Chart of the Week: Tariff Carnage Starting to Fulfill Bitcoin's 'Store of Value' Promise

Traditional safe-haven assets like gold and the Swiss Franc have been joined by bitcoin as a refuge for investors.

• April has been marked by extreme market volatility due to President Trump's tariff announcements.
• Traditional safe-haven assets like gold and the Swiss Franc have been joined by bitcoin as a refuge for investors.
• Bitcoin is gaining recognition as a non-sovereign store of value amid increasing market uncertainty.

Amid the tumultuous events of April, marked by extreme market volatility due to President Trump's tariff announcements, traditional safe-haven assets like gold and the Swiss Franc found a new companion in bitcoin as a refuge for investors.

In a month characterized by conflicting news on tariffs and uncertainty about where to invest safely, bitcoin emerged as an unexpected contender for those seeking stability. While gold and the Swiss Franc have been historically reliable safe-haven choices, bitcoin entered the scene following President Trump's tariff escalation on April 2, which sparked intense market fluctuations.

NYDIG's analysis pointed out that bitcoin distinguished itself from being just a leveraged version of U.S. equity beta, behaving more like a non-sovereign store of value during this period of heightened market unpredictability.

As investors navigate through the evolving landscape of trade dynamics, they are beginning to recognize bitcoin's potential as an alternative store of value outside sovereign influence. The cryptocurrency seems to be reverting back to its original purpose – thriving in times when traditional assets falter.

"Bitcoin has acted less like a liquid levered version of levered US equity beta and more like the non-sovereign issued store of value that it is," NYDIG wrote.

Zooming out, it seems that as the "sell America" trade gains momentum, investors are taking notice of bitcoin and the original promise of the biggest cryptocurrency.

"Though the connection is still tentative, bitcoin appears to be fulfilling its original promise as a non-sovereign store of value, designed to thrive in times like these," NYDIG added.