Market Overview

The crypto market received a series of bullish developments, with major policy shifts in the U.S. and increasing corporate adoption of tokenization.

On Tuesday, March 25, U.S. stock markets closed in positive territory, with Nasdaq leading the gains at 0.46%. Gold rose slightly to $3,026 per ounce, while oil remained steady at $69 per barrel.

A key economic report revealed that U.S. Consumer Confidence Index for March fell to 92.9, missing estimates of 94.2 and significantly dropping from 100.1 in February. This marks the lowest level since February 2021, indicating weakening consumer sentiment.

This decline in consumer optimism could help curb inflation, as cautious spending typically reduces demand-driven price pressures.

In crypto, Bitcoin traded at $87,900, while major altcoins saw impressive gains, with Solana (SOL) surging 14%. The total crypto market capitalization climbed to $2.99 trillion.

Additionally, on Friday at 3 PM (Vietnam time) / 1 AM (California time), 139,000 BTC ($12 billion) options will expire on Deribit, with a max pain level at $85,000. Ethereum’s max pain price is set at $2,400, with $2.2 billion in contracts expiring. Market movements often gravitate toward max pain levels, as it’s the price where most traders suffer losses.

Meanwhile, GameStop officially approved a Bitcoin purchase strategy, similar to MicroStrategy’s approach. Following the announcement, GameStop’s stock surged over 6% in extended trading. The company has not set a limit on how much Bitcoin or USD stablecoins it will acquire.

Tariff Updates

India Considers Cutting Import Tariffs on U.S. Goods

India is reportedly considering reducing import tariffs on over half of its U.S. imports, totaling $23 billion, as part of an ongoing trade deal. This would be India’s largest tariff reduction in years, aimed at avoiding retaliatory tariffs from President Trump.

Indian government sources indicate that U.S. counter-tariffs could impact 87% of India’s exports to the U.S., valued at $66 billion.

As part of the agreement, India could lower tariffs on 55% of U.S. imports, which currently face duties ranging from 5% to 30%. Some products might see drastic tariff cuts or full exemptions, improving trade relations between the two nations.

Broader U.S. Trade Policy Perspective

During a recent meeting, the U.S. Treasury Secretary emphasized plans to privatize sectors of the economy, reduce public spending, and streamline government operations. Additionally, the administration aims to “re-leverage” the banking sector to stimulate growth, while transitioning public sector job cuts to private industry roles.

Key takeaways from U.S. economic policy shifts:

• Banking system re-leveraging to encourage growth.
• Deregulation in energy and private sector expansion to lower interest rates.
• Since January 20, mortgage rates have fallen weekly, and energy prices have dropped by 15%.
• Lower interest rates could ease mortgage, credit card, and auto loan payments.

President Trump believes long-term tariff policies will attract foreign investments, boost domestic exports, and strengthen the job market, fueling stock market growth.

Despite short-term market volatility due to tariffs, Trump’s administration maintains that the U.S. economy will benefit in the long run.

However, concerns about a potential recession remain. Analysts at Kobeissi Letter pointed out that since January 31, the S&P 500 and the U.S. Dollar Index (DXY) have both dropped by -6.5% and -3.5%, respectively—an unusual correlation.

The last time these two indices fell simultaneously was during the 2008 financial crisis. Historical data suggests that it typically takes 12-18 months after the Fed’s first rate cut to see recessionary effects. Since the first cut occurred in September 2024:

• If a 12-month recession lag applies, economic weakness could surface by September 2025.
• If it takes 18 months, signs of recession may appear by March 2026.

The market remains in a waiting phase, and only time will tell if Trump’s economic policies will ultimately avoid a recession.

Trump Media Partners with Crypto.com for TruthFi ETFs

Trump Media has partnered with Crypto.com to launch TruthFi ETFs, featuring Bitcoin, Cronos (CRO), and U.S.-focused stocks.

Key Details of the TruthFi ETFs:

• Crypto.com provides custody and technology services.
• The ETFs are set for a global rollout later this year.
• Trump Media has allocated up to $250 million, custodied by Charles Schwab.

Following the announcement, Trump Media’s stock surged in after-hours trading, reflecting strong investor interest in crypto-related financial products.

World Liberty Financial Launches Stablecoin

World Liberty Financial (WLFI), backed by President Trump, announced the launch of USD1, a stablecoin pegged 1:1 to the U.S. dollar. However, USD1 targets institutional investors rather than retail users, differentiating it from Circle’s USDC or Tether’s USDT.

Key Features of USD1:

• 100% backed by U.S. Treasury bonds, cash deposits, and cash equivalents.
• Initially launched on Ethereum (ETH) and Binance Smart Chain (BSC), with plans for multi-chain expansion.
• Audited by third-party firms for transparency and stability.
• Custody provided by BitGo, a leading digital asset security provider.
• Designed for institutional liquidity and stability.

This marks the first major U.S.-backed stablecoin project to support Binance Smart Chain (BSC), a network often overlooked by American institutions.

U.S. Banks Enter the Stablecoin Market

In addition to Trump-backed USD1, several U.S. banks are now launching stablecoins following the rollback of SAB 121 regulations.

Recently, Custodia Bank and Vantage Bank introduced Avit, the first U.S. bank-issued stablecoin on Ethereum (ERC-20).

How Avit Works:

• Avit tokenizes bank deposits, allowing seamless transactions without relying on ACH or traditional bank networks.
• Users receive Avit tokens, which function like stablecoins.
• When converting to cash, Avit tokens are redeemed via traditional banking systems.

U.S. Tokenization Boom

The tokenization of real-world assets is accelerating across the U.S.:

• BlackRock’s tokenized money market fund (BUIDL) expands to Solana.
• CME Group and Google Cloud are developing Universal Ledger, a tokenization framework launching in 2026.
• Michael Sonnenshein, COO of Securitize (ex-CEO of Grayscale), highlighted the growing trend of tokenized securities.

Securitize, which has tokenized $2.5 billion in assets, is partnering with BlackRock, Apollo, and KKR to modernize investments.

“The U.S. is becoming more crypto-friendly as lawsuits are dropped and regulators shift their stance. The White House and SEC’s policy changes confirm America’s ambition to lead in Bitcoin and blockchain.” – Michael Sonnenshein, Securitize COO.

Additional Market Updates

• Circle becomes the first and only stablecoin approved in Japan, in partnership with SBI Holdings.
• Kraken is exploring a $1 billion debt raise as part of its expansion strategy.
• Kentucky passed the "Bitcoin Rights Act" (HB701), protecting Bitcoin custody, mining operations, and tax exemptions.
• River Financial estimates that inflation has actually surged 363% since 2000, compared to the official CPI estimate of 88%.
• Standard Chartered replaced Tesla with Bitcoin in its "Mag 7" stock index, yielding higher returns with lower volatility.
• Ripple and SEC officially ended their lawsuit, reducing Ripple’s penalty to $50 million instead of $125 million.

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