NYDIG: Bitcoin (BTC) demonstrates its "store of value" attributes amid the chaos of Trump's policies.

Source: Cointelegraph Original text: "NYDIG: Bitcoin (BTC) demonstrates "store of value" attributes amid the chaos of Trump policies"

According to an analysis by the New York Digital Investment Group (NYDIG), during the rise of risk aversion in the United States, Bitcoin (BTC) began to exhibit characteristics of a store of value, marking a potential shift in its relationship with traditional assets.

NYDIG's Global Research Director Greg Cipolaro pointed out in the market report on April 25 that Bitcoin exhibited "significantly different" characteristics during the trading week ending April 25.

"In the past few weeks, we have observed subtle changes in its behavior," he added. "Although the decoupling from traditional risk assets is still in its early and fragile stages, this shift has become noticeably perceptible to those who monitor the crypto market around the clock."

"The performance of Bitcoin no longer resembles a liquidity leveraged version of the beta coefficient of U.S. stocks, but rather an essential non-sovereign issuance value storage tool."

Cipolaro pointed out that since the beginning of April, Bitcoin has risen by more than 13%, while the S&P 500 index and the tech-heavy Nasdaq index have fallen due to the global trade tensions triggered by Trump's tariff policies.

He stated that since the general election and Trump's announcement of the "Freedom Day" tariff policy on April 2 (which implements different tax rates for all countries, with a minimum of 10%), the performance of the dollar and long-term U.S. Treasury bonds has also been poor.

Cipolaro pointed out that currencies like gold and the Swiss franc have consistently been stable winners as safe-haven assets, while also noting that Bitcoin is becoming a non-sovereign store of value.

As the volatility in the stock market (VIX Index), foreign exchange (CVIX Index), and interest rates and bonds (MOVE Index) surges, investors are seeking safe-haven assets.

Cipolaro stated that investors are also seeking alternatives to US hegemony, whether in stocks, bonds, foreign exchange, or commodities.

However, Cipolaro pointed out that for investors seeking alternative options outside of the traditional financial system, the choices are quite limited in terms of scale and liquidity.

Gold remains the largest non-sovereign store of value, with a market capitalization of about $22 trillion, while Bitcoin's market capitalization is only $1.8 trillion, which is just a small fraction of it.

In addition, he stated that among the major crypto assets, Bitcoin is the only asset that is "focused on currency or value storage use cases," while other crypto assets are better described as fuel for decentralized application platforms.

Cipolaro concluded that although Bitcoin has shown significant gains recently, "the market has hardly shown any signs of overheating," and the recovery is still in its early stages.

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