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Market Instability Drives Shift Towards Digital Assets

Market Instability Drives Shift Towards Digital Assets

Apr-11-2025

Recent trade tariffs imposed by President Donald Trump have triggered significant upheaval in global financial markets. While conventional assets have experienced pronounced fluctuations, the cryptocurrency sector has notably maintained a sense of stability. This shift has encouraged both retail and institutional players to explore these alternative investment avenues in response to the heightened market volatility.

How Are Traditional Markets Performing?
Data from TradingView indicates a dramatic increase in the S&P 500’s annualized volatility, soaring from 50% to 169% post-tariff announcement. The Nasdaq and Dow Jones indices have mirrored this instability, with the S&P 500 losing roughly 14% in value over the past two months. This downturn has significantly impacted investor confidence, particularly in technology-focused stocks, intensifying the sense of panic.

Why Are Cryptocurrencies Gaining Popularity?
Despite the turbulence, the cryptocurrency market has demonstrated a relatively minor decline, with volatility reaching 83%, yet remaining more contained than stock market fluctuations. According to James Butterfill, Director of Research at CoinShares, this stability is prompting more investors to consider algorithmically driven assets that are less susceptible to political turmoil, thereby boosting interest in cryptocurrencies.

In addition, traditional safe-haven assets such as treasury bonds and the US dollar have not offered the expected levels of security. Treasury yields have increased to 4.45%, while the dollar index has dropped to a low not seen in the first quarter of the year, suggesting a break from historical economic patterns.

Are Investors Changing Their Strategies?
As the market environment evolves, investors are re-evaluating their portfolio strategies. The growing uncertainty and volatility have underscored the risks of one-dimensional investments, prompting a push for diversification. Hedge strategies are gaining traction as investors aim to balance their portfolios through informed, data-driven decisions.

Significant volatility in traditional markets has led to a search for stability in cryptocurrencies.
Investors are increasingly interested in algorithmically structured products.
Traditional assets are failing to provide the expected safety net during market fluctuations.
Portfolio reassessment is becoming essential as risks and strategies adapt to new market realities.
The current dynamics point toward a notable shift in how investors approach financial security. The cryptocurrency market is emerging as a distinct refuge, offering a decentralized alternative amid global economic uncertainties.

Bitcoin Price Reclaimed $83K, After Trump Announced 90-Day Tariff Pause

Bitcoin Price Reclaimed $83K, After Trump Announced 90-Day Tariff Pause

Apr-10-2025

Yesterday, Trump authorized a 90-day pause on tariffs, lowering the reciprocal tariffs to 10%.
Bitcoin’s price reacted to the announcement, surging above $83,000.
Earlier today, Bitcoin’s price surpassed $83,000, following yesterday’s Trump tariff-related announcement. The general crypto market is up by almost 7% in the past 24 hours.

Bitcoin Price Surged Above $83,000
Bitcoin recorded a significant price surge from $75,000 levels. The digital asset’s price debuted an ascendant trajectory on April 9, topping $83,000 earlier today.

At the moment of writing this article, BTC is trading above $82,000, up by 7% in the past 24 hours.
On April 9, BTC recorded a surge of over 5% in a short amount of time, following the US President’s tariff-related announcement.
Trump Delayed Tariffs by 90 Days
In a message on Truth Social, Trump announced some changes in his tariff policies. He began his message by saying that he is raising the tariff charged to China by the US to 125%, “based on the lack of respect” that China has been showing the world markets.
He continued by saying that hopefully, sometime in the near future, China will realize that the days of ripping off the US and other countries are no longer sustainable or acceptable.

Trump also stated that more than 75 countries have called Representatives in the US, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution regarding trade, tariffs, currency manipulation,n and non-monetary tariffs.

He said that based on the fact that these countries have not retaliated in any way or form against the US, he authorized a 90-day delay on tariffs, lowering reciprocal tariffs during this period to 10%, effective immediately.

Yesterday, following Trump’s announcement, both traditional and crypto markets reacted. Today, the crypto market is up by almost 7%.

Also, the markets expect to see whether the US Fed will decide to cut interest rates, following another recent message from the US President who advised the Fed’s Chair, Jerome Powell, to lower rates.

Mastercard and Kraken Bring Bitcoin Spending to Europe

Mastercard and Kraken Bring Bitcoin Spending to Europe

Apr-9-2025

Mastercard partners with Kraken to expand crypto payments in Europe
Users can spend Bitcoin at 150 million merchants worldwide
Partnership boosts Bitcoin’s utility and mainstream adoption

In a groundbreaking move, Mastercard has announced a partnership with leading crypto exchange Kraken to enable Bitcoin payments for users across Europe. This collaboration will allow Kraken users to spend their Bitcoin directly at over 150 million merchants worldwide where Mastercard is accepted.
This initiative bridges the gap between traditional finance and cryptocurrency, making it easier than ever for European users to use Bitcoin in everyday transactions—from buying groceries to booking flights.

How It Works
Through this partnership, Kraken will likely issue a Mastercard-powered debit card that links directly to users’ crypto wallets. This means users can pay in Bitcoin, with the transaction being converted seamlessly to local fiat currency at the point of sale. This makes the process simple for both the merchant and the consumer.

The service will support tap-and-go payments and online purchases, giving Bitcoin holders more flexibility and convenience in spending their digital assets.

A Boost for Crypto Adoption
The Mastercard-Kraken partnership represents more than just convenience—it marks a shift in how cryptocurrency is viewed in the mainstream financial world. By enabling Bitcoin to be used as easily as traditional currencies, this collaboration paves the way for broader acceptance of crypto in Europe and beyond.

The move could inspire more financial institutions and payment providers to integrate with crypto platforms, creating a more inclusive financial ecosystem.

Teucrium ETFs launches a leveraged XRP ETF

Teucrium ETFs launches a leveraged XRP ETF

Apr-8-2025

Wall Street asset manager Teucrium Investment Advisors is launching a leveraged exchange-traded fund that tracks XRP, the crypto tied to Ripple Labs and the center of a years-long battle with U.S. regulators.

The new fund, named the Teucrium 2x Long Daily XRP ETF, is designed to return twice the daily performance of XRP and will begin trading Tuesday under the ticker XXRP, based on details listed on Teucrium’s own site.

The company says this will be the first ETF in the U.S. to offer leveraged exposure to XRP, the fourth-largest crypto by market cap, currently valued at about $111 billion. The product comes with a 1.85% expense ratio.

Teucrium opens the fund after Ripple’s legal case gets dropped
Teucrium’s ETF filing confirms the company may eventually add XRP futures or other financial products tied to XRP, if the firm finds it appropriate. At the moment, there are no XRP futures actively trading on any major U.S. commodities exchange.
The launch comes just weeks after the U.S. Securities and Exchange Commission dropped its case against Ripple Labs, the company behind the creation of XRP.

The legal action had dragged on for years before being abandoned during the current Donald Trump administration, which has pulled back on a number of crypto enforcement efforts since returning to the White House. These rollbacks have included cases against Coinbase and Binance, which were both tossed in recent months.

Brad Garlinghouse, Ripple’s Chief Executive Officer, said during a Bloomberg TV interview last month that the dropped lawsuit “provides a lot of certainty for Ripple.” Despite that, Ripple and the SEC remain locked in other ongoing litigation.

Teucrium
Crypto markets as a whole have taken a hit since Trump’s election victory, with many of the gains made during the bull market now wiped out. Traders point to fallout from Trump’s tariff-heavy policies, which triggered a wave of sell-offs across the crypto space.

Sal Gilbertie, Teucrium’s founder and CEO, said during an interview that the current price dip made it a good moment to launch a new product. “What better time to launch a product than when prices are low?” he said. Gilbertie also claimed there has been strong investor interest in XRP, and he believes the leveraged angle will drive even more interest. “You can’t really time it. You just launch when you launch.”

BlackRock Buys More Bitcoin as Nasdaq Slides, Strengthens Crypto Bet

BlackRock Buys More Bitcoin as Nasdaq Slides, Strengthens Crypto Bet

Apr-7-2025

The BlackRock IBIT ETF acquired $25 million worth of Bitcoin at a time when Nasdaq continued its run of consecutive losses because institutions remain supportive of cryptocurrency markets.
Bitcoin maintained a 12 percent decline but delivered better results than the Nasdaq 100 which sank above 16 percent during the current year.
BlackRock's support for Bitcoin's long-term value is evident through the 78 percent increase in IBIT since its launch despite market fluctuations.

BlackRock kept increasing its Bitcoin investment by adding $25 million worth of Bitcoin to their spot ETF known as IBIT. Blockchain analysis company Arkham reports that BlackRock made its BTC buy at the time when Bitcoin reached a value near $83,300 and marked a 1 percent market rise on Friday. The Nasdaq 100 index showed a second day in a row of decreasing value.
Since the start of this year the Nasdaq 100 index has shown more than 16 percent decrease in its value. Bitcoin has experienced a minor 12 percent price decrease since the beginning of the year while maintaining stronger performance versus the tech-heavy index throughout multiple months. The repeated Bitcoin acquisitions by BlackRock throughout an unpredictable equity market demonstrate how institutions are increasingly adopting these assets for their investment portfolios.

Institutional Strategy Reflects Broader Conviction
BlackRock's strategy shows alignment because it continues to develop digital assets investments. Service provider Larry Fink voiced his apprehensions about the dollar's future position in the world economy earlier this year. Fink mentioned national debt and geopolitical tensions together with rising national debt as major challenges, which he mentioned in his holiday message to shareholders. Large investors throughout the market increasingly regard Bitcoin as an investment that will maintain its value over long periods.
Investors continue to dispute whether Bitcoin qualifies as a safe asset while the currency demonstrates stability in its recent trading values. Throughout history, Bitcoin demonstrated a substantial connection with high-risk financial instruments, particularly stock investments. The Bloomberg ETF analyst Eric Balchunas explains that Bitcoin functions best as an inflation shield against monetary policy changes. He defined it as dangerous due to market volatility and contrary to classic safe haven instruments.

The IBIT spot ETF managed by BlackRock has reached an impressive 78 percent rise after its debut twelve months ago and this tracks institutional investor acceptance. The continuous market condition uncertainty drives BlackRock and other firms to integrate Bitcoin as a valuable asset within diverse investment portfolios. Institutional backing for digital assets has progressed past limited speculative activities into a long-term sector with genuine interest.