Bitcoin hasn't suffered the same losses as equities in the past few weeks of tariff uncertainty, which is comforting to crypto investors. But that it hasn't rallied like gold either is perplexing to some. The flagship cryptocurrency is up about 1% for the month. After President Donald Trump revealed his initial tariff plan on April 2, the market has been characterized by extraordinary volatility. During the period, the S & P 500 has lost nearly 4%, while spot gold has jumped 6%. "Bitcoin broadly does well with these kind of macro conditions, unless there's this kind of risk off," Mike Novogratz, CEO of Galaxy, pointed out on CNBC's "Squawk Box" on Wednesday. "There are always two vectors in bitcoin: one is the macro story, which you're seeing play out in gold. … The other is the adoption story." "Because [bitcoin is] such a young asset, the adoption story needs more calm," he added. "When there's this kind of chaos, the new buyers disappear and that's what we've broadly seen. We've seen very few new buyers. … Bitcoin has been the 'Mag 8' and I don't think that's a permanent condition." Bitcoin is frequently viewed as "digital gold" and a hedge against risks facing the traditional financial sector. Many investors are of the view that it can serve that purpose while still being part of their tech allocation. Bernstein recently said bitcoin trades like another tech stock day to day instead of a hedge. Bitcoin's relative strength through this month's volatility may be due to new institutional demand for the asset, namely bitcoin exchange-traded funds and corporate bitcoin treasuries such as that of MicroStrategy — each of which owns about 5% of bitcoin's supply now. It's still early days, however, Novogratz said. "We don't have the same built-in big institutional buyer of bitcoin yet" the way gold does, he said. "The adoption cycle is just starting to accelerate into institutions. And let me tell you, institutions — what do they do when they see this kind of uncertainty? They go backwards. They pull in. … They're not being aggressive." — CNBC's Michael Bloom contributed reporting. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
