Weekly Wire | Investors Seizing Opportunity During Volatility

In this week’s global financial market update, volatility remains a key theme following the announcement of widespread U.S tariffs on nearly all trading partners, set to take effect April 2, 2025. Since the announcement, the S&P 500 saw a significant decline of over $5 trillion in value, while the Dow dropped 2,200 points on April 4 — the largest single-day decline since the 2020 COVID-19 downturn. China introduced 34% tariffs on U.S. goods, heightening economic uncertainty. This led many investors to shift towards safe-haven assets, such as government bonds, amid concerns over global trade stability. 

This week’s key focus includes the ongoing discussions between President Trump and Federal Reserve Chairman Jerome Powell over interest rate policies. Since last Monday, global stocks fell, losing over $20 trillion in value from their mid-February peak, with credit markets tightening as borrowers encounter challenges in raising cash. Major companies like Apple and Nvidia experienced a combined $470 billion drop in market cap this week. Looking ahead, volatility is expected to continue with U.S. consumer credit and inflation data expected this week, which could influence Federal Reserve rate cut expectations. However, recession concerns remain prominent. According to the CME FedWatch tool, markets are currently anticipating between four and five rate cuts from the Fed in 2025. 

In the cryptocurrency space this week, Bitcoin dipped below $78,000 on April 7, down from a high near $84,000 earlier in the week. Just two months ago, Bitcoin was trading above $90,000, highlighting the volatility of the market. Despite a 15% year-to-date decline, Bitcoin’s remains resilient when compared to equities, and it is worth noting the actions of institutional investors amid the market turmoil. Cathie Wood's ARK purchase of Coinbase shares, Standard Chartered claiming BTC as a hedge against tariff risks, and Michael Saylor’s Strategy buying Bitcoin dip with $1.9B purchase are a few prominent examples of sophisticated investors suggesting they see current valuations as having become more attractive given the risks on the horizon. 

Financial Advice Disclaimer: Nothing in this article constitutes professional or financial advice, performance data or any recommendation that any specific cryptocurrency, portfolio, index, investment product, transaction or investment strategy is suitable for any specific person. You assume the sole responsibility of evaluating the merits and risks associated with all financial decisions and should seek the advice of a registered financial advisor when in doubt.