Tariffs, Trade Wars and European Crypto expansion...

Hey, welcome back to another weekly macro and crypto update :)

As we wrap up another eventful week in the crypto world, it's clear that the landscape is brimming with bullish developments. Let's dive into the current state of the market and highlight some key events that underscore the growing momentum in the cryptocurrency space.

Market Overview

Despite recent volatility, the overarching narrative remains unchanged: liquidity is on the horizon. Historical data suggests a lag of approximately 70 to 110 days between liquidity injections and their market impact. This positions us for a potential uptick in early April through early May. While short-term fluctuations, such as reactions to political events like the Trump administration's tariff announcements, may cause temporary market jitters, these are often just noise in the grand scheme. The expectation is for markets to rebound, ideally in a V-shaped recovery, allowing us to proceed with business as usual.​

Key Developments

1. MicroStrategy's Aggressive Bitcoin Acquisition: Michael Saylor's Strategy has significantly bolstered its Bitcoin holdings, purchasing an additional 22,048 BTC for approximately $1.92 billion. This acquisition brings their total holdings to 528,185 BTC, acquired at an average price of $67,458 per Bitcoin. ​

2. Metaplanet's Strategic Bitcoin Acquisition: Japanese firm Metaplanet has significantly increased its Bitcoin holdings.The company issued 2 billion yen ($13.3 million) in zero-interest bonds to fund the purchase of an additional 160 BTC, bringing its total holdings to 4,206 BTC. This move underscores Metaplanet's commitment to integrating Bitcoin into its corporate strategy. ​

3. Mastercard's Crypto Integration Plans: Mastercard is developing a blockchain-based Multi-Token Network aimed at connecting traditional financial institutions with the cryptocurrency sector. This initiative could potentially enable Mastercard's 3.5 billion cardholders to transact seamlessly with Bitcoin and other cryptocurrencies, marking a significant step toward mainstream crypto adoption. ​

4. U.S. Treasury's Monetary Policy Adjustments: The U.S. Department of the Treasury has announced plans to borrow $123 billion in privately-held net marketable debt during the April–June 2025 quarter. This move is part of broader efforts to manage the nation's finances and could have implications for liquidity in the financial system. ​

5. Federal Reserve's Currency Production Plans: The Federal Reserve Board has approved a print order ranging from 4.1 billion to 5.9 billion notes for the calendar year 2025, valued between $83.2 billion to $113.0 billion. This decision reflects ongoing efforts to meet the public's demand for U.S. currency. ​

6. U.S. Treasury's Move Toward Digital Payments: In a bid to modernise financial transactions, the U.S. Treasury Department has announced plans to phase out paper check disbursements and receipts by September 30, 2025. This transition aims to enhance efficiency and reduce costs in government financial operations. ​

7. BlackRock's Expansion into European Crypto Market: Global asset management giant BlackRock has launched its first Bitcoin exchange-traded product (ETP) in Europe. The iShares Bitcoin ETP, domiciled in Switzerland and listed in Paris, Amsterdam, and Frankfurt, aims to tap into the growing demand for cryptocurrency exposure in the region. ​

8. BlackRock Gains UK Regulatory Approval: In a significant move, BlackRock has secured approval from the UK's Financial Conduct Authority (FCA) to operate as a crypto asset firm. This positions BlackRock to offer crypto services and products within the UK market, reflecting the firm's commitment to expanding its digital asset offerings. ​

Looking Ahead

The cumulative effect of these developments paints a promising picture for the crypto market. Institutional interest and adoption are on the rise, and as liquidity continues to flow into the system, we can anticipate positive movements in the market. While short-term volatility is to be expected, the long-term trajectory remains bullish.​

Stay informed, stay patient, and let's navigate this journey together.

B. Xx