Diversitas

1. Market Overview

Both crypto and traditional markets faced significant pressure this week as investors braced for the impact of new tariffs set to take effect on April 2nd. Trade tensions and inflation concerns weighed heavily on risk assets, keeping sentiment cautious across the board.

Meanwhile, GameStop made headlines with its decision to raise capital for Bitcoin purchases, following the path of MicroStrategy. This marks yet another major corporate move into BTC, further solidifying its role as a treasury asset and reinforcing the growing institutional adoption of digital assets.

Beyond crypto, macroeconomic volatility intensified as U.S. stocks suffered a massive $1.25 trillion wipeout on Friday amid rising economic uncertainty. While the Federal Reserve held interest rates steady and signaled two rate cuts later in 2025, concerns over inflation and trade policies continued to keep investors on edge.

That said, in our view, markets appear to be pricing in worst-case outcomes. With the Federal Reserve set to slow down quantitative tightening (QT) starting April 1st and interest rates already at elevated levels, there is significant room for policy easing if needed to stimulate the economy.

2. ETF Flows

Despite market volatility, Bitcoin ETFs continued to see positive inflows, while Ethereum outflows remained minimal. This suggests that most of the selling pressure has already been exhausted—a constructive sign that could indicate a potential trend reversal🤔

$BTC ETFs Weekly Flow: +$196,4 million

$ETH ETFs Weekly Flow: -$8,7 million

3. On-Chain Data

• Coinbase Premium: Hovering near zero✅
• Exchange Reserves: Reached new lows✅
• MVRV Ratio: 1.88 (Cycle Top Above 3.7)
• Net Unrealized Profit/Loss (NUPL): 47 (Cycle Top Above 75)✅
• Open Interest: Low✅
• Funding Rates: Negative✅
• CMC Fear and Greed Index: 24 (Fear)✅

More importantly, the average daily realized losses by short-term holders (STH) on exchanges have dropped tenfold. This suggests that fewer investors are willing to sell at a loss, indicating that the short-term capitulation phase may be coming to an end at current price levels🤔

4. Top Weekly News

GameStop follows Strategy’s lead with bitcoin acquisition plan, $1.3 billion note offering

https://www.theblock.co/post/348341/gamestop-follows-strategys-lead-with-bitcoin-acquisition-plan-1-3-billion-note-offering

Crypto trading volumes plunge 70% from the peak as post-election hype fades

https://www.theblock.co/post/348685/crypto-trading-volumes-plunge-70-from-the-peak-as-post-election-hype-fades

Crypto markets slump as latest US inflation data weighs on sentiment

https://www.theblock.co/post/348680/crypto-markets-slump-as-latest-us-inflation-data-weighs-on-sentiment

Nasdaq files 19b-4 with SEC to list and trade shares of Grayscale's proposed Avalanche ETF

https://www.theblock.co/post/348638/nasdaq-files-19b-4-with-sec-to-list-and-trade-shares-of-grayscales-proposed-avalanche-etf

5. Summary

Investing in crypto has always been about seeing beyond the charts—and right now, that perspective is more crucial than ever. The gap between price action and underlying progress in the crypto space has rarely been this wide, and it’s creating a rare opportunity.

Fundamentals remain stronger than ever. Institutional adoption is ramping up, with GameStop and MicroStrategy raising money to buy Bitcoin while ETF inflows signal continued interest from smart money. Regulatory clarity is improving, with Ripple’s $75 million SEC victory and the FDIC easing restrictions on banks engaging with crypto. Meanwhile, blockchain innovation continues at full speed—stablecoin supply has surged to $208 billion, and development across the space is accelerating. Yet, despite these bullish signals, prices tell a different story, with fear levels among the highest in crypto’s history.

History teaches us this disconnect doesn’t last. When development outstrips price, the market eventually wakes up—and it tends to move fast. We’ve seen it before: fundamentals build quietly, then prices explode to catch up. Right now, crypto’s in that sweet spot where reality is outpacing perception, and the smart money knows it. They’re not sweating about those dips or ETH’s lag—they’re eyeing the institutional wave, the regulatory green lights, and the $7.5 trillion market cap on the horizon👀