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Born Again Crypto Newsletter – April 13, 2025
Hey there,
This week has been a whirlwind in the financial markets, with significant developments that have implications for both traditional assets and cryptocurrencies. Let's delve into the key events and what they mean for the crypto landscape.
Market Overview: Tariffs, Stocks, and Safe Havens
The financial markets experienced heightened volatility following President Trump's announcement of sweeping tariffs.The S&P 500 plummeted by 12% over four trading sessions, prompting concerns about a potential recession. In response to mounting pressure from investors and business leaders, the administration implemented a 90-day pause on most tariffs, excluding those on Chinese imports, which were increased to 125%.
This policy shift led to a temporary rally in the stock market, with the S&P 500 surging 9.5%, the Dow Jones Industrial Average climbing nearly 3,000 points, and the Nasdaq jumping 12.2%, its largest gain since 2001. However, the relief was short-lived as market uncertainty persisted, and stocks resumed their decline.
At this point it’s a question of whether the pending May liquidity boom will pull the Nasdaq and others with it or whether we will begin to see a rollover in the markets.
Gold's Ascent: A Signal of Shifting Sentiment
Amid the turbulence, gold emerged as a preferred safe-haven asset. Prices soared to an all-time high of $3,219.84 per ounce, driven by investor concerns over the escalating trade war and a weakening U.S. dollar. This surge underscores a broader trend where liquidity often first flows into gold during periods of economic uncertainty.
Bitcoin: Poised for the Next Wave
Historically, after liquidity moves into gold, it often follows into Bitcoin. While Bitcoin has experienced some volatility, the underlying fundamentals remain strong. Institutional interest continues to grow, and the increasing correlation between liquidity injections and Bitcoin's price suggests that the cryptocurrency is well-positioned for future gains.
Key Takeaways
Market Volatility: Expect continued fluctuations as the global economy grapples with trade tensions and policy shifts.
Safe-Haven Assets: Gold's record highs indicate a flight to safety, a trend that could benefit Bitcoin in the near future.
Liquidity Influx: With central banks injecting liquidity into the markets, assets like Bitcoin stand to gain as investors seek alternatives to traditional investments.
Stay informed and stay the course.
B. Xx