Bitcoin has emerged as a beacon of stability amid the chaos unleashed by President Donald Trump’s aggressive tariff policies. While U.S. stock markets experience huge swings, the leading cryptocurrency’s volatility has notably declined.
Tariffs Trigger Stock Market Volatility
Since the April 2 “Liberation Day” tariff announcement, the S&P 500’s (SPY) seven-day realized volatility has skyrocketed from an annualized 50% to 169%, marking the highest level since the 2020 COVID-19 crash, according to CoinDesk. Investors are rattled, seeking refuge from assets vulnerable to political maneuvering.
Bitcoin Holds Steady While U.S. Markets Crack
In contrast, Bitcoin’s volatility has remained relatively subdued. Its seven-day realized volatility stands at 83%, significantly lower than that of the S&P 500. This resilience suggests that Bitcoin is evolving into a low-beta asset, less susceptible to macroeconomic disruptions. James Butterfill, Head of Research at CoinShares, questions, “Should investors place their trust in assets that are highly susceptible to political influence and human error, or in a mathematical framework and emerging store of value that is more resilient to such risks?”
Investors Shift Away from Traditional U.S. Assets
The turmoil isn’t confined to equities. U.S. Treasury bonds, typically considered safe havens, are being offloaded, causing yields to surge by 62 basis points to 4.45% within a week. The U.S. dollar index has also declined to 100, its lowest since September. Evercore ISI notes, “It reflects evaporating U.S. growth exceptionalism,” indicating diminishing confidence in U.S. assets.
Bitcoin’s Emerging Role as a Safe Haven
While Bitcoin has often been criticized for its volatility, recent trends suggest a shift in perception. Bitcoin’s 30-day annualized volatility has stayed below 80% in 2025, a notable drop from levels that exceeded 100% in previous years. This new phase of relative calm, combined with its decentralized structure, is making Bitcoin more appealing to investors seeking alternatives during turbulent times.
That said, gold (CM:XAUUSD) still holds the crown as the traditional safe haven. Gold prices have surged in recent weeks amid escalating tariff tensions, reinforcing its role as the go-to asset when global risk rises. While Bitcoin is gaining ground as a hedge against equity volatility, it’s not yet dethroning gold when it comes to investor trust during full-blown macro panic.
Cryptocurrencies Face Their Own Challenges
Despite Bitcoin’s relative stability, the broader cryptocurrency market has not been immune to the effects of the trade war.Other major digital assets, like Ethereum and XRP, have experienced significant price drops. This divergence highlights the unique position of Bitcoin within the crypto ecosystem and raises questions about the factors contributing to its newfound stability.
At the time of writing, Bitcoin is sitting at $82,503.
