It was stated by NYDIG’s Greg Cipolaro that Bitcoin’s separation from conventional risk assets remains in an “early and delicate” phase, although the transition is already being noticeably felt.
It has been observed by the New York Digital Investment Group that Bitcoin is increasingly being treated as a store of value during periods of “US-risk-off” sentiment, indicating a possible change in its correlation with traditional financial assets.
It was observed by Greg Cipolaro, global head of research at NYDIG, in an April 25 market commentary that Bitcoin had been felt to behave “noticeably different” over the trading week that concluded on April 25.
Subtle shifts in its behavior have been observed over the past few weeks, he noted. Although the decoupling from traditional risk assets remains in its early and fragile stages, the change is being keenly felt by those monitoring crypto markets around the clock.
Bitcoin has acted less like a liquid levered version of levered US equity beta and more like the non-sovereign issued store of value that it is.
It was pointed out by Cipolaro that Bitcoin has risen by over 13% since the start of April, while declines have been seen in US markets like the S&P 500 and the tech-focused Nasdaq, driven by growing global trade tensions stemming from tariffs imposed by US President Donald Trump.
It was further mentioned by him that the US dollar and long-term US Treasurys have also been underperforming since the election and Trump’s April 2 “Liberation Day” tariff declarations, which subjected all countries to varying rates, with a minimum of 10%.
It was stated by Cipolaro that gold and currencies like the Swiss franc have consistently been favored as safe havens, while Bitcoin is being recognized as an emerging non-sovereign store of value.
With soaring volatility across equities (tracked by the VIX index), foreign exchange rates (CVIX index), and interest rates and bonds (MOVE index), a search for safe haven assets has been actively pursued by investors.
It was noted by Cipolaro that alternatives to US hegemony are also being sought by investors, whether in stocks, bonds, foreign exchange, or commodities.
However, it was mentioned by Cipolaro that few large and liquid options are available to investors looking for alternatives beyond traditional financial systems.
Gold is still regarded as the largest non-sovereign store of value, with a market capitalization of approximately $22 trillion, whereas only a fraction of that — about $1.8 trillion — is held by Bitcoin.
Additionally, it was stated that Bitcoin is the only major crypto asset listed that “is solely dedicated to monetary or store of value purposes,” while the others are more accurately described as serving as the fuel for decentralized application platforms.
It was concluded by Cipolaro that, despite Bitcoin’s recent rise, “few indications of market overheating are present,” and the recovery remains in its early phases.
