Crypto Markets Stay Stable Amid Trump’s Tariff Turmoil, Says NYDIG

Crypto Resilience in the Face of Tariff Confusion

As traditional markets buckle under the weight of sudden tariff announcements from the Trump administration, the crypto market has shown remarkable resilience, according to Greg Cipolaro, Global Head of Research at the New York Digital Investment Group (NYDIG).

“Despite the carnage in traditional financial markets, the crypto markets have been relatively orderly,” Cipolaro wrote in an April 11 research note.

Trump’s tariff regime — introduced on April 2, amended on April 9, and revised again on April 13 — created widespread uncertainty across global financial markets. While this typically leads to a "risk-off" environment that hurts volatile assets like cryptocurrencies, Cipolaro said crypto has not shown significant signs of stress.

Crypto Futures Show Strength Despite Market Jitters

One of Cipolaro’s key points was the continued strength of crypto perpetual futures, which he said have maintained “persistently positive” funding rates — a sign that sentiment in crypto markets has remained relatively bullish.

While liquidations did spike following the initial tariff announcement, totaling around $480 million on April 6 and 7, Cipolaro noted that these numbers were modest compared to other high-volatility events in crypto’s history.

Tether Price Holds Ground, Bitcoin Remains Resilient

The price of Tether (USDT) — a key stablecoin used for trading — briefly dipped below its dollar peg but remained close to parity, avoiding the type of destabilization that often accompanies sharp market moves.

Meanwhile, Bitcoin (BTC), though not immune to the turbulence, has outperformed many traditional asset classes, Cipolaro noted.

Stocks, bonds and foreign exchange volatility rates all rose after Trump’s tariffs announcement. Source: NYDIG

“At current prices, [Bitcoin] has fared far better than many other asset classes,” he said, adding that Bitcoin’s volatility has not surged to historic highs, in contrast to traditional markets.

At the time of writing, Bitcoin is trading at $84,730, down 22.5% from its mid-January peak of over $108,000, but flat over the past 24 hours.

Bitcoin Becoming More Attractive to Institutional Portfolios

Cipolaro also highlighted that the narrowing volatility gap between Bitcoin and other assets is making it increasingly appealing to risk parity funds, which base their portfolio allocations on risk-adjusted returns.

“Risk parity funds allocating to Bitcoin can help dampen its volatility — making the asset more attractive and potentially reinforcing a virtuous cycle of increased adoption and stability,” he wrote.

He suggested that some institutional investors may be reallocating capital from traditional assets to Bitcoin in search of stability and independence from government-driven turmoil.

Caution from Analysts: A Potential ‘Death Cross’ Looms

Despite Cipolaro’s optimistic view, not all analysts are convinced the crypto market is in the clear.

Ruslan Lienkha, Chief of Markets at YouHodler, warned in an April 12 note that technical indicators are flashing bearish signals. Both Bitcoin and the S&P 500 are on the verge of forming a “death cross” — a chart pattern where the 50-day moving average drops below the 200-day, which is often seen as a signal of medium-term downward pressure.

“Markets may struggle to sustain upward momentum without a clear catalyst or a stream of positive macroeconomic developments,” Lienkha said.

Conclusion: A New Role for Crypto?

While the broader economic landscape remains volatile, crypto — and Bitcoin in particular — appears to be playing an increasingly stabilizing role in investor portfolios. As geopolitical and economic uncertainty continues to mount, the idea of Bitcoin as a hedge or alternative store of value may be gaining ground in more institutional circles.