Bitcoin Emerging as a Safe Haven Amid Market Turmoil

Bitcoin is increasingly acting as a store of value during periods of "US-risk-off" sentiment, indicating a potential change in its relationship with traditional assets. According to Greg Cipolaro from the New York Digital Investment Group (NYDIG), this shift is still in its early and fragile stages, but it is clearly perceptible. Over the recent trading week ending April 25, Bitcoin’s behavior was noticeably different, with the cryptocurrency showing signs of decoupling from conventional risk assets.

Cipolaro explained that Bitcoin is moving away from its previous role as a leveraged version of US equities and is now more closely resembling a non-sovereign store of value. Since April, Bitcoin has appreciated by over 13%, contrasting with declines in US markets such as the S&P 500 and Nasdaq, which have been affected by escalating trade tensions and tariffs imposed by President Donald Trump.

Meanwhile, traditional safe havens like gold and currencies such as the Swiss franc have maintained their strength. Cipolaro noted that Bitcoin is emerging as a non-sovereign store of value amidst rising volatility in equities, forex, and bonds—measured by indices like VIX, CVIX, and MOVE.

Investors are also searching for alternatives to US dominance, including stocks, bonds, currencies, and commodities. However, options outside traditional financial systems are limited; gold remains the largest non-sovereign store of value with a market cap of approximately $22 trillion, while Bitcoin’s market cap is around $1.8 trillion.

Furthermore, Bitcoin is unique among top cryptocurrencies in focusing solely on monetary and store of value use cases, unlike others that primarily serve as platforms for decentralized applications. Despite recent gains, Cipolaro emphasizes that the market shows few signs of overheating, and the recovery remains in its early phases.