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.
The New York Digital Investment Group observed that investors are increasingly treating Bitcoin as a store of value during periods of “US-risk-off” sentiment. This trend indicates a potential shift in Bitcoin’s correlation with traditional financial assets.
Greg Cipolaro, global head of research at NYDIG, observed in his April 25 market commentary that Bitcoin behaved ‘noticeably different’ during the trading week ending April 25.
He noted subtle shifts in Bitcoin’s behavior over the past few weeks. Although its decoupling from traditional risk assets remains in an early and fragile stage, crypto market watchers are already feeling the impact.
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.
Cipolaro pointed out that Bitcoin has risen by over 13% since the start of April, while US markets like the S&P 500 and the tech-focused Nasdaq have declined due to growing global trade tensions triggered by tariffs imposed by US President Donald Trump.
He further mentioned that the US dollar and long-term US Treasurys have also underperformed since the election and Trump’s April 2 “Liberation Day” tariff declarations, which imposed varying rates on all countries, with a minimum of 10%.
Cipolaro stated that investors have consistently favored gold and currencies like the Swiss franc as safe havens, while they are increasingly recognizing Bitcoin as an emerging non-sovereign store of value.
As volatility soars across equities (tracked by the VIX index), foreign exchange rates (CVIX index), and interest rates and bonds (MOVE index), investors are actively searching for safe haven assets.
Cipolaro noted that investors are also seeking alternatives to U.S. hegemony across stocks, bonds, foreign exchange, and commodities.
Limited Availability of Major Liquid Options
However, Cipolaro mentioned that investors seeking alternatives beyond traditional financial systems have few large and liquid options available.
Investors still regard gold as the largest non-sovereign store of value, with a market capitalization of around $22 trillion, while Bitcoin accounts for only a fraction of that — approximately $1.8 trillion.
Additionally, the statement emphasized that Bitcoin stands as the only major crypto asset solely dedicated to monetary or store of value purposes, while other cryptocurrencies primarily serve as fuel for decentralized application platforms.
Cipolaro concluded that despite Bitcoin’s recent rise, the market shows few signs of overheating, and the recovery remains in its early stages.
