Global Markets Enter Deep Uncertainty
Crypto and Economy Recap: This past week marked one of the most volatile periods for global markets since the COVID-19 crash of March 2020. It started with President Trump announcing historic reciprocal tariffs on over 25 countries. The US effective tariff rate is now above 25%, higher than even during the 1930s Smoot-Hawley Tariff Act. Such a sudden hike in tariffs last occurred before the Great Depression, when US markets collapsed by 86%.
Source | White House
Markets didn’t wait to react. The Nasdaq 100 officially entered a bear market after dropping 6% in a single day. US stocks have lost over $11 trillion since February 19, with recession odds now above 60%. The S&P 500 also fell more than 10% in just two days, a rare event seen only six times before, most recently in 2020.
Source | Tradingview
This wasn’t just a US story. The Nikkei 225, Russell 2000, and even tech giants like the Magnificent 7 stocks joined the downward spiral. The economic uncertainty index in the US reached an all-time high, suggesting more turbulence may follow.
Tariff Dominoes: Retaliation, Reactions, and Recession Warnings
US President Trump’s aggressive tariff policy caused a ripple effect. China quickly hit back with 34% tariffs on all American goods, triggering a further collapse in oil prices and equity markets. Beijing also demanded Washington immediately cancel its new tariffs, warning they “threaten global economic growth.”
Meanwhile, EU officials announced they were preparing countermeasures in response to the US imposing 20% tariffs on various European goods. UK Prime Minister Keir Starmer began pushing for a new trade deal with the US to eliminate tariffs and calm tensions.
Trump didn’t stop at China or Europe. A full list of targeted countries included Vietnam (46%), Sri Lanka (44%), Taiwan (32%), India (26%), Japan (24%), and dozens more, with Canada and Mexico being the only major economies spared, suggesting behind-the-scenes negotiations.
At the same time, geopolitical tensions rose sharply. Trump threatened to bomb Iran if nuclear negotiations failed and also said he was “very angry” with Putin, warning of possible secondary sanctions on Russian oil exports.
Source | Reuters
Trump vs. the Fed: An Open Conflict
Amid the chaos, Fed Chair Jerome Powell said it was “too soon” to cut interest rates, especially with rising inflation risks due to tariffs. Trump responded publicly, urging Powell to “cut interest rates” and “stop playing politics.”
The clash isn’t just about policy, it’s personal. Trump repeatedly criticized Powell for being “late” with rate cuts, while Powell emphasized caution. The back-and-forth sparked concern that monetary policy could become even more politicized ahead of the election.
Source | TruthSocial @realDonaldTrump
Meanwhile, US unemployment figures showed a small uptick from 4.1% to 4.2%. Though not a major shift, it was enough to weaken the dollar and suggest the job market may finally be feeling the economic squeeze.
Crypto: Calm in the Eye of the Storm
Unlike traditional markets, Bitcoin held its ground. Despite the S&P 500 and Nasdaq plunging, Bitcoin showed resilience, prompting many to ask whether it is finally decoupling from traditional markets.
Commentators pointed out that during previous economic shocks, Bitcoin usually followed the same downward trend as stocks. This time, however, it remained stable, hinting at possible growing maturity as a financial asset. Whether this is a temporary calm or the start of a larger shift remains to be seen.
Elsewhere in crypto, Ethereum regained its dominance in DEX (decentralized exchange) trading, overtaking Solana for the first time since September. But Solana still had a major moment, 200 million USDT worth of SOL was unlocked this week, marking the largest token unlock event since 2021. Four major accounts who staked in April 2021 are now sitting on 5.5x profits.
Source | Arkham Intel
ETFs, Institutions, and Chainlink’s Big Leap
Institutional interest in crypto remained strong. The SEC acknowledged receiving a new spot ETF filing for Solana from Fidelity, while VanEck registered the first-ever spot ETF for BNB in the US These developments could open the doors for wider investment into altcoins.
Chainlink also launched a major feature, Payment Abstraction is now live on mainnet. This allows users to pay for services using any token, with the transaction automatically converted into LINK via Uniswap. This removes payment friction and enhances cryptoeconomic security across the Chainlink ecosystem.
Off the exchanges, however, a trend emerged. OTC (Over-The-Counter) desks are being drained. According to CryptoQuant, inventory levels are dropping fast, signaling either growing institutional demand or withdrawal to private wallets.
Source | CryptoQuant
Legal Drama, Hacks, and a Future in the Skies
In the world of Web3 and cybersecurity, a hacker who stole 2,930 ETH from zkLend (worth 5.4 million USDT) lost it all after accidentally visiting a phishing site disguised as TornadoCash. The stolen funds were immediately swept by another hacker. A strong reminder: even thieves aren’t safe in crypto.
Meanwhile, Story Protocol is aiming to revolutionize the intellectual property market, currently valued at $70 trillion. As AI becomes more widespread, IP rights are in limbo, leading to massive lawsuits and calls for decentralized alternatives.
On a futuristic note, China became the first country to approve autonomous passenger aircraft for public use, essentially flying taxis. This signals the rapid pace at which the tech landscape is evolving, even as the global economy wobbles.
Source | Flyingmag
USDC’s Next Move and a Warning for the Dollar
Lastly, Circle, the issuer of USDC, is preparing for an IPO. The company has hired JPMorgan and Citi to manage the process and may file as early as late April. A public listing could make USDC the first stablecoin-related firm to go mainstream.
And Larry Fink, the CEO of BlackRock, gave a chilling warning, unchecked US debt could eventually dethrone the US dollar as the world’s reserve currency. In a surprising twist, he suggested Bitcoin could become a possible alternative in such a future.
Final Thoughts
This week has been one of shockwaves: trade wars heating up, stock markets shaking, central banks hesitating, and crypto standing firm. The world is caught between old systems breaking and new ones trying to prove themselves. If this week taught us anything, it’s that volatility is the new normal, and staying informed is more important than ever.
This article is not financial advice. Please do your own research (DYOR). You can start your research journey with more in-depth crypto insights on blog.millionero.com. And when you’re ready, you can come trade spot and perpetual futures safely and easily on Millionero.