Diversitas

Crypto Market Pulse 👀

• Trump announced tariffs on 185 countries👀
• Nasdaq dropped-4.6% in 19 minutes😅
• Crypto followed but we believe the panic is overblown🤔
• Many countries are already negotiating with the US👌
• This was what he wanted to achieve🇺🇸

The reason we’re not overly concerned about the long-term impact of tariffs is that Trump’s trade strategy clearly aims to address existing imbalances. However, a key issue for U.S. treasuries is that if fewer dollars flow abroad due to lower exports, foreign buyers will have less capital to reinvest into U.S. bonds.

As the chart shows, the U.S. has long run a trade deficit (blue line), financed by capital inflows (orange line). If tariffs shift this balance, demand for treasuries could weaken, forcing the Fed and banking system to step in—which ultimately means more liquidity injections and potential dollar debasement.

In short, while the short-term market reaction to tariffs has been volatile, the broader picture suggests that liquidity injections could accelerate, which in turn would likely benefit risk assets (crypto and stocks)🚀

Crypto Market Pulse 👀

• Trump brothers are investing in a Bitcoin mining company 🤔
• Japanese company Metaplanet acquired 696 $BTC 💰
• Tether buys 8,888 Bitcoin worth $750 million in Q1 2025💸
• GameStop raises $1.48 billion from their convertible note offering👀
• They are about to buy $BTC 🔥

Today, all eyes are on how the market reacts to the new tariffs—hopefully, this marks the end of the recent choppy price action.

P.S. Across the four major exchanges—Binance, ByBit, OKX, and Deribit—the average funding rate briefly dipped into negative territory and is now hovering just above zero.

In this cycle, in four similar instances it ended with a price increase and once with a decline.

Meanwhile, Bitcoin's open interest on Binance's BTC/USDT pair is at its lowest level in nearly three years🤔Time to send it higher!

Crypto Market Pulse 👀

• The panic over tariffs was likely exaggerated 🤔
• The U.S. Reverse Repo Facility injected $400 billion into the system🤑
• China announced a $69 billion injection into its four biggest banks for a "capital boost"💰
• Both crypto and the stock market have started to bounce back up ✅
• The U.S. trade policy uncertainty index has hit unprecedented levels 😱
• While some volatility is still expected, we believe the worst may be behind us 👀

Meanwhile industry developments signal strength:

• Strategy acquired 22,048 $BTC for ~$1.92 billion💪
• Bitcoin’s supply on exchanges has dropped to just 7.53%, the lowest since February 2018👀
• The Bitcoin Policy Institute has proposed a framework for the U.S. to acquire $200B in BTC using 'Bit Bonds'🤔
• Larry Fink, CEO of BlackRock, in his annual letter: “The dollar is at risk of losing its reserve status to Bitcoin.”🚀
• $LINK Payment Abstraction is now live on mainnet, unlocking new possibilities for on-chain transactions🔥

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