Over the past week, as tariff threats lingered and broader economic doubts remained unaddressed, it seemed that the surge was driven more by hopefulness rather than solid conviction.
This editorial is from last week’s edition of the Week in Review newsletter. Subscribe to the weekly newsletter to get the editorial the second it’s finished.
Last Week The Question Was: Are Tariffs Priced In?
Crypto markets are doing relatively well at the moment, although fear still persists. The most likely explanation for this dynamic is that market participants have priced in certain risks such as tariffs and global tensions, but macroeconomic uncertainty still remains.
Currently, markets are performing fairly well since they have factored in the negative news, which has led to a decrease in future expectations. Given these adjustments and the majority of economic indicators still pointing positively, it’s reasonable to expect markets will continue their upward trend. However, there is some uncertainty that hasn’t yet been fully accounted for in market prices.
Primarily focusing on, the upcoming Liberation Day next Wednesday, which marks the commencement of Trump’s retaliatory tariffs. The questions about other countries’ responses, Trump’s actions, and the potential size of the tariffs all contribute to a growing sense of ambiguity.
In the upcoming week, I’m hoping for a peaceful resolution to the tariff issue. However, if it remains unresolved, a question that intrigues me is this: if the tariffs turn out to be more detrimental than what investors anticipate, will conventional U.S. markets experience a harsher impact compared to Bitcoin? Historically, Bitcoin (and cryptocurrencies) tend to perform poorly or at best similarly during traditional market downturns.
Although many individuals I follow on social media suggest that this time could be unique, there are several reasons to believe otherwise when it comes to Bitcoin compared to US equities. Firstly, Bitcoin has experienced steeper corrections, with its peak drawdown reaching 30%, while US equities only saw a drop of 10%. This trend indicates that money is being withdrawn from the U.S. and invested in local markets, which are experiencing growth.
Additional factors such as tariff issues, overvaluation of US equities, and undervaluation of local markets might exacerbate this outflow from the U.S. However, Bitcoin, being a global asset, may be less affected by these developments due to its ability to absorb liquidity more effectively than US equities.
Furthermore, while the United States is tightening monetary policy, countries like Germany and China are easing. Given Bitcoin’s global status, it could potentially benefit from this influx of liquidity more than US equities.
All of these points are logical and quite persuasive, but I ultimately disagree that bitcoin will float if U.S. equities tank for the simple fact that, “the market can remain irrational longer than you can stay solvent,” as Keynes famously said. I believe markets will act irrationally. If U.S. equities fall, bitcoin falls the same amount or more. Graham Stone said on this week’s Token Narratives that if this happens, “buy bitcoin with both hands.” I concur!
Regarding the immediate discussion, it’s primarily focused. However, when we look at the medium to long-term perspective, Bitcoin appears to be remarkably poised for price growth. This past week has been brimming with optimistic news about businesses incorporating Bitcoin into their financial records.
When Saylor first started snapping up BTC via his company, formerly known as Microstrategy, it led to a significant bump in the stock price. Many speculated at the time that eventually, Microstrategy’s success could lead to a new playbook for companies—
especially companies with fading relevancy.
We finally might be seeing companies pile into this trade. Metaplanet, a Japanese hotel developer that bought its first bitcoin less than a year ago on April 8, 2024, has seen its stock price soar more than 2,300% since that date. With its latest purchase on Monday, it now holds 3,350 BTC. The CEO posted on Monday on X in Japanese, “Today, the company recorded a record high trading value of 50.4 billion yen. It is ranked 13th in terms of trading value in Japan, surpassing Toyota, which has the highest market capitalization.”
On Wednesday, Gamestop announced it is raising $1.3 billion to begin its Bitcoin treasury strategy. It is raising money despite holding $4.76 billion in cash, which mirrors an aggressive, Microstrategy-style playbook. Saylor responded to the announcement by posting a poll on X suggesting Gamestop should buy over $3 billion in Bitcoin to earn BTC legitimacy. Stay classy Saylor!
Also this week, a French Bitcoin Treasury Company bought 580 BTC, and earlier this month Rumble bought 188.
Read More
- Ludus promo codes (April 2025)
- Cookie Run Kingdom: Shadow Milk Cookie Toppings and Beascuits guide
- Cookie Run: Kingdom Topping Tart guide – delicious details
- Unleash the Ultimate Warrior: Top 10 Armor Sets in The First Berserker: Khazan
- Grand Outlaws brings chaos, crime, and car chases as it soft launches on Android
- Seven Deadly Sins Idle tier list and a reroll guide
- Grimguard Tactics tier list – Ranking the main classes
- Val Kilmer Almost Passed on Iconic Role in Top Gun
- Maiden Academy tier list
- Tap Force tier list of all characters that you can pick
2025-04-05 08:00