The cryptographic markets were quite stable in the middle of the larger panic of the market caused by the world prices of US President Donald Trump, according to an analyst from the New York Digital Investment Group (NYDIG).
“Despite the carnage of traditional financial markets, the cryptographic markets have been relatively ordered,” said NYDIG global research manager Greg Cipolaro, in a note of April 11. “Historically, in large risk movements, we tend to see stress appear in cryptographic markets. We have not yet seen that.”
Cipolaro said that the perpetual crypto term rates have “been constantly positive”, with liquidations from April 6 and 7 in the days which announced that Trump announced for the first time the prices on April 2, but only to a total of $ 480 million, which he added “was much lower than other notable liquidation events”.
He noted that Tether’s price (USDT), a stablecoin of the US dollar followed widely used in crypto trading, was less than $ 1 but had “not experienced a sharp drop”.
Trump unveiled a radical pricing regime on April 2 which gathered various samples from each country before interrupting them for just 90 days after their entry into force on April 5 and instead of a basic rate of 10%, in addition to China, which currently has prices up to 145%.
The traditional and cryptographic markets landed after the announcement of Trump’s April 2 rate, and many assets did not recover at the same level as before their disclosure.
The stocks, bonds and exchange rates of foreign exchange have all increased after the announcement of Trump’s prices. Source: Nydig
During the weekend, the Trump administration caused more confusion with its prices, claiming on April 13 than an April 11 decision to exempt many prices electronics was temporary and that they would always be struck by samples.
Bitcoin behaves well, refusing volatility to make it largely attractive
Cipolaro said that Bitcoin (BTC) has not escaped market volatility, “but at current prices, has resisted much better than many other asset classes.”
He added that Bitcoin volatility has not increased at historical levels, unlike traditional markets, and “was relatively stable” despite the instability encouraged by the Trump administration.
“Perhaps investors are looking for more and more value reserves not linked to sovereign countries and therefore not affected by commercial turmoil.”
Bitcoin is down 22.5% compared to its summit in mid-January by more than $ 108,000 and exchanged in the past 24 hours at $ 84,730, according to Coingecko.
Cipolaro said that the narrowing gap between Bitcoin volatility and other assets “makes it” increasingly attractive “to funds with risk parity portfolios – those who use the risk to choose asset allowances.
He added that investors probably reduce their exposure to risks, but “perhaps a reallocation of the Bitcoin active mixture is one of the reasons why it was more floating.”
In relation: S&P 500 briefly sees the volatility of the Bitcoin level in the midst of Trump’s pricing war
“Risk parity funds allocating to Bitcoin can help alleviate its volatility – making the asset more attractive and potentially strengthening a virtuous cycle of increased adoption and stability,” said Cipolaro.
However, Youhodler Ruslan Linkha markets told Cintelegraph in a note on April 12 that despite a wider market rebound, “technical indicators paint a worrying image.”
He said that a “death cross”, when the 50 -day mobile average crosses the 200 -day mobile average, is potentially formed on Bitcoin and the S&P 500.
Linkha has said that the scheme is “generally considered to be a low -term lower signal, which suggests that markets may have trouble maintaining momentum without a clear catalyst or a positive macroeconomic developments flow”.
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