Bitcoin's Stability Amid Market Turmoil Draws Institutional Interest
2min read Bitcoin has demonstrated remarkable resilience amidst the recent global market turmoil triggered by U.S. tariff uncertainties. The volatility began when President Donald Trump announced a 10% base import tax on April 2, only to reverse the decision a few days later. This policy reversal caused significant fluctuations in traditional financial markets, with stocks and bonds experiencing unpredictable swings. However, Bitcoin remained relatively stable, drawing the attention of institutional investors and traders.
While traditional markets were in chaos, the crypto space showed surprising stability. Greg Cipolaro from NYDIG noted that crypto markets handled the recent turmoil better than traditional assets. In a note released on April 11, Cipolaro observed that Bitcoin’s volatility stayed relatively stable despite a 22.5% drop from January highs. He also pointed out that liquidations in crypto were significantly lower than during past major events, indicating a more mature market.
Tether, the largest stablecoin, briefly dipped below $1 but quickly recovered, further highlighting the resilience of the crypto market. Cipolaro suggested that risk-focused investment funds, such as risk parity funds, are increasingly considering Bitcoin as a viable investment option. These funds could potentially reduce volatility in the long run, fostering a cycle of increased institutional adoption and growing stability.
The bullish sentiment in the crypto market is evident in the derivatives market. On Deribit, a leading crypto options platform, traders have shown a growing appetite for a dramatic Bitcoin rally. The $100K call option, where traders are betting Bitcoin will reach that price, has seen open interest soar to $1.2 billion, making it the most popular option on the platform. This shift indicates a strong bullish sentiment among traders, who are abandoning bearish puts in favor of bullish calls.
Deribit reported that last week’s market chaos led many traders to sell off puts in the $75K–$78K range and aggressively pick up calls between $85K and $100K. This movement helped normalize the options skew, a metric that had previously reflected bearish sentiment. The growing confidence in Bitcoin’s value as an asset detached from sovereign risk could be fueling its calm behavior during market panic.
However, not all analysts share this optimistic view. Ruslan Lienkha, Chief of Markets at YouHodler, pointed out that technical indicators show a potential “death cross” forming—a bearish signal that could indicate more downside risk if macroeconomic conditions don’t improve. Lienkha advises caution, suggesting that Bitcoin’s calm could be temporary if broader economic indicators deteriorate further.
As traditional markets continue to grapple with unpredictable trade policies, Bitcoin’s ability to maintain composure is reshaping investor perceptions. Whether this stability signals the beginning of a long-term rally or a temporary calm before a potential storm, one thing is clear—Bitcoin is once again defying expectations and capturing the attention of the financial world.
