{"id":12027,"date":"2025-05-13T14:10:40","date_gmt":"2025-05-13T12:10:40","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=12027"},"modified":"2025-05-13T14:10:40","modified_gmt":"2025-05-13T12:10:40","slug":"bitcoin-experiences-unprecedented-stability-outpaced-by-sp-500-and-nasdaq","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/05\/13\/bitcoin-experiences-unprecedented-stability-outpaced-by-sp-500-and-nasdaq\/","title":{"rendered":"Bitcoin Experiences Unprecedented Stability, Outpaced by S&P 500 and Nasdaq"},"content":{"rendered":"

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Bitcoin surpassed anticipations in April, attaining double-digit advancements while exhibiting reduced volatility compared to significant conventional assets.<\/p>\n

Per experts<\/a> at Galaxy Digital, Bitcoin\u2019s (BTC<\/a>) actualized volatility over the past 10 trading periods decreased to 43.86, which is lower than the S&P 500\u2019s 47.29 and the Nasdaq 100\u2019s 51.26 \u2014 an atypical \u201cpositioning for a digital asset historically recognized for its significant volatility.\u201d<\/p>\n

This data point arises amidst renewed economic turbulence. Following US President Donald Trump\u2019s Liberation Day tariff declaration on April 2, traditional markets have experienced instability.<\/p>\n

The Nasdaq Composite remains stagnant, the Bloomberg Dollar Index dropped nearly 4%, and even gold (generally perceived as a safe haven) briefly reached $3,500 per ounce before retreating to a 5.75% gain, Galaxy Digital analysts noted in a May 12 report.<\/p>\n

Nevertheless, they emphasized that Bitcoin rallied 11% during the same timeframe, underscoring its transforming role as a macro hedge in light of geopolitical and fiscal unpredictability.<\/p>\n

The Nasdaq Composite Index has been in decline over the last six months. Source: <\/em>Nasdaq<\/em><\/a><\/figcaption><\/figure>\n

Related: <\/strong><\/em>Bitcoin illiquid supply reaches 14M BTC as hodlers establish bull market record<\/strong><\/em><\/a><\/p>\n

Bitcoin\u2019s correlation with major indexes diminishes<\/h2>\n

The experts observed that Bitcoin still retains high 30-day correlations with leading indexes, approximately 0.62 with the S&P and 0.64 with the Nasdaq. However, its beta has reduced, indicating that investors may be regarding it less as a high-risk asset and more as a long-term investment.<\/p>\n

\u201cBitcoin as a non-sovereign asset implies that an investor does not require the full faith or tax basis of a nation to uphold the asset’s integrity,\u201d stated Chris Rhine, head of liquid active strategies at Galaxy.<\/p>\n

Galaxy indicated that the recent investor behavior reflects what was seen during the 2018\u20132019 US-China trade frictions when Bitcoin surged amid escalating global uncertainty.<\/p>\n

Hank Huang, CEO of Kronos Research, told Cointelegraph that rising ETF inflows and ongoing Bitcoin acquisitions are contributing to reshaping Bitcoin into a digital counterpart of gold, increasingly detached from equities.<\/p>\n

\u201cAs institutions enhance liquidity, volatility declines, positioning Bitcoin as a fundamental element for portfolios,\u201d Huang added.<\/p>\n

Institutions perceive Bitcoin as a hedge<\/h2>\n

Meanwhile, Galaxy\u2019s OTC trading desk remarked that the market positioning is \u201ctactically cautious but structurally advantageous,\u201d characterized by disciplined leverage and minimal hedging pressure.<\/p>\n

With 95% of Bitcoin\u2019s overall supply already extracted and growing interest from institutions, ETFs, and even governmental bodies, Bitcoin is progressively regarded as a digital store of value.<\/p>\n

\u201cBitcoin\u2019s supply and demand dynamics are cementing its status as a mature digital store of value,\u201d remarked Ian Kolman, co-portfolio manager at Galaxy.<\/p>\n

On April 25, Jay Jacobs, BlackRock\u2019s head of thematics and active ETFs, mentioned that there has been a persistent trend wherein countries have been decreasing their dependence on dollar-based reserves<\/a> in favor of assets like gold and, increasingly, Bitcoin.<\/p>\n

He pointed out that geopolitical fragmentation is intensifying the demand for uncorrelated assets, with Bitcoin being viewed increasingly alongside gold as a secure asset.<\/p>\n

Magazine:\u00a0<\/strong><\/em>Bitcoin eyes\u2019 crazy numbers,\u2019 JD Vance set for Bitcoin talk: Hodler\u2019s Digest, May 4 \u2013 10<\/strong><\/em><\/a><\/p>\n