Bitcoin Shows Early Signs of Acting as a Safe Haven Asset

Bitcoin may be entering a new phase in its market evolution, beginning to act as a store of value during times of “US-risk-off” sentiment, according to the New York Digital Investment Group (NYDIG).

Greg Cipolaro, NYDIG’s global head of research, noted in an April 25 market update that Bitcoin’s behavior during recent market turbulence has been “noticeably different” from the past.

Bitcoin Surged 13% in April

“We’ve been observing subtle shifts in its behavior over the past few weeks,” Cipolaro wrote. “The decoupling from traditional risk assets is still very early and fragile, but for those watching crypto markets 24/7, the shift is palpable.” He explained that Bitcoin is behaving less like a leveraged proxy for US equities and more like a genuine non-sovereign store of value.

Since the beginning of April, Bitcoin has gained over 13%, while US stock indices such as the S&P 500 and the Nasdaq have slid lower amid rising global trade tensions triggered by President Donald Trump’s new tariffs. 

Cipolaro emphasized that alongside Bitcoin, traditional safe-haven assets like gold and the Swiss franc have also been performing strongly, suggesting that Bitcoin is starting to find a place among established hedges.

Alternatives Beyond Traditional Systems

Cipolaro further explained that amid rising volatility across equities, foreign exchange, and bond markets — as measured by the VIX, CVIX, and MOVE indexes — investors are actively seeking shelter from traditional financial risks.

US markets have shown weakness since Trump’s April 2 “Liberation Day” tariff announcements, where tariffs were placed on countries across the board, with rates starting at 10%. Meanwhile, the US dollar and long-term Treasurys, typically seen as safe investments, have also faltered.

Investors looking for non-sovereign alternatives find their options limited. Gold continues to dominate with a $22 trillion market capitalization, compared to Bitcoin’s much smaller $1.8 trillion.

However, Cipolaro pointed out that Bitcoin is unique among major crypto assets, being singularly focused on monetary or store-of-value functions, unlike other cryptocurrencies that serve as infrastructure for decentralized applications.

Despite the recent uptick in Bitcoin’s value, Cipolaro concluded that there are “few signs of the market overheating,” suggesting that the current recovery could still be in its early stages.