Bitcoin (BTC) Is Starting to Act as a Store of Value During Times of “US-risk-off” Sentiment

Bitcoin (BTC) is beginning to act as a store of value during times of “US-risk-off” sentiment, marking a potential shift in its relationship with traditional assets, according to the New York Digital Investment Group.

As global macro trends continue to influence markets, Bitcoin has noticeably felt "different" over the trading week ended April 25, compared to traditional assets such as US equities, NYDIG’s global head of research Greg Cipolaro said in an April 25 market note.

“We’ve also been observing subtle shifts in its behavior over the past few weeks. The decoupling from traditional risk assets is still very early and fragile, but for those watching crypto markets 24/7, the shift is palpable.”

Cipolaro noted that Bitcoin has gained more than 13% since the beginning of April, whereas US markets such as the S&P 500 and tech-heavy Nasdaq have declined amid escalating global trade tensions due to US President Donald Trump’s tariffs.

The US dollar and long-term US Treasurys have also underperformed since the election and Trump’s April 2 “Liberation Day” tariff announcements, which lumped every country with various rates, the minimum being 10%.

However, gold and currencies such as the Swiss franc have been consistent winners as safe havens, with Bitcoin emerging as a non-sovereign store of value.

Amid surging volatility in equities, measured with the VIX index, foreign exchange rates (CVIX index), and interest rates and bonds (MOVE index), investors have been on the hunt for these safe haven assets.

Investors are also seeking alternatives to US hegemony, whether that is stocks, bonds, forex, or commodities. Few large liquid options exist outside of traditional financial systems.

Gold remains the largest non-sovereign store of value at around a $22 trillion market cap, while Bitcoin has just a fraction of that at $1.8 trillion.

Additionally, Bitcoin is the only top crypto asset listed that “solely focuses on monetary or store of value use cases,” while the others are better described as the fuel for decentralized application platforms.

Despite Bitcoin’s recent gains, “there are few signs of the market overheating,” and the recovery is still in early stages.