The cryptocurrency market remains cautious ahead of former U.S. President Donald Trump’s tariff announcements scheduled for April 2, dubbed “Liberation Day.” Bitcoin is slightly above $83,000, rising 1.8% over the last 24 hours, while Ethereum also shows moderate growth, reaching approximately $1,837. Other major cryptocurrencies, such as XRP and Solana, are experiencing modest gains, but overall, the market is awaiting concrete details of the new trade tariffs. Analysts suggest that investors are currently cautious due to uncertainty regarding the potential impact of Trump’s promised tariffs. Some market participants see a short-term buying opportunity, believing the initial reaction might have been exaggerated, while others prefer to wait until the extent and consequences of these trade measures become clearer.

The context is particularly sensitive as the first quarter of 2025 proved disappointing for Bitcoin, marking its worst performance since 2018 with a drop of nearly 12%. This correction followed a euphoric period during which Bitcoin peaked above $108,000 in January. Recent U.S. tariffs on imports from Canada, Mexico, and China, combined with higher-than-expected U.S. inflation, have dampened the crypto market, contradicting initial expectations of an extended bull market driven by Trump’s pro-crypto policies. Despite this setback, several experts foresee a potential recovery in the second quarter of 2025, supported by an anticipated interest rate cut by the U.S. Federal Reserve and gradual implementation of favorable crypto measures promised by Trump. Institutional capital inflows could also play a crucial role, possibly pushing Bitcoin back toward the symbolic $100,000 mark, provided it first breaks significant resistance around $88,000–$90,000.

French Hill, Chairman of the U.S. House Financial Services Committee, has unusually criticized Donald Trump’s personal activities in the cryptocurrency sector. According to Hill, investments by Trump and his family in projects such as “meme coins” and stablecoins complicate lawmakers’ efforts to establish clear regulations for digital assets. Since returning to power, Trump and his entourage have significantly invested in cryptocurrencies, notably launching a Solana-based meme coin and a decentralized finance platform called World Liberty Financial, which includes a stablecoin. These projects have generated hundreds of millions of dollars in profits for the Trump family, with potential future earnings estimated in billions. Meanwhile, other Trump-related business ventures, such as the Truth Social platform, have also announced significant crypto partnerships, and the president’s sons recently launched a Bitcoin mining venture. These personal engagements occur simultaneously with Trump’s major policy decisions directly impacting the crypto market, including signing several executive orders. This overlap between the president’s private interests and public decisions has increased unease among some Republican lawmakers, including Hill, who believes it creates an unfavorable regulatory climate. Current legislative initiatives in Congress, such as the “STABLE Act” in the House and a similar Senate proposal, enjoy bipartisan support but face increased resistance due to Trump’s controversial crypto dealings. Democratic lawmakers like Elizabeth Warren have used these controversies to oppose proposed bills, accusing Trump-related projects, such as his USD1 stablecoin, of prioritizing personal interests over the public good.

President Donald Trump granted a presidential pardon to the founders of crypto exchange BitMEX—Arthur Hayes, Benjamin Delo, and Samuel Reed—on Friday. The three entrepreneurs had pleaded guilty in 2022 to violating the U.S. Bank Secrecy Act, notably due to the lack of an adequate anti-money laundering program on their platform. Each founder had also agreed to pay a $10 million fine to settle the case. Arthur Hayes publicly thanked the president on social media shortly after the announcement. BitMEX previously agreed to pay a $100 million fine in January to definitively settle violations committed between 2015 and 2020. Initially, U.S. authorities accused BitMEX of allowing American clients to transact on the platform without proper identity verification.

A senior Brazilian government official recently emphasized that establishing a strategic Bitcoin reserve would be crucial for the country’s prosperity and in the public interest. Pedro Giocondo Guerra, Chief of Staff to Vice President Geraldo Alckmin, compared Bitcoin to “digital gold,” highlighting its effectiveness in rapidly transferring wealth globally and securely preserving labor value. These comments follow a legislative proposal by Deputy Eros Biondini aiming to create a sovereign Bitcoin reserve representing up to 5% of Brazil’s international reserves. According to the bill, the Brazilian Central Bank would manage and oversee this reserve using advanced technologies such as blockchain and artificial intelligence to ensure security and transparency. The bill also suggests that the reserve support the launch of Brazil’s future digital currency, DREX. Objectives include diversifying the Treasury’s financial assets, protecting against currency fluctuations and geopolitical risks, promoting blockchain use in various economic sectors, and strengthening Brazil’s position in the global digital economy. It emphasizes transparent management with regular congressional reporting and proposes gradual deployment respecting fiscal constraints and financial stability.

Larry Fink, CEO of BlackRock, recently warned that the U.S. dollar could lose its status as the world’s reserve currency to digital assets like Bitcoin if the U.S. fails to control its debt and budget deficits. He highlighted that U.S. national debt is currently growing three times faster than GDP, creating a situation that could become unsustainable. This year, interest payments on U.S. debt will surpass $952 billion, exceeding even defense spending. While acknowledging cryptocurrencies’ potential, Fink cautioned they could threaten America’s economic dominance if investors see Bitcoin as a safer alternative to the dollar. He also emphasized the massive success of BlackRock’s Bitcoin ETF (IBIT), which quickly became one of the largest ETFs worldwide, managing over $50 billion in less than a year, primarily attracting retail investors.

Beyond Bitcoin, Fink stressed the importance of asset tokenization, an innovation capable of revolutionizing investing by making all types of assets (stocks, bonds, real estate) tradable on blockchains. This technology would significantly speed transactions, eliminate costly intermediaries, and free capital currently immobilized by administrative transaction delays. Fink views tokenization as a democratization of finance, expanding investment opportunities to smaller investors.

Technology firm Strategy recently announced the acquisition of nearly $2 billion worth of Bitcoin, increasing its total holdings to 528,185 Bitcoins, valued at approximately $35.6 billion. The recent purchase of 22,000 Bitcoins at an average price of $87,000 each is the third in consecutive weeks, affirming the firm’s aggressive investment strategy. To fund these acquisitions, Strategy raised $1.2 billion by selling common stock and $1.85 million through perpetual preferred shares (STRK), offering an 8% cumulative dividend. The company still has about $21 billion in remaining capacity to issue more preferred shares.

GameStop, a company known in the video game retail sector, has announced plans to issue approximately $1.3 billion in convertible bonds to finance Bitcoin acquisitions. This strategy directly mirrors the approach previously adopted by Strategy, a firm known for its massive cryptocurrency purchases funded similarly through debt issuance. GameStop clarified that funds raised through this bond issue will be used for general corporate purposes, primarily to buy Bitcoin to add to its treasury reserves. The company recently modified its investment policy specifically to allow the inclusion of Bitcoin in its financial assets. These convertible bonds, which will not pay dividends, will mature in April 2030, similar to recent bond issuances by Strategy. Bondholders will have the option to exchange these convertible securities, when appropriate, for a combination of GameStop shares and cash, under terms to be defined later by the company. Following this announcement, GameStop’s share price surged 11% during regular trading hours before slightly declining in after-hours trading. GameStop CEO Ryan Cohen recently hinted at this strategic shift, appearing publicly alongside Michael Saylor, co-founder of Strategy. This move occurs as GameStop already holds significant cash reserves, currently at $4.7 billion, markedly higher than the $921 million held a year prior.

Bitcoin dominance, currently close to 58.8%, has reached its highest level since early 2021, surprising investors who anticipated a significant revival in the altcoin market. Typically, such a period, known as an “alt season,” occurs when investors take profits from Bitcoin and reinvest them into alternative cryptocurrencies, which are often riskier but potentially more profitable.

However, despite generally favorable conditions for an alt season—such as Bitcoin’s relative stability, increased liquidity in markets, and growing institutional interest—this capital rotation has not materialized. Several factors explain this phenomenon: firstly, the ongoing Bitcoin accumulation strategy by companies, particularly Strategy, exerts constant buying pressure on Bitcoin. Additionally, the massive emergence of new cryptocurrencies likely dispersed capital flows, thereby limiting funds available to established altcoins. Last summer’s approval of an Ethereum ETF initially raised hopes of redistributing funds toward altcoins, but its real impact on the market was weaker than expected. Although financial products linked to Ethereum had a positive launch, this did not significantly boost the broader altcoin market.

The inflow of Bitcoin to major exchange platforms recently reached its lowest level in nearly two years, according to a recent analysis. CryptoQuant analyst Axel Adler Jr. indicated that selling pressure on Bitcoin has considerably diminished since its price exceeded $100,000 at the end of 2024. Specifically, average daily deposits on exchanges dropped by 64%, declining from 81,000 BTC in November to only 29,000 BTC per day currently. This significant reduction in incoming deposits may indicate an exhaustion of sellers, signaling favorable conditions for a new bullish market trend. Adler believes that investors have largely realized their gains following Bitcoin’s spectacular rise, leading to an equilibrium where buyers seem comfortable with current price levels. According to him, this calm period could represent a consolidation phase before a potential upward recovery in the coming months.

The presented information is as of April 1st, 2025, unless otherwise indicated and is provided for information purposes only. The information comes from sources that we believe are reliable, but not guaranteed. This statement does not provide financial, legal or tax advice. Rivemont Investments are not responsible for any errors or omissions in the information or for any loss or damage suffered.