U.S. Market Recovers, Crypto Breaks Out

Tuesday, April 22, marked a notable shift in investor sentiment as U.S. stock markets rebounded sharply with all three major indexes—Dow Jones, S&P 500, and Nasdaq—rallying over 2%. Futures continued the trend with modest gains. Meanwhile, gold and oil prices hovered at $3346/oz and $64/barrel, respectively, as macro uncertainty persisted.

Bitcoin surged to over $93,000 before stabilizing around $94,000, signaling renewed strength after weeks of stagnation. The broader crypto market followed suit, pushing total market capitalization above $3.036 trillion.

Inflows into U.S. spot BTC ETFs hit $912.7 million on the day, led by major players like BlackRock and Fidelity. Ethereum ETFs also saw renewed interest, pulling in $38.8 million. The sentiment reversal was stark compared to the pessimism just a week prior.

Despite previous bearish conditions, the abundance of M1 and M2 liquidity reveals that capital is ready to be deployed into risk assets. With inflation, tariffs, and recession fears still looming, any positive catalyst—especially progress on trade agreements—could unleash significant upside.

Trump Clarifies Fed Position Amid Market Tensions

President Trump clarified that he has no intention of firing Federal Reserve Chair Jerome Powell, despite media speculation and mounting pressure. Trump emphasized that his primary wish is for the Fed to act decisively and cut interest rates immediately. He labeled the current macro environment as the “perfect time” for monetary easing.

The debate over Fed independence reignited, especially as Powell maintains a data-driven approach, resisting political influence. Notably, Bank of America’s CEO echoed a contrary view, suggesting the Fed won’t cut rates this year due to stubborn inflation—largely driven by tariffs and trade-related shocks.

According to CME data, markets still expect rate cuts to begin in June, totaling 100 basis points by year-end. However, that hinges on future CPI data and whether recessionary forces outweigh inflationary ones.

Tariff Outlook Eases, Deal with China on the Horizon?

Markets responded positively to developments on the U.S.–China trade front. White House Press Secretary Karoline Leavitt announced that progress was being made toward a potential deal. Trump confirmed that future tariff levels on Chinese imports would be “far lower” than the previously suggested 145%, signaling a de-escalation.

This more conciliatory tone was mirrored by China’s Ambassador to the U.S., Xie Feng, who called for peaceful coexistence and warned that continued trade hostilities could destabilize the global economy. These comments followed in-person trade talks held in Washington, a sign that negotiations may finally be yielding fruit.

With Trump backing off his earlier hardline stance and both sides showing willingness to compromise, market participants are increasingly hopeful that a deal could be finalized within weeks. However, economic damages—especially rising consumer prices and reduced corporate margins—remain a looming threat if talks break down.

Global Diplomatic Responses

China continued its diplomatic efforts, urging Japan, the UK, and the EU to oppose U.S. tariffs. Prime Minister Li Qiang of China sent a direct appeal to Japanese PM Shigeru Ishiba calling for coordinated resistance. Meanwhile, Chinese Foreign Minister Wang Yi urged Europe to uphold multilateralism and challenge American unilateralism.

The U.S., however, expanded its trade momentum elsewhere. Vice President JD Vance confirmed that a new trade dialogue had officially begun with India. In total, 34 new trade initiatives were launched this week alone, according to the White House. Trump’s administration aims to “act with Trump-speed” to protect U.S. workers and consumers while reshaping the global trade landscape.

Bitcoin: The Emerging Safe Haven

As equities waver under trade and rate uncertainty, Bitcoin has begun to decouple from the Nasdaq. CNBC and Bloomberg both reported on BTC’s increasing correlation with gold, rather than tech stocks. In April alone, Bitcoin rose over 6%, while the Nasdaq 100 dropped by 6.5%. This divergence highlights BTC’s evolving role as a safe haven asset.

Despite criticism over its lack of intrinsic value, Bitcoin’s independence from corporate earnings or central bank policy makes it increasingly attractive. Its resilience through multiple macro crises has only reinforced investor confidence.

As Treasury Secretary Bessent stated: "Understanding finance means understanding the system. And if you understand the system, you understand Bitcoin." This shift in thinking is reflected in rising crypto allocations by institutions and the public alike.

Regulatory Acceleration in the U.S.

New SEC Chairman Paul Atkins reiterated his commitment to establishing a clear and principled framework for digital assets. The public-private push is accelerating with notable developments: Trump Media has partnered with Crypto.com to launch the TruthFi ETF, blending equities and digital assets.

Coinbase is exploring a federal banking license, while Charles Schwab is preparing to roll out spot crypto trading within a year.

Legislatively, the Strategic Bitcoin Reserve Bill continues to gain Republican support. Meanwhile, Circle’s rollout of a stablecoin-powered remittance network out of the One World Trade Center is poised to challenge Visa and Mastercard in global transfers.

Major financial institutions like Deutsche Bank, Standard Chartered, and Charles Schwab are actively expanding into U.S. crypto markets. Schwab reported a 400% increase in crypto-related site visits, with 70% of traffic from new users.

Bitcoin’s breakout past $94,000 marks a potential inflection point in its macro narrative. As uncertainty around tariffs, inflation, and interest rates persists, BTC’s appeal as a non-sovereign store of value continues to grow. The shift in Trump’s rhetoric on tariffs and Powell, alongside massive ETF inflows and regulatory momentum, positions Bitcoin as the standout asset in 2024’s turbulent economic landscape.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Please conduct your own research before making any investment decisions.