Crypto’s stress-tested resilience

We’re seeing increasing client interest in how crypto behaves during market stress. This week’s Hash Insider, our weekly research letter, dives into correlation dynamics.

Crypto Correlations Shift Pattern

Toward the end of February, correlations between crypto and other asset classes—excluding gold—began to rise, influenced by key US policy decisions on international trade tariffs. This trend, captured in the 30-day correlation window, is typical during periods of market stress, when assets often move in tandem, reflecting a broader risk-off sentiment.

However, in the wake of “Liberation Day,” this pattern unexpectedly broke, with crypto correlations declining (except to gold). This anomaly mirrors the first week of April when digital assets outperformed traditional markets despite economic uncertainty.

Nasdaq Crypto Index correlation with traditional asset classes:

More in this week’s Hash Insider → Link to report

In addition, our team looked at market rebound past dynamics:

Bitcoin: Post-Stress Winner

Looking back at six major dislocations since 2020, Bitcoin saw sharp drawdowns in the first 10 days—but outperformed all major assets 60 days later in four of the six cases. In my view, the current environment could offer interesting entry point to build a position into the broad crypto market via the Nasdaq Crypto Index. More details about our flagship ETP replicating this index on its Product Page .

How assets performed after stress events

Source : Hashdex and Bloomberg