In the midst of the global market turmoil caused by US President Donald Trump's trade policies, the crypto markets have surprisingly remained relatively stable, according to Greg Cipolaro, the global head of research at New York Digital Investment Group (NYDIG). Cipolaro noted that despite the chaos in traditional financial markets, the crypto markets have shown resilience, with crypto perpetual futures rates staying positive and liquidations remaining manageable.

Following Trump's announcement of sweeping tariffs on April 2, traditional and crypto markets experienced a downturn. However, Cipolaro pointed out that while Bitcoin did not escape market volatility, it has fared better compared to other asset classes. He highlighted that Bitcoin's volatility has not surged to historical levels and has remained relatively stable amidst the uncertainty caused by the Trump administration's trade policies.

Cipolaro suggested that investors may be turning to Bitcoin as a store of value that is not tied to any specific country and is therefore less susceptible to trade turmoil. He mentioned that the decreasing volatility gap between Bitcoin and other assets is making it more appealing to funds with risk parity portfolios, potentially leading to increased adoption and stability for the cryptocurrency.

While Cipolaro remains optimistic about Bitcoin's resilience, Ruslan Lienkha, the chief of markets at YouHodler, expressed some concerns. Lienkha pointed out the formation of a "death cross" pattern on Bitcoin and the S&P 500, where the 50-day moving average falls below the 200-day moving average. This pattern is generally considered a bearish signal for the medium term, indicating potential challenges for the markets to sustain upward momentum without significant catalysts or positive macroeconomic developments.

Despite the mixed signals in the market, the crypto industry continues to attract attention and interest. The stability of Bitcoin in the face of global economic uncertainties is positioning it as a potential safe haven asset for investors looking to diversify their portfolios. As the crypto markets navigate through the volatility caused by external factors, such as trade tensions and economic policies, the resilience of cryptocurrencies like Bitcoin will be closely monitored by investors and analysts alike.

Source: https://cointelegraph.com/news/crypto-markets-relatively-orderly-amid-trump-tariff-chaos-nydig?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound