Market Overview

The U.S. stock market closed higher on Friday, March 21, with all three indices recording gains. The Nasdaq led with a 0.52% increase, while gold remained strong at $3,028 per ounce and crude oil hovered around $68 per barrel.

Bitcoin declined slightly after a brief surge, stabilizing around $84,000. Some altcoins saw significant losses, while others, including major ones, experienced modest gains. The total crypto market capitalization stands at $2.855 trillion.

The percentage of Bitcoin supply in profit adjusted slightly to 78.3%, remaining far from the danger zone.

U.S. spot Bitcoin ETFs continued to see inflows, with $83.1 million added on March 21. BlackRock’s IBIT ETF saw $105 million in inflows, while Grayscale’s GBTC experienced $21.9 million in outflows. Meanwhile, ETH spot ETFs recorded a net outflow of $12.5 million.

Investors Brace for April 2: Trump Signals Tariff Adjustments

The market remains on edge due to growing recession fears and the impact of Trump’s tariffs. Investors are awaiting Trump’s next announcement on April 2, which will determine the next phase of his tariff strategy.

Despite maintaining his tough stance on trade, Trump hinted at potential “flexibility” in his retaliatory tariff plans. While he remains opposed to making broad exemptions, his remarks suggest the possibility of adjustments based on economic conditions.

Trump’s planned discussions with Chinese President Xi Jinping have further heightened market anticipation. A trade war between the world’s two largest economies would have widespread consequences for global markets, including equities, commodities, and cryptocurrencies.

Despite short-term volatility, the long-term trajectory for assets like Bitcoin and equities remains upward. The continuous expansion of money supply, fiat currency devaluation, and inflationary pressures reinforce the case for hard assets such as Bitcoin and gold.

Historically, periods of market stagnation and corrections have led to strong rebounds. Bitcoin’s price fluctuations between $50,000 and $70,000 last year tested investor patience, yet the long-term trend remained intact.

This market is not for the faint-hearted. Short-term volatility is unpredictable, and only patient, long-term investors tend to capture the full upside potential.

Trump Administration’s Crypto Policies and Market Impact

President Trump continues to demonstrate strong support for the crypto industry, following through on his campaign promises. However, further progress requires congressional backing to enact lasting regulatory reforms.

Trump’s involvement in crypto extends beyond policy, as evidenced by his recent NFT releases. His campaign manager, Bo Hines, confirmed that the administration is exploring various Bitcoin-supportive initiatives, emphasizing that Bitcoin should be regarded as digital gold.

The Trump administration aims to position the U.S. as a global leader in crypto innovation. This effort was reinforced by a recent meeting between Trump’s crypto advisor and the UAE’s National Security Council, discussing crypto, AI, emerging technologies, and investment opportunities.

Following the talks, the UAE committed to investing $1.4 trillion in the U.S. over the next decade, focusing on AI, semiconductors, energy, and manufacturing. This signals significant long-term capital inflows into the U.S. technology and crypto sectors.

Strategic Shifts in U.S. Financial and Crypto Regulations

Trump’s influence over crypto extends beyond policy, as demonstrated by his appointment of Eric Trump to the advisory board of Metaplanet, a major crypto-focused investment firm.

In a surprising regulatory development, the U.S. Treasury removed Tornado Cash from OFAC sanctions, signaling a potential shift in regulatory stance toward decentralized finance (DeFi).

The SEC is also undergoing significant restructuring. The commission’s crypto task force has announced its first regulatory roundtable, reflecting greater openness to engaging with the industry.

Additionally, hundreds of SEC employees have resigned, accepting buyout packages under Trump’s leadership. This exodus may reshape the agency’s regulatory approach, particularly concerning crypto-friendly policies.

Under Trump’s administration, the U.S. crypto sector is experiencing its most favorable policy environment in years, driven by regulatory clarity, institutional adoption, and international cooperation.

MicroStrategy (Strategy) Expands Bitcoin Strategy with New Funding Models

MicroStrategy, now known as Strategy, has introduced two new preferred stock offerings, STRK and STRF, to raise funds for additional Bitcoin acquisitions.

• STRK: Pays an 8% annual dividend and is convertible into MSTR common stock, offering both yield and growth potential.
• STRF: Offers a higher dividend of 10%-18% but is non-convertible, providing higher yields but without exposure to MSTR stock appreciation.

This dual-structure approach targets different investor risk appetites:

• STRK appeals to investors seeking both dividends and capital appreciation.
• STRF caters to those prioritizing high yields over stock price movements.

MicroStrategy’s unwavering Bitcoin strategy continues to attract institutional capital, underscoring strong market confidence in BTC as a long-term asset.

Other Key Market Developments

Bitwise Seeks to Integrate Staking into Ethereum ETFs

Bitwise has submitted a proposal to incorporate staking rewards into its Ethereum ETF, marking a major step toward integrating passive income mechanisms into institutional crypto products.

Coinbase in Talks to Acquire Deribit

Coinbase is reportedly in advanced negotiations to acquire Deribit, the largest Bitcoin and Ethereum options trading platform. A successful deal would solidify Coinbase’s dominance in the crypto derivatives market.

More Publicly Listed Companies Buying Bitcoin in Asia

Hong Kong-based HK Asia Holdings has disclosed a recent Bitcoin purchase of 10 BTC (~$858,500 USD), joining the growing list of publicly traded firms adding BTC to their balance sheets.

Telegram’s TON Raises $400M from Top VCs

The Open Network (TON), closely integrated with Telegram, secured $400 million in funding from Sequoia, Ribbit, Benchmark, and Draper Associates. The capital will drive TON’s expansion into payments, advertising, and gaming within Telegram’s ecosystem.

LG to Shut Down NFT Marketplace Art Lab

LG announced plans to shut down its NFT marketplace on smart TVs by June, citing poor market conditions. The platform launched at the peak of the NFT hype in September 2022 but struggled as NFT valuations plummeted by over 70%.