Bitcoin defied expectations in April, delivering double-digit gains while posting lower volatility than major traditional assets.<\/p>\n
According to analysts<\/a> at Galaxy Digital, Bitcoin\u2019s (BTC<\/a>) realized volatility over the past 10 trading sessions dropped to 43.86, lower than the S&P 500\u2019s 47.29 and the Nasdaq 100\u2019s 51.26 \u2014 an unusual \u201cpositioning for a digital asset traditionally known for its outsized volatility.\u201d<\/p>\n The data point comes against a backdrop of renewed financial turbulence. Since US President Donald Trump\u2019s Liberation Day tariff announcement on April 2, traditional markets have wobbled.<\/p>\n The Nasdaq Composite is flat, the Bloomberg Dollar Index fell nearly 4%, and even gold (typically a safe haven) briefly hit $3,500 per ounce before pulling back to a 5.75% gain, Galaxy Digital analysts wrote in a May 12 note.<\/p>\n However, they noted that Bitcoin surged 11% over the same period, reinforcing its evolving role as a macro hedge amid geopolitical and fiscal uncertainty.<\/p>\n The Nasdaq Composite Index has been in the red over the past six months. Source: <\/em>Nasdaq<\/em><\/a><\/p>\n Related: <\/strong><\/em>Bitcoin illiquid supply hits 14M BTC as hodlers set bull market record<\/strong><\/em><\/a><\/p>\n The analysts noted that Bitcoin still maintains elevated 30-day correlations with major indexes, around 0.62 with the S&P and 0.64 with the Nasdaq. However, its beta has declined, signaling that investors may be treating it less as a high-risk asset and more as a long-term allocation.<\/p>\n \u201cBitcoin as a non-sovereign asset means an investor doesn\u2019t need the full faith or tax basis of a nation to support the integrity of the asset,\u201d said Chris Rhine, head of liquid active strategies at Galaxy.<\/p>\n Galaxy said that the recent investor behavior mirrors what was observed during the 2018\u20132019 US-China trade tensions when Bitcoin rallied amid rising global uncertainty.<\/p>\n Hank Huang, CEO of Kronos Research,\u00a0told Cointelegraph that surging ETF inflows and Strategy\u2019s ongoing Bitcoin purchases are helping reshape Bitcoin into a digital version of gold, less tied to equities.<\/p>\n \u201cAs institutions deepen liquidity, volatility drops, making Bitcoin a cornerstone for portfolios,\u201d Huang added.<\/p>\n Meanwhile, Galaxy\u2019s OTC trading desk said the market posture is \u201ctactically cautious but structurally constructive,\u201d marked by disciplined leverage and low hedging stress.<\/p>\n With 95% of Bitcoin\u2019s total supply already mined and growing interest from institutions, ETFs and even governments, Bitcoin is increasingly being viewed as a digital store of value.<\/p>\n \u201cBitcoin\u2019s supply and demand dynamics are solidifying its place as a mature digital store of value,\u201d said Ian Kolman, co-portfolio manager at Galaxy.<\/p>\n On April 25, Jay Jacobs, BlackRock\u2019s head of thematics and active ETFs, said there has been a long-term trend in which countries have been reducing their reliance on dollar-based reserves<\/a> in favor of assets like gold and, increasingly, Bitcoin.<\/p>\n He noted that geopolitical fragmentation is fueling demand for uncorrelated assets, with Bitcoin increasingly viewed alongside gold as a safe-haven asset.<\/p>\nBitcoin\u2019s correlation with major indexes declines<\/h2>\n
Institutions view Bitcoin as hedge<\/h2>\n