👀 Tariff: Curse or Luck for Crypto?

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In just two days, Trump shook the world, and crypto wasn’t exempt. With money flowing out and traders panicking, is it really as bad as it seems?

Here’s what we got for you today:

• ℹ️ Crypto Sources From The Crypto Fire ℹ️

• 📉 Solana (SOL) Hits 3-Week Low

• 👀 You Need To Be Smart To Stay In Crypto Market? Nah …

• ⭐ 5 Things You Shouldn’t Miss

• 🤡 Meme Of The Day

ℹ️ Crypto Sources From The Crypto Fire ℹ️

📉 Solana (SOL) Hits 3-Week Low

Solana's $SOL.X ( ▼ 4.5% ) price has dropped to a 3-week low of $115, falling 12.75% in just the past 24 hours. Let’s break down what’s causing this decline:

Key Factors Driving the Drop:

1️⃣ Trump’s Tariff Announcement:

• Panic in the market as Trump’s tariffs lead investors to exit risky assets like SOL.

• The entire crypto market and Nasdaq suffered losses in the wake of this announcement.

2️⃣ Technical Bearish Signals:

• Bear flag pattern forming on the SOL/USD daily chart — indicating potential further declines.

• SOL is now trading below the lower edge of the pattern, with a possible drop to $96 if no reversal occurs.

3️⃣ Weak Futures Market:

• Funding rate for Solana turned negative, falling from 0.14% to -0.0462%.

• The futures premium (spread between futures and spot prices) dropped from 18% to below 0%, signaling weak demand.

4️⃣ Massive Unlock Event:

🔓 Today, $200M worth of SOL will be unlocked - the largest unlock until 2028, with around 1.79M $SOL.X ( ▼ 4.5% ) (~$200M USD). According to Arkham, this SOL comes from four accounts that staked $37.7M SOL back in April 2021, and those stakers are now sitting on a 5.5x profit at the current price.

What to Expect?

With tariffs, bearish technical patterns, and a massive unlock event, Solana is facing a tough time. It’s a warning to be cautious, especially if you’re trading with leverage — as the risk of liquidation increases.

👀 Tariff Barriers: Curse or Luck for Crypto?

Early morning April 2, President Donald Trump dropped a major policy shift: a 10% baseline tax on all imported goods, starting April 5.

But it doesn't stop there 👇

• China: 34%

• EU: 20%

• Japan: 24%

• Imported cars: 25%

• A new reciprocal tax rule means the U.S. will tax imports half the rate other countries tax U.S. goods. → Ex: China taxes U.S. goods 67% → U.S. responds with 34%

Trump called this not just economic policy — but a move to reshape global trade. And yeah, markets felt it instantly.

1️⃣ What is The Market Impact

📊 Number don’t lie

• $BTC.X ( ▼ 2.95% ) initially ticked up… but then dropped from $88.5K → below $83K (6.2%)

• $ETH.X ( ▼ 6.8% ) fell 6%, from $1,934 → $1,797

• Total crypto market cap dropped 5.3% to $2.7T

• The Fear & Greed Index hit 28 — "Extreme Fear" territory

• S&P 500 lost over $2 trillion in market cap (reported by The Kobeissi Letter)

So yeah, it wasn’t just crypto — traditional markets were hit too.

• Nasdaq 100 futures just did a full 180 - they were up +400 points, then flipped to -500 points right after the announcement. → That’s a wild 900-point swing in minutes.

• Crypto ETFs see major outflows

  • U.S. spot ether ETFs followed the trend, with $3.59 million in outflows on Thursday after $51.24 million left the day before.

  • BlackRock’s IBIT, the largest spot bitcoin ETF, was the only fund to see inflows, attracting $65.25 million despite the chaos. 📈

  • Grayscale’s GBTC led the pack with $60.2 million in outflows.

  • Bitwise BITB wasn’t far behind with $44.19 million.

  • Fidelity FBTC saw $23.27 million leave.

  • $99.86 million exit U.S. spot bitcoin ETFs, flipping the previous day's $220.76 million inflow into heavy outflows.

👀 Look further…

• Risk sentiment & liquidity: Tariffs lead to inflation and tighter monetary policy, making investors pull out of risky assets like crypto and shift to safer options like gold or stablecoins.

• Weakening USD: If the trade war continues, countries may move away from the USD, which could make Bitcoin more attractive as a “safe haven”.

  → BitMEX co-founder Arthur Hayes believes that while Trump's tariffs could shake up the global economy, the resulting disruption might be just what Bitcoin needs to surge.

But in the short term, economic volatility often drags crypto down with the stock market.

• Supply chain issues: Tariffs on electronics and mining rigs from Asia countries raise costs for Bitcoin mining, impacting hashrate and miner profits.

• DeFi growth: As global trade tightens, DeFi could thrive as people seek alternative cross-border payment solutions.

→ In short, tariffs create short-term instability, pushing crypto prices down. But in the long run, if the USD weakens, DeFi grows, or economies print more money, Bitcoin and other digital assets could become more appealing.

2️⃣ What Analysts Are Saying

• David Hernandez (21Shares): "Volatility is expected, but clarity can help in the long term. The market likes certainty - even if tariffs are higher than expected."

• Scott Bessent (US Treasury Secretary): Asked other countries not to retaliate, saying this is a ceiling, not the start of a war. The goal is stability, not escalation.

3️⃣ Trader Takes

We’ve got 7 days to watch how countries respond.

If negotiations go well, we might see a market rebound by the end of the week. But if tensions rise... buckle up.

All actions by the U.S., including tariffs, are essentially aimed at reducing federal debt, capturing surplus wealth from other economies, and keeping gold prices down. By doing so, the Fed creates room to lower interest rates and stimulate economic growth.

Eventually, global economic imbalances will correct themselves. Governments will ease the pain by printing more money, and that’s good news for Bitcoin.

And do you remember in the previous issue when we mentioned gold vs. BTC? It's happening - nice plan! GOLD is cooling off, other assets are recovering, and BTC is breaking out of its trendline 👀

Cheap and easy money will return. Your job now is simple: wait patiently, stay flexible, and maintain cash reserves.

=> Your job now is simple: wait patiently, stay flexible, and maintain cash reserves.

• There are no tariffs on your code.

• There are no tariffs on your marketing.

• There are no tariffs on your skills and abilities.

⭐ 5 Things You Shouldn’t Miss

📊 $2.85 trillion was wiped off the U.S. stock market yesterday - a loss larger than the entire crypto market’s current market cap. This marks the worst day for U.S. stocks in the past four years. Despite this, Mr. Trump remained upbeat in an interview, saying, "We are still doing well, the market will explode" 🙏.

Expect plenty of market fluctuations until April 9, as countries retaliate against U.S. tariffs. Around 11:25 a.m. Eastern Friday, FED Chairman Powell will speak, and it’s highly likely he’ll address the recent market swings and potential interest rate cuts this year.

🚀 Fidelity's Solana ETF just got a step closer to approval! The SEC has acknowledged the application, which could lead to the first Solana ETF launching by year-end.

👎 While Ripple settled with a $50 million fine and avoided further legal battles, the case did not reach a higher court, meaning its impact on future crypto regulations is limited. The decision also left Ripple with a “bad actor” status, which affects its ability to offer institutional deals but doesn’t drastically alter its market strategy.

📌 While everyone was focused on Trump's tariffs, FDUSD quietly lost its peg, dropping 13% after Justin Sun warned that First Digital Trust was insolvent. With $2.2 billion in FDUSD, mostly from customer deposits, Binance could be in trouble if it can’t convert that amount to USD at a 1:1 ratio.

→ Just a reminder — Justin Sun is the boss of the Tron blockchain, and this issue is linked to USDT transactions.

📅 Crypto April Calendar

🤡 Meme Of The Day

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This newsletter is for informational purposes only and should not be considered investment advice. Traders should conduct thorough research, understand the risks, and carefully evaluate their decisions before investing in cryptocurrency.