Bitcoin is increasingly seen as a store of value, particularly amid US policy uncertainties, according to NYDIG. The cryptocurrency gained over 13% in April, contrasting with declines in traditional markets such as the S&P 500. While investors seek safe alternatives, options remain limited, with Bitcoin’s market value much smaller than gold’s.
Bitcoin appears to be carving out a new identity as a store of value, particularly in light of what’s being described as US-risk-off sentiment, according to insights from the New York Digital Investment Group (NYDIG). Greg Cipolaro, the firm’s global head of research, commented on this noticeable shift the week ending April 25, signalling possible changes in Bitcoin’s dynamics with traditional financial assets. He highlighted that this decoupling is still in its early, fragile stages.
According to Cipolaro, this past month has seen Bitcoin gaining over 13% in value, contrasting sharply with the US stock market, particularly the S&P 500 and tech-focused Nasdaq, which have dipped amidst escalating trade tensions sparked by President Trump’s tariffs. The market has taken a hit since Trump’s April 2 announcement of tariffs, affecting currencies and market shares alike.
Despite the underperformance of the US dollar and long-term US Treasurys, there has been a noted surge in interest towards alternative safe-haven assets like gold, the Swiss franc, and now, increasingly, Bitcoin. With rising volatility expressed through various indices, investors are on the lookout for secure assets.
Investors, it seems, are keen on seeking out alternatives to US dominance—across stocks, bonds, or commodities. However, according to Cipolaro, options are quite limited. Gold, with a hefty valuation of around $22 trillion, remains the largest non-sovereign store of value. In comparison, Bitcoin sits at a much smaller market cap of $1.8 trillion.
Cipolaro also pointed out that Bitcoin stands out in the crypto sphere—it’s the only major digital currency focused solely on functioning as a monetary store of value, distinguishing it from others which primarily support decentralised application platforms. Although recent gains are notable, he reassured that currently, “there are few signs of the market overheating,” suggesting a recovery that’s still in its infancy.
In related news, analysts talk of dipped expectations for Bitcoin reaching $100,000 soon, as other headlines keep the crypto space buzzing with speculation and intrigue.
