wrote.
Cipolaro pointed to persistently positive crypto perpetual futures funding rates, even amid a $480 million liquidation spike in early April—an event that followed Trump’s initial tariff announcement on April 2. While significant, this figure pales in comparison to past market shakeouts.
Trump’s sweeping tariffs briefly levied charges on nearly all imports before being paused just days later. The uncertainty has rattled traditional markets, with spikes in stock, bond, and forex volatility. Yet Bitcoin and major crypto assets have shown resilience.
Tether (USDT), a dollar-pegged stablecoin often used in volatile periods, dipped below its $1 peg but did not experience a sharp drop, further signaling stability in the crypto space.
Bitcoin, currently trading around $84,500, is down 22.5% from its January highs but has remained largely flat over the past 24 hours. Cipolaro noted that BTC’s volatility hasn’t risen to levels seen in traditional markets, making it more attractive to risk-parity funds seeking diversification.
“Perhaps investors are increasingly searching for stores of value not tied to sovereign countries and thus not affected by the trade turmoil,” Cipolaro added.
However, not all analysts share this optimism. YouHodler’s Ruslan Lienkha flagged the potential formation of a “death cross” in both Bitcoin and the S&P 500—a bearish technical indicator that suggests a downturn may be looming without a strong macroeconomic catalyst.
Also Read: Bitcoin Jumps as Trump Exempts Tech from Tariffs — Is a Crypto Rally Brewing?
Still, Cipolaro remains confident that increased institutional interest in Bitcoin could spark a feedback loop of greater stability and adoption amid global financial uncertainty.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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