Dear Subscriber,

By Marija Matic

President Trump's trade offensive has sparked market anxiety.

That’s because the ripple effects of tariffs can cast a wide net.

Higher tariffs force companies to raise consumer prices, fueling inflation. This traditionally triggers Fed rate hikes and quantitative tightening.

And if you’ve been following our cycles expert Juan Villaverde, you know that’s the opposite of what cryptocurrencies across the board need to rally.

But here’s a take you may not have heard or seen among the FUD-mongering headlines:

I believe this market madness is a short-term hurdle and not a long-term diversion.

Let me explain …

Here’s What Happened

The White House recently signed sweeping tariffs — 25% on Canadian and Mexican imports and 10% on Chinese goods, fulfilling President Trump’s campaign promise.

And while domestic production might benefit eventually, the immediate impact has been brutal for all markets, including crypto.

The broad crypto market saw a flash crash that erased $400 billion in market value.  

That’s the largest wipeout since COVID-19. 

And while official liquidations hit $2 billion in 24 hours, Ben Zhou, CEO of centralized exchange Bybit, suggests the true figure is likely between $8 billion - $10 billion.

Fortunately, the markets have found temporary relief for now.

After diplomatic calls, the U.S. and Mexico agreed to a one-month tariff pause in exchange for border security commitments, including 10,000 National Guard troops deployment.

Immediately, markets rallied on this news.

That is key, and brings me to …

3 Hidden Gems You May Have Missed 

Even though uncertainty looms, market history suggests sharp recoveries are likely when tariffs ease. 

That is the first bullish gem. As affected countries make concessions, I expect we’ll see additional potential rallies similar to today's Mexico-driven bounce.

Polymarket odds suggest this pattern could repeat, with high probability of Canadian (61%) and Mexican (55%) tariff removal by May.

Source: Polymarket. Click here to see full-sized image.

The second is the U.S.’s renewed commitment to crypto. At 2:30 p.m. Eastern tomorrow,  David Sacks — Trump's Crypto Czar — will speak publicly about the U.S.’s strategy to become a leader in “the digital asset ecosystem.”

That could accelerate this recovery trend. His outline of U.S. digital asset leadership plans comes at a crucial moment when institutional confidence could help stabilize the crypto market.

The third and final gem is, surprisingly, Bitcoin (BTC, “A”)

The forced liquidation over the past 24 hours of previous market bottoms, like the COVID crash in 2020 and the collapse of FTX in 2022.

But here's the stunning reality: Despite suffering crypto's largest-ever liquidation event by dollar value, Bitcoin barely flinched.

Yes, it corrected down to the $92,000 range. But then, it almost immediately bounced back. As I write, it trades near $98,000. 

BTC’s price action over the past 24 hours. Source: Coingecko.com. Click here to see full-sized image.

This is a good sign for two key reasons:

1. Bitcoin stood as an immovable fortress in a time of broad market weakness.
    
2. When leverage gets flushed out this dramatically, it often marks the end of a downward spiral.

Together, these tell me that we can expect this event to establish a new cycle floor.

That said, don't expect an immediate moonshot.

These forced capitulation events demand time to heal. Typically, that means several weeks of choppy, volatile price action.

Like I said, it will still be a “short-term struggle.”

Don’t Count Out the Altcoins Just Yet

The divergence between Bitcoin's stability and altcoin carnage suggests a shift in market dynamics.

While overleveraged altcoin positions got decimated, Bitcoin's growing institutional backing and ETF-driven demand provided a sturdy floor.

This is the latest confirmation of BTC’s evolution into crypto's true safe haven.

But that doesn’t mean altcoins are down for the count.

Despite today's bloodbath, many of the altcoins will likely face transformative catalysts in 2025.

Already approved Ethereum (ETH, “A-”) ETFs are hopeful they’ll be able to add staking features to their offerings. That could revolutionize institutional yield generation.

Institutions are also eyeing lucrative yields on DeFi platforms — which are seeing record-breaking trading volumes — due to their innovative and smart design.

Furthermore, traditional banks are quietly building their crypto infrastructure for trading and custody services. That’s because regulators appear increasingly receptive to altcoin ETF approvals. 

Finally, the proposed U.S. Crypto Strategic Reserve signals unprecedented government engagement with digital assets. That speaks to a financial future with more exposure and adoption for cryptocurrencies.

These seismic shifts aren't just possible. They're likely inevitable in 2025. 

The markets will stabilize and ingest these trade war headlines. And when they do, these key crypto catalysts could fuel an expansion that dwarfs the recent correction.

The question isn't if these developments will impact prices but when and how dramatically.

Navigate the Storm

Flash crashes are tough to stomach. Even for experienced crypto investors and users like myself.

But here’s the thing to remember: Crypto rewards those with nerves of steel.

Panic selling turns paper losses into real ones, while patience historically leads to recoveries that eclipse previous highs.

This is where patience and a solid strategy for how to handle market volatility can really improve your crypto journey.

And doing so successfully is what can separate survivors from casualties in the crypto market.

Given these developments, I encourage you to approach this situation with a two-pronged plan.

First, brace for near-term turbulence. The market is still digesting the latest news. That means volatility will be the flavor du jour for a bit. Generally, the smart money waits for the dust to settle while weak hands continue to shake out. You’ll want to make sure your portfolio is ready to weather the storm.

Then, prepare for strong rallies as trade tensions ease. That could mean just letting your investments ride or using strategies like dollar-cost averaging to add exposure on the way up, depending on your risk tolerance and current exposure.

Once you’ve done your prep work, put your pencils down.

This simplest move — to step away from those blood-red charts and let the storm pass — may be the most prudent option. And it is likely also the hardest.

But it will save your sanity in the short term.  

And if you need help with your mental fortifications, just remember: When recoveries come — as they always have — they tend to arrive with shocking momentum.

Keep holding on. We’ll weather this one together.

Best,

Marija Matić