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 a tumultuous and highly volatile month marked by President Trump's tariff announcements, traditional safe-haven assets like gold and the Swiss Franc have found an unexpected companion in bitcoin as a sanctuary for investors seeking stability.

The onset of extreme market turbulence triggered by President Trump's tariff decisions has brought to light the resilience of bitcoin as a store of value outside government control. As traditional haven assets wavered in their reliability during this period of uncertainty, bitcoin emerged as a promising alternative to safeguard investments.

Data from NYDIG underscores how since the announcement of substantial tariff increases on April 2nd, bitcoin has proven itself alongside gold and the Swiss Franc as a reliable option for risk-averse investors. Rather than behaving like a volatile leveraged asset tied to US equities, bitcoin is demonstrating its true essence as a non-sovereign store of value.

In light of the growing momentum behind the "sell America" trade, investors are increasingly acknowledging bitcoin's innate qualities as a decentralized asset capable of preserving value independently from governmental influences. NYDIG points out that although this relationship is still developing, it seems that bitcoin is indeed living up to its original purpose as an independent store of value crafted to excel in times of economic uncertainty.

"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.