Market Overview

The market continues to react to ongoing U.S. tariff policies, but positive crypto regulatory developments are emerging.

On Wednesday, March 26, U.S. stock markets closed lower, with Dow Jones falling 0.31%, S&P 500 dropping 1.12%, and Nasdaq declining 2.04%. Gold remained stable at $3,022 per ounce, while oil stayed around $69 per barrel.

Bitcoin saw a slight correction but remained near $87,000, while several altcoins also adjusted downward. Total crypto market capitalization stood at $2.949 trillion.

Spot Bitcoin ETFs in the U.S. recorded another day of positive inflows, totaling $89.6 million. However, Ethereum spot ETFs continued to see outflows of $5.9 million.

U.S. stocks declined due to tariff concerns, but Bitcoin appeared less affected. Barclays lowered its S&P 500 target from 6,600 to 5,900, indicating expectations of a flat stock market this year with a mere 0.3% projected growth. This adjustment suggests Barclays doesn’t foresee a full recession but has tempered its expectations for stock market performance.

Meanwhile, U.S. workers' confidence in job stability is waning. The percentage of employees optimistic about their company’s business outlook fell to 44% in February, the lowest level recorded since 2016. The Glassdoor Employee Confidence Index has declined by 12% over the past two years, with the public administration and defense sectors seeing the steepest drops. Overall, 14 out of 24 tracked industries show declining employee sentiment, signaling growing economic uncertainty.

On the flip side, key economic data came in stronger than expected. The Core Durable Goods Orders for February rose 0.7%, surpassing forecasts of 0.2% and the previous month’s 0.1% increase. This metric, which excludes transportation-related orders, indicates that businesses are investing in equipment and tools, a positive sign of confidence in economic stability.

Despite these mixed signals, the market remains divided on whether a recession is imminent.

U.S. Tariff Updates

President Trump announced new automobile tariffs, which are expected to be officially confirmed this Wednesday. He stated that all non-U.S. manufactured cars will be subject to a 25% import tax.

While the White House has signaled a willingness to ease some tariff pressures, it remains firm on implementing reciprocal trade measures. The lack of clarity in official statements suggests that more tariffs could be introduced on April 2.

Investors should brace for potential volatility, as Trump may use sudden tariff hikes as leverage for future trade negotiations.

The European Union (EU) expressed deep regret over the U.S. decision, emphasizing that it will "defend its workers and businesses." The 25% tariff on automobiles will hit European exports particularly hard.

GameStop Invests in Bitcoin

GameStop officially announced plans to invest in Bitcoin, mirroring MicroStrategy’s strategy. Following this news, GameStop’s stock surged 16%.

The company stated that it might allocate portions of its cash reserves or future funding into Bitcoin and stablecoins, without setting an upper limit on its crypto holdings.

This move is part of CEO Ryan Cohen’s restructuring plan to revitalize the company. However, GameStop acknowledged the risk of crypto price volatility.

Shortly after, GameStop announced a $1.3 billion convertible bond issuance aimed at acquiring more Bitcoin, leading to a 6% pre-market drop in GME stock.

While the strategy mirrors MicroStrategy’s playbook, Wall Street analysts remain cautious about the long-term implications for GameStop’s stock performance. The company’s Q4 earnings report revealed a 28% year-over-year revenue decline, with adjusted EBITDA shrinking from $64.7 million to $36.1 million.

Ethereum's Pectra Upgrade Delayed

Ethereum’s Pectra upgrade, initially planned for April 2025, has faced multiple technical setbacks.

• Failed testnet launches on Holesky (Feb 24) and Sepolia (Mar 5).
• Next test on Hoodi scheduled for March 26.
• If successful, the mainnet launch is now expected on April 25.

Key Pectra Upgrades:

• Smart Contract-Enabled Wallets: EOA wallets (like MetaMask) will gain smart contract functionalities, improving security and usability.
• Enhanced Staking: Reduced latency for validators, enabling higher staking rewards.
• Increased Data Storage (Blob Space Expansion): 50% more storage, improving transaction speed and reducing costs.

Pectra Upgrade Roadmap:

• Phase 1 (2025):
  • Staking improvements (EIP-7251).
  • Wallet enhancements (EIP-7702).
  • Validator efficiency optimizations.
• Phase 2 (2026 - Fusaka):
  • Introduction of EVM Object Format & PeerDAS.
  • Increased Ethereum scalability and security.

Pectra will significantly enhance Ethereum's speed, cost efficiency, and staking capabilities, positioning it as a stronger competitor against alternative blockchain networks.

Crypto Regulation in the U.S.

Under President Trump’s administration, the SEC has shifted towards a more crypto-friendly stance.

Upcoming SEC Crypto Roundtable Events:

• April 11, 2025 – Regulatory Challenges in Crypto Trading.
• April 25, 2025 – Custody Concerns in Crypto Asset Management.
• May 12, 2025 – Tokenization & The Future of TradFi & DeFi.
• June 6, 2025 – DeFi and the American Economic Model.

These roundtables aim to promote transparency and public debate on crypto regulations, allowing both supporters and critics to shape U.S. crypto policies.

Meanwhile, President Trump signed an executive order allowing Bitcoin to be included in U.S. reserves. Additionally, several U.S. states are exploring Bitcoin allocations for pension funds:

• North Carolina proposed a 5% pension fund allocation into Bitcoin.
• Indiana introduced Bill 1322 to allow retirement funds to invest in Bitcoin ETFs.
• Kansas proposed up to 10% Bitcoin exposure for state pension funds.
• Florida is considering a bill that would permit state financial officers to invest up to 10% of public funds in Bitcoin and digital assets.

Paul Atkins’ SEC Confirmation Hearing

President Trump nominated Paul Atkins as the next SEC Chairman. His Senate confirmation hearing is scheduled for March 27.

Ahead of the hearing, Atkins disclosed that he owns shares in three crypto-related companies but does not directly hold Bitcoin or other cryptocurrencies. His net worth, along with his spouse, exceeds $327 million.

Given his past legal work with crypto firms, concerns over conflicts of interest have been raised. However, analysts expect the Senate to approve his nomination, barring any national security or ethical concerns.

Atkins argues that his crypto stock holdings do not equate to personal financial gain from SEC policy changes. If confirmed, his leadership could further reshape U.S. crypto regulations.

Additional Market Updates

• Michael Saylor’s Strategy (formerly MicroStrategy) completes an $8.5M STRF stock sale, raising $711M to buy more Bitcoin.
• The Blockchain Group (France) acquires 580 BTC ($47.3M), increasing holdings to 620 BTC.
• Fidelity files Form 19b-4 with the SEC to launch a Solana Spot ETF, marking a major step toward regulatory approval.
• Grayscale updates its "Top 20" altcoin holdings, adding Maple (SYRUP), Geodnet (GEOD), and Story Protocol (IP).
• BBC praises Gridless Compute for using hydroelectric power to mine Bitcoin in Zambia, reducing local electricity costs.
• Mt. Gox moved 11,501 BTC (~$1B) to repay creditors, but market impact was minimal compared to past news cycles.