{"id":11065,"date":"2025-04-14T11:20:59","date_gmt":"2025-04-14T09:20:59","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=11065"},"modified":"2025-04-14T11:20:59","modified_gmt":"2025-04-14T09:20:59","slug":"crypto-markets-display-stability-amid-trump-tariff-turmoil-nydig-insights","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/04\/14\/crypto-markets-display-stability-amid-trump-tariff-turmoil-nydig-insights\/","title":{"rendered":"Crypto Markets Display Stability Amid Trump Tariff Turmoil: NYDIG Insights"},"content":{"rendered":"

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Cryptocurrency markets have remained relatively calm despite broader market distress triggered by US President Donald Trump\u2019s \u201con-again, off-again\u201d comprehensive global tariffs, as noted by a New York Digital Investment Group (NYDIG) analyst.<\/p>\n

\u201cIn spite of the devastation in conventional financial markets, the cryptocurrency markets have been quite orderly,\u201d stated NYDIG global research head Greg Cipolaro in a note dated April 11<\/a>. \u201cHistorically, in extensive risk-averse movements, we often observe pressures emerge in cryptocurrency markets. So far, we haven’t witnessed that.\u201d<\/p>\n

Cipolaro remarked that cryptocurrency perpetual futures rates<\/a> have \u201cremained persistently positive,\u201d noting that liquidations surged on April 6 and 7 following Trump\u2019s initial tariff announcement on April 2, but totaled merely $480 million, which he emphasized \u201cwas considerably lower than other significant liquidation episodes.\u201d<\/p>\n

He observed that the price of Tether (USDT<\/a>), a stablecoin linked to the US dollar and commonly utilized in cryptocurrency trading, was under $1 but had \u201cnot undergone a sharp fall.\u201d<\/p>\n

On April 2, Trump introduced an extensive tariff regime affecting various levies on every nation before suspending them<\/a> for 90 days just hours after implementation on April 9, instead opting for a base tariff of 10%, excluding China, which faces tariffs as high as 145%.<\/p>\n

Both traditional and cryptocurrency markets plummeted after Trump\u2019s tariff announcement on April 2, with numerous assets failing to rebound to pre-announcement levels.<\/p>\n

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Volatility rates for stocks, bonds, and foreign exchange surged following Trump\u2019s tariff announcement. Source: <\/em>NYDIG<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Over the weekend, the Trump administration created further confusion<\/a> regarding its tariffs, revealing on April 13 that a previous decision on April 11 to exempt several electronics from tariffs was temporary and they would still be subject to levies.<\/p>\n

Bitcoin performs well, decreasing volatility to enhance its appeal<\/h2>\n

Cipolaro indicated that Bitcoin (BTC<\/a>) did not escape the market fluctuations, \u201cbut at current values has outperformed many other asset categories.\u201d<\/p>\n

He mentioned that Bitcoin\u2019s volatility has not escalated to historic highs, unlike traditional markets, and \u201chas remained fairly stable\u201d despite the turmoil instigated by the Trump administration.<\/p>\n

\u201cPerhaps investors are increasingly looking for stores of value that are not linked to sovereign nations and thus unaffected by trade disputes.\u201d<\/p>\n

Bitcoin has decreased by 22.5% from its mid-January high of over $108,000 and has remained unchanged over the past 24 hours at $84,730, according<\/a> to CoinGecko.<\/p>\n

Cipolaro mentioned that the diminishing disparity between Bitcoin\u2019s volatility and other assets renders it \u201cincreasingly more attractive\u201d to funds with risk parity portfolios \u2014 those that utilize risk considerations to determine asset allocations.<\/p>\n

He noted that investors are likely minimizing their risk exposure but \u201cperhaps reallocating part of their asset mix to Bitcoin is one of the factors behind its resilience.\u201d<\/p>\n

Related: <\/strong><\/em>S&P 500 briefly witnesses \u2018Bitcoin-level\u2019 volatility amid Trump tariff conflict<\/strong><\/em><\/a><\/p>\n

\u201cRisk parity funds investing in Bitcoin can help reduce its volatility \u2014 enhancing the asset\u2019s attractiveness and potentially reinforcing a self-perpetuating cycle of increased adoption and stability,\u201d Cipolaro stated.<\/p>\n

Nevertheless, YouHodler market chief Ruslan Lienkha informed Cointelegraph in an April 12 note that despite a broader market recovery, \u201ctechnical indicators present a worrisome outlook.\u201d<\/p>\n

He mentioned a \u201cdeath cross,\u201d which occurs when the 50-day moving average crosses below the 200-day moving average, may be forming on Bitcoin and the S&P 500.<\/p>\n

Lienkha explained that this pattern is \u201cgenerally viewed as a bearish signal for the medium term, indicating that markets might struggle to maintain upward momentum without a definitive catalyst or a series of favorable macroeconomic developments.\u201d<\/p>\n

Magazine: <\/strong><\/em>Financial nihilism in cryptocurrency is over \u2014 Time to envision great possibilities once more<\/strong><\/em><\/a><\/p>\n