Bitcoin Acts as a “Store of Value” Amid Trump Policy Chaos: NYDIG

Bitcoin appears to be evolving into a reliable store of value during times of heightened U.S. political and economic uncertainty, according to a recent report by the New York Digital Investment Group (NYDIG).

Bitcoin

BTC

$94,030

showed distinct market behavior during the trading week ending April 25, with NYDIG’s Global Head of Research Greg Cipolaro noting a “palpable shift” in its relationship with traditional risk assets.

Bitcoin’s Behavior Feels “Noticeably Different”

In his April 25 market note, Cipolaro emphasized that while Bitcoin’s decoupling from traditional assets is “still very early and fragile,” the change is evident for those closely monitoring crypto markets.

“Bitcoin has acted less like a liquid, levered version of U.S. equity beta and more like the non-sovereign issued store of value that it is,” Cipolaro said.

Since the beginning of April, Bitcoin has gained over 13%, even as major U.S. equity indices like the S&P 500 and the Nasdaq declined due to escalating global trade tensions sparked by President Donald Trump’s new tariff policies.

At the same time, other traditional safe havens such as the U.S. dollar and long-term U.S. Treasurys also underperformed, highlighting a unique opportunity for Bitcoin.

Bitcoin Emerges Alongside Traditional Safe Havens

Historically, during periods of “risk-off” sentiment — when investors seek safety — assets like gold and the Swiss franc have been primary beneficiaries.

Now, Bitcoin is emerging alongside these, strengthening its narrative as a non-sovereign store of value.

Amidst surging volatility across equities (measured by the VIX index), foreign exchange markets (CVIX index), and bond markets (MOVE index), investors are increasingly searching for alternatives outside traditional financial systems.

“Investors are also seeking alternatives to U.S. hegemony, whether that’s stocks, bonds, forex, or commodities,” Cipolaro added.

Limited Large, Liquid Alternatives

Cipolaro pointed out that outside of gold (with its $22 trillion market cap), few large and liquid non-sovereign alternatives exist.

Bitcoin, despite its growing prominence, still represents just a fraction, with a market cap of $1.8 trillion.

Moreover, Bitcoin remains distinct from other major cryptocurrencies because it focuses exclusively on monetary and store-of-value use cases, unlike other cryptos that serve as fuel for decentralized applications.

Market Still in Early Recovery Stage

Despite Bitcoin’s recent strength, Cipolaro concluded that:

“There are few signs of the market overheating.”

He emphasized that Bitcoin’s recovery appears to be in its early stages, suggesting potential for further upside without imminent risks of excessive speculation.