Market Overview

The U.S. stock market and crypto market rebounded sharply to start the week, boosting investor optimism. Several key factors influenced this recovery.

This week, investors are monitoring the U.S. PMI report released on Monday, alongside upcoming jobless claims data, PCE inflation figures, and multiple speeches from Federal Reserve officials.

On Monday, March 24, the U.S. stock market surged following President Trump’s tariff announcement, with all three major indices rising over 1%. The Nasdaq led the charge with a 2.27% gain. Gold dipped slightly but remained elevated at $3,017 per ounce, while oil climbed above $69 per barrel.

Bitcoin followed a similar trajectory, rallying to $88,000 before stabilizing around $86,700. Most major altcoins posted gains, lifting the total crypto market capitalization to $2.947 trillion.

Spot Bitcoin ETFs in the U.S. recorded another day of net inflows, adding $84.2 million. Meanwhile, ETH spot ETFs saw no inflows or outflows, marking a pause after consecutive days of withdrawals.

Trump Administration Eases Tariff Fears – Market Optimism Returns

The primary catalyst behind the market’s rally was the White House’s decision to scale back the scope of tariffs set for April 2. The administration will not impose sector-specific tariffs on industries like automotive and semiconductors, although reciprocal trade measures will still move forward.

Additionally, President Trump hinted at potential tariff relief for multiple nations and announced upcoming duties on foreign automobiles.

Markets had been pricing in worst-case tariff scenarios, prompting sell-offs in both stocks and crypto in recent weeks. However, with clarity on reduced trade restrictions, investors are adjusting their positions accordingly.

President Trump also reaffirmed his stance on interest rates, stating:

“I want to see the Fed cut rates.”

While Fed Chair Jerome Powell has indicated a willingness to lower rates, actual policy decisions depend on inflation trends and unemployment data. The Fed began cutting rates in September 2024, but future reductions will likely require either further inflation declines or a rise in unemployment.

For now, markets prefer inflation cooling over higher unemployment, as job losses could have more severe economic repercussions.

One short-term risk is that trade tensions could reignite inflation, complicating the Fed’s easing cycle. Atlanta Fed President Raphael Bostic has already revised his rate cut outlook from two reductions to just one in 2025.

Economic data released on Monday highlighted mixed signals:

• U.S. manufacturing PMI fell to 49.8, missing forecasts of 51.9 and last month’s 52.7. A reading below 50 indicates contraction.
• U.S. services PMI jumped to 54.3, exceeding expectations of 51.2 and last month’s 51%.

While the manufacturing sector is slowing, the strong services PMI suggests economic resilience. Paradoxically, weak economic data can sometimes be bullish for markets, as it increases the likelihood of Fed rate cuts.

U.S. May Use Gold Reserves to Buy Bitcoin

Bo Hines, a senior White House advisor, revealed that the U.S. may use its gold reserves to acquire Bitcoin, aligning with the 2025 Bitcoin Act proposed by Senator Cynthia Lummis. The bill aims to accumulate 1 million BTC over five years, a move fully backed by President Trump to strengthen America’s digital asset dominance.

If implemented, this would mark a historic shift in U.S. monetary policy, signaling official recognition of Bitcoin as a strategic reserve asset.

Regulatory Shifts: SEC Adopts a Pro-Crypto Stance

Under Gary Gensler’s leadership, the SEC aggressively cracked down on crypto firms, but the Trump administration has reversed course.

The acting SEC Chair recently stated that the commission will focus on traditional financial fraud cases, such as elder financial abuse and corporate misconduct, rather than targeting crypto companies.

With less regulatory pressure, the crypto industry is gaining momentum, and major firms are advancing new blockchain applications.

One notable example is World Network, a blockchain initiative led by Sam Altman. The network is in talks with Visa to integrate stablecoin payments, potentially expanding crypto adoption in global retail transactions.

World Network’s Vision:

• Enhancing self-custody wallets with Visa integration.
• Facilitating fiat on/off ramps for crypto payments.
• Supporting stablecoin transactions across Visa’s merchant network.

While the U.S. embraces stablecoins, China has raised concerns over the growing dominance of USD-backed digital assets like USDT and USDC. Chinese economist Zhang Ming warned that if USD stablecoins continue to expand, competing national currencies could struggle.

In response, China is accelerating the international rollout of its digital yuan (e-CNY), integrating it into cross-border transactions to counterbalance the influence of U.S. stablecoins.

This underscores an ongoing global financial shift, with:

• The U.S. backing stablecoin expansion.
• Europe developing its own "digital euro."
• China pushing for broader e-CNY adoption.

Additional Key Market Updates

President Trump’s Foreign Policy Moves

President Trump announced a 25% tariff on any country purchasing Venezuelan oil, effective April 2. He also accused Venezuela of sending Tren de Aragua gang members to the U.S.

Meanwhile, Turkey has banned short selling to stabilize its stock market amid growing civil unrest. Istanbul’s mayor, Ekrem İmamoğlu, a key opposition figure, was arrested on corruption and terrorism charges, sparking mass protests.

Major Corporate Investment Announcements

• Hyundai to invest $20 billion in the U.S., including a $5 billion steel plant in Louisiana.
• Apple commits to a record $500 billion investment in U.S. manufacturing, AI, and workforce development over the next four years.
• UAE pledges $1.4 trillion in U.S. investments over 10 years, targeting AI, semiconductors, and energy.
• SoftBank announces a $100 billion U.S. investment focusing on AI and infrastructure.

Institutional Bitcoin Accumulation

• MicroStrategy (Strategy) acquired 6,911 BTC for $584 million, bringing its total holdings to over 500,000 BTC at an average cost of $66,608 per BTC.
• Metaplanet added 150 BTC, increasing its reserves to 3,350 BTC.

Bitcoin and AI Developments

• El Salvador launches CUBO AI, a government-backed initiative offering university-level AI education. Ark Invest CEO Cathie Wood is scheduled to give the opening lecture.
• Tokyo-listed Open House now accepts XRP, SOL, and DOGE for real estate transactions, expanding beyond its previous BTC and ETH payment options.

Stablecoin Transparency Initiatives

• Tether is negotiating an independent audit with a Big Four accounting firm, aiming to counter critics questioning its reserve backing.