Tariffs Hit Crypto, Not Gold

CRYPTO
Tariffs Hit Crypto, Not Gold

Bitcoin has long been called “digital gold,” a hedge against market turmoil. But during the latest Trump-inspired downturn, that comparison is faltering. After the 47th president unveiled aggressive tariffs against China and Europe, Bitcoin plunged 12% below $80,000, while gold slipped just 3% to $3,039. Since January, gold is up 16%, but Bitcoin has fallen 14%—matching the S&P 500’s decline and casting doubt on its safe-haven status.

Initially, Bitcoin appeared resilient, prompting praise from Gemini cofounder Tyler Winklevoss, who claimed it was decoupling from the stock market. But soon after, Bitcoin hit its lowest price of 2025. This mirrors past sell-offs: during COVID’s 2020 crash, Bitcoin dropped 30%, and in 2022 it plummeted 60% during an inflation-driven market collapse—far worse than gold or stocks. Despite Trump’s claim that the economy would “boom” under his tariff plan, markets sank, and analysts now warn of looming global recession risks.

FINANCE
Trump Escalates U.S.-China Trade War

China’s Commerce Ministry strongly opposed President Trump’s threat to escalate tariffs, promising countermeasures to defend its interests. This follows Trump’s warning of a 50% tariff hike on Chinese imports unless Beijing removes its own 34% duties imposed last week. China’s statement called the U.S. threat “a mistake on top of a mistake” and vowed to “fight to the end.” Beijing's retaliatory tariffs, effective April 10, build on earlier 10–15% duties, signaling fading hopes for a trade deal.

Trump’s tariffs now total 54% on Chinese goods, pushing the U.S. average tariff rate to 65%. Analysts warn this could cut China’s growth by up to 2%. Beijing has already curbed rare earth exports and added U.S. firms to its “unreliable entities list.” Meanwhile, the yuan hit its weakest level since 2023, which economists view as a warning to Washington. Despite market turmoil, Trump remains defiant, suspending talks and pushing the standoff further.

FINANCE
CEOs Brace for Economic Slowdown

BlackRock CEO Larry Fink warned that the U.S. may already be in a recession, echoing sentiments from many CEOs he speaks with. In a Monday interview at the Economic Club of New York, Fink said the economy is weakening and that he expects a deeper slowdown ahead. He pointed to persistent inflation and falling travel demand as signs of trouble, suggesting the Federal Reserve may not cut rates as hoped.

Global markets recently lost trillions in value after President Trump introduced sweeping tariffs, which Fink says could cause further stock declines. While viewing the downturn as a potential long-term buying opportunity, he cautioned markets could still fall another 20%. Fink also expects the U.S. dollar to weaken and consumer spending to drop. JPMorgan CEO Jamie Dimon warned of lasting damage to economic alliances without a resolution. Fink’s recent investor letter highlighted rising economic anxiety as a major global risk in 2025.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.