Bitcoin, More Stable Than Stocks? Volatility Reversed Due To Tariff Impact

An unprecedented scene unfolded where the stock market volatility shook more than cryptocurrency as a result of the tariff policies pursued by Donald Trump, the president of the United States. Historically, Bitcoin, which has recorded the highest volatility among asset groups, has been attracting attention among investors as it shows lower volatility than major U.S. stock indices recently.

Bloomberg News reported on the 8th (local time) that Bitcoin's volatility index recorded 43.86 based on the recent 10 trading days. During the same period, the S&P500 index recorded 47.29 and the Nasdaq100 index 51.26, showing that Bitcoin is more stable than the traditional stock market. While volatility increased in the short term in the cryptocurrency options market, market participants are generally maintaining an optimistic view on Bitcoin.

This situation is interpreted as a temporary breakdown in the long-standing correlation between Bitcoin and stocks. Cryptocurrencies are usually evaluated as relatively unstable asset classes, but the recent tariff impact centered on U.S. companies has hit stocks harder than Bitcoin. In particular, Bitcoin is analyzed to have shown its defensiveness in this situation as a global asset that is not directly affected by the trade policies of specific countries.

The trend of easing cryptocurrency-related regulations within the United States has also acted as a positive factor for Bitcoin's stability. The reduction of excessive leverage has also been evaluated as strengthening the market's own resilience.

Betto Runde, head of K333 Research, diagnosed, "The most impressive point this week is the fact that Bitcoin avoided a significant drop compared to stock indices," and added, "Even after the tariff announcement by the Trump administration on April 2, Bitcoin maintained a steady upward trend. Considering the extremely high risk aversion sentiment in the market in recent days, this is a very exceptional phenomenon."

Ravi Doshi, co-head of the market at FalconX, said, "The background for Bitcoin outperforming the stock market includes the significant reduction in leverage during last month's frequent selling pressure," and "since April 2, it is rather facing a new turning point."

While the cryptocurrency market is still classified as a risky asset, the fact that it is relatively less sensitive to global risk factors as seen in this case is being reconsidered among investors. In addition to short-term supply and demand changes, Bitcoin's characteristic of being somewhat separate from policy issues has delivered a meaningful message in this market volatility.