Bitcoin Gains 3.32% as Institutional Investors Seek Hedge Against Market Volatility

Standard Chartered has identified early indications that institutional investors are increasingly turning to Bitcoin as a hedge against equity market volatility. Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, highlighted in an exclusive interview that this trend is already underway. Investors are seeking alternatives to traditional instruments, with Bitcoin emerging as a highly liquid and 24/7 trading option. Kendrick noted that while investors previously used foreign exchange, specifically the Australian dollar, for this purpose due to its positive correlation with stocks, Bitcoin is now being favored for its similar liquidity and continuous trading availability.

In a recent investor note, Kendrick expanded on Bitcoin’s evolving role in investment portfolios. He suggested that over time, Bitcoin may serve multiple purposes—both as a hedge against traditional financial market fluctuations and as a proxy for tech stocks. Kendrick also pointed out signs that markets may be anticipating a less severe tariff announcement from the U.S. on April 2. Given that the Nasdaq has experienced its worst quarter since Q2 2022, there is a potential for portfolio rebalancing and buying activity.

As of April 1, 2025, Bitcoin has shown resilience amid broader market uncertainties, with the cryptocurrency up approximately 3.32%, trading at $84,282. This uptick comes alongside an overall increase in the global cryptocurrency market capitalization. In contrast, U.S. stock futures, including Dow Futures, S&P 500 Futures, and Nasdaq Futures, are all trending lower in pre-market trading, reflecting investor caution ahead of the anticipated tariff announcements.

In anticipation of Wednesday’s Trump-tariff “Liberation Day,” crypto funds are actively purchasing Bitcoin options at two key strike prices: $75,000 on the downside to hedge against potential losses and $90,000 on the upside to capitalize on a price surge. Joshua Lim, FalconXCrypto Global Co-Head of Markets, highlighted that the options market is pricing in a potential 4% move in Bitcoin’s price during the event. He also noted that traders are likely to keep buying put options in the short term as a protective measure, maintaining a high options cost premium. Additionally, a 4-point increase in the VIX signals that investors expect heightened volatility in the coming days and are turning to options to manage risk or capitalize on price swings.

Coinbase is closing out its roughest quarter since the FTX collapse, with its stock tumbling over 30% since January. While it dipped nearly 1% in early U.S. pre-market trading on Monday, the stock managed to claw back losses and is now up around 1%. Other crypto-linked companies are also feeling the pressure. Galaxy Digital Holdings has dropped over 8% in pre-market trading, while mining firms Riot Platforms and Core Scientific are only barely staying afloat, each gaining less than 0.5%. Meanwhile, CoreWeave, which pivoted from Bitcoin mining to AI infrastructure, is struggling after a disappointing IPO. Initially aiming for a $2.7 billion raise, the company had to settle for $1.5 billion, slashing its offer price from the $47–55 range to $40 per share. Since going public last Friday, its shares are down 6.8%, with a 7.3% drop recorded in the last 24 hours.

According to the analyst's forecast, a unified U.S. stablecoin regulation could soon become reality, as the STABLE and GENIUS Acts differ by only 20% and enjoy strong bipartisan support alongside SEC and CFTC involvement. A push for expanded crypto oversight is underway as incoming CFTC Chair Brian Quintenz meets with Senator Chuck Grassley to discuss regulating the crypto spot market.