Crypto Markets Remain Resilient Amid Global Tariff Chaos Sparked by Trump
While traditional financial markets have been rattled by US President Donald Trump’s erratic global tariff policies, the crypto market has shown surprising resilience, according to a recent analysis by the New York Digital Investment Group (NYDIG).
“Despite the turmoil in broader financial markets, the crypto space has remained relatively calm,” noted Greg Cipolaro, NYDIG’s Global Head of Research, in an April 11 market update. “In typical risk-off scenarios, crypto markets usually reflect the pressure — but that hasn’t happened this time.”
Cipolaro highlighted that crypto perpetual futures funding rates have stayed “consistently positive.” While there was a brief spike in liquidations on April 6 and 7 following Trump’s tariff announcement on April 2, the total liquidation volume was capped at $480 million — significantly lower than during previous market shocks.
He also noted that the price of Tether (USDT), a widely-used stablecoin pegged to the U.S. dollar, dipped slightly below $1 but avoided any sharp decline, suggesting underlying market confidence.
Trump’s announcement on April 2 introduced a sweeping set of tariffs affecting nearly all countries, only for his administration to temporarily roll back most of them on April 9, shifting to a 10% baseline rate — with China facing tariffs as high as 145%. The mixed signals have roiled both traditional and crypto markets, leaving many assets struggling to recover.
Further confusion followed on April 13 when the White House clarified that its decision two days earlier to exempt electronics from tariffs was only temporary.
Bitcoin Stands Out as Volatility Declines
Although Bitcoin hasn’t been immune to recent volatility, Cipolaro emphasized that it has outperformed many traditional assets and maintained relatively stable pricing. “Volatility in Bitcoin has not spiked to historic highs,” he said, “and its relative calm is attracting attention.”
He suggested that investors may be increasingly seeking value stores independent of government policies, such as Bitcoin, to hedge against economic uncertainty.
Bitcoin is currently down 22.5% from its mid-January peak of over $108,000 but has stabilized around $84,730 in the past 24 hours, according to CoinGecko.
Cipolaro also noted that Bitcoin’s volatility is narrowing compared to traditional asset classes, making it more attractive to institutional investors using risk parity strategies — portfolios that allocate based on risk levels rather than traditional asset categories.
“Risk parity funds moving into Bitcoin can help moderate its volatility,” he said, “creating a feedback loop of greater adoption and improved stability.”
Caution Ahead? Market Indicators Suggest Mixed Signals
Still, not all experts are bullish. Ruslan Lienkha, Chief of Markets at YouHodler, expressed caution in an April 12 note, warning that technical indicators are showing signs of weakness.
He pointed to the potential formation of a “death cross” — where Bitcoin’s 50-day moving average crosses below its 200-day average — a traditionally bearish signal that is also appearing on the S&P 500.
“This pattern often signals a bearish outlook in the medium term,” Lienkha warned, “suggesting markets may struggle to sustain gains without a strong macroeconomic catalyst.”
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