Crypto Weekly Market Wrap 7th April: Global Tariffs Trigger Market Turmoil and Crypto Volatility

Market sentiment shifted sharply this week as risk appetite weakened across global sectors. President Trump’s new tariffs triggered sharp declines, with tech and auto stocks leading the drop. The 10% baseline levy and reciprocal tariffs hit up to 49%, sparking investor concern. Consequently, the Crypto Fear and Greed Index fell to 25, reflecting extreme caution.

Crypto saw heightened activity as major headlines drove sharp movements across the market. Bybit made a notable comeback, while new ETF launches and IPO announcements signaled fast-paced developments. The sector continues to respond to global shifts, setting the tone for the crypto weekly market wrap.

Circle Prepares for Public Debut with JPMorgan and Citi Backing

Circle filed its initial public offering under the JOBS Act in January last year. JPMorgan Chase and Citigroup are listed as lead underwriters in the SEC filing. The company targets a valuation between $4 billion and $5 billion.

BREAKING:

Circle, issuer of $USDC, is gearing up to go public.

JPMorgan & Citi will lead the IPO, with a filing expected by end of April.

This could be the biggest crypto-to-Wall-Street moment of the year. pic.twitter.com/rpioRRIbUz

— Merlijn The Trader (@MerlijnTrader) April 1, 2025

The IPO comes after a failed $9 billion SPAC merger attempt in 2022. That deal collapsed due to regulatory hurdles and market conditions. Circle has since made several strategic moves to align with traditional financial systems.

Bybit Sees Strong March Inflows After February Security Breach

In February, Bybit suffered a major attack that led to the theft of Ethereum worth $1.5 billion. The particular attack was attributed to the North Korean cybercrime unit, the Lazarus Group. Hackers also employed hidden transactions and took advantage of a weakness in Bybit’s wallet infrastructure.

However, Bybit was able to come back strongly in March with $3.61 billion worth of inflows. This exceeded Binance’s $3.545 billion for the same month. This is attributed to increased users’ confidence as well as the stability of the platform.

In addition, there are additional features such as Retail Price Improvement as well as options with high leverage. Thus, events such as the “Legends of Trade” contributed to increasing the active use of the platform. The changes enabled it to regain its status among the leading global exchange platforms.

Hut 8 and Trump Brothers Rebrand Mining Operations as ‘American Bitcoin

In order to establish American Bitcoin Corp, Hut 8 entered into a partnership with Eric and Donald Trump Jr. The company changed its name from American Data Centers after acquiring Hut 8’s ASIC mining facilities. Hut 8 retains an 80% stake.

The newly formed venture aims to become the most efficient Bitcoin miner in the world. It intends to go public and will hodl mined bitcoins as its assets. This aligns with the long-term adoption models that best suit BTC as a store of value.

American Bitcoin aims for over 50 exahashes per second and has a fleet efficiency of less than 15 joules per terahash. Hut 8 will oversee infrastructure to make sure it has steady revenues from long-term service delivery.

Bitwise Unveils Three Option-Based ETFs Tied to Crypto Stocks

Bitwise recently introduced three new ETFs for trading based on covered calls on crypto equity indexes. These ETFs—IMST, ICOI, and IMRA—focus on MicroStrategy, Coinbase, and Marathon Digital. These types of ETFs are designed to produce monthly income.

Each ETF employs synthetic covered call strategies. This results in limited upside but relatively guaranteed income from option premiums. Bitwise has zero trading fees on two of the three funds till March 2027.

These ETFs are managed dynamically depending on the current market conditions. They react to news flows, sentiment changes, and the movements of capital. Many of these funds are designed to allow their users to make profits from the volatility of the crypto prices.

Sony Singapore Accepts USDC Payments Through Crypto.com

Sony Electronics Singapore has embraced USDC as a means of payment through Crypto.com. This is the first time that Sony is extending the use of the local crypto payment system. At the moment, the feature is available only for the Sony Store Online, and only USDC is currently accepted. Sony intends to diversify into other cryptocurrencies in the near future, aligning with its blockchain strategy.

Sony Singapore recently launched Soneium, its Ethereum Layer 2 network. The rollout is seen as a step towards the increased application of blockchain in its operations. The payment support introduces real-life applications of stablecoins for adoption by the retail market.

Japan’s Metaplanet Adds 696 BTC to Growing Bitcoin Holdings

Japanese public firm Metaplanet has increased its Bitcoin holdings by purchasing 696 bitcoins. The total purchase value was around $67.85 million, with the average purchase price of $97,490 per Bitcoin.

Metaplanet now holds 4,046 BTC, making its crypto investment worth over $350 million. They have been augmenting their reserves since they joined the market. Bitcoin is considered an asset-strategic to the company since it employs reserves as a long-term store of value. This comes amid a growing trend of other listed firms looking to delve into the digital asset market.

Kyrgyzstan and CZ Collaborate on National Blockchain Ecosystem

The president of Kyrgyzstan announced a partnership with Changpeng Zhao of Binance. It is a project to establish a national crypto and blockchain infrastructure. The National Investment Agency entered into a Memorandum of Understanding with CZ’s team, with emphasis given to areas such as infrastructure, technical support, and education. The initiative seeks to turn Kyrgyzstan into a country capable of offering blockchain solutions.

A Memorandum of Understanding has been signed between the National Investment Agency under the President of the Kyrgyz Republic
and Changpeng Zhao (CZ)
 
In accordance with the Memorandum, the parties intend to cooperate in the development of the cryptocurrency and blockchain…

— Sadyr Zhaparov (@sadyrzhaparovkg) April 3, 2025

The agreement also outlines the plans for the regulation support and the training of developers reflecting the growing government interest in blockchain across Central Asia. Kyrgyzstan aims at growing talent and developing a healthy environment that supports the digital industry.

Russia Converts Seized Bitcoins Into Treasury Revenue

Russia implemented new approaches to the monetization of seized BTC. This comes as a result of a high-profile bribery case of over 1000 BTC whereby these assets were transferred to the Ministry of Finance.

The legal standpoint was confirmed by Dmitry Aristov, the head of the FSSP. FSSP is also cooperating with other bodies in crypto assets disposal. The FSSP also seeks more transparency in the rules for handling seized crypto assets.

Lawmakers are urged to provide more definitions of the legal reality in Russia with regard to crypto. The use of the legislative framework would help to make it more systematic. Russia now joins other countries that are discussing the possibility of implementing policies on the direct confiscation of crypto assets.

Shibarium Surpasses 1 Billion Transactions Within 18 Months

The Shiba Inu Layer 2 blockchain, known as Shibarium, reached 1 billion transactions within a period of 18 months. The server has reached the capacity of 10 million blocks without disruption. Over 4 million transactions happen daily, and almost 194 unique wallets have been created. Shibarium ranks among the burgeoning Layer 2 chains.

🚀 Shibarium Hits 1 Billion TXs! 🎉🔥

18 months in, our L2 proves the power of decentralization, innovation, and the unstoppable ShibArmy! 🚀🔥https://t.co/Xt6iRCERJe pic.twitter.com/w6Su28ADVH

— Shibarium Network (@ShibariumNet) April 1, 2025

For each transaction that occurs, a certain amount of SHIB tokens are burned, thus causing deflation. The network is an integral part of Shiba Inu’s ecosystem. Shibarium developers intend to add long-term values to the application by enhancing the features offered to its users.

Justin Sun Accuses First Digital Trust of Insolvency

First Digital Trust (FDT) was accused of being insolvent by Justin Sun, making the FDUSD depeg to $0.87. However, FDT dismissed the allegations, calling them a smear campaign. Sun urged users to withdraw all their funds immediately and also demanded regulation of Hong Kong. The claims also provoked concerns about the stablecoin’s backing and funds management.

What’s the similarity & difference between the user fund misappropriation (or rug pull) by First Digital Trust (FDT) and FTX?

That’s a wild dejavu. In the case of FTX, Sam Bankman-Fried (SBF) approached me for a potential rescue plan during its final weeks, which I realized as…

— H.E. Justin Sun 🍌 (@justinsuntron) April 5, 2025

Fidelity Opens Crypto Access Through Retirement Plans

Fidelity now allows retirement account access to BTC, ETH, and LTC. Clients can use individual retirement accounts (IRAs) to hold crypto. The service is zero-fee except for a 1% spread on orders. The service is available to users in supported regions. Fidelity handles asset custody internally. Users can link existing brokerage IRAs to the crypto platform.

Three plan types are offered: Roth IRA, Traditional IRA, and Rollover IRA. Each option gives clients flexibility on how they allocate digital assets. Fidelity remains focused on well-established cryptocurrencies.

BlackRock Gets FCA Approval to Operate as Crypto Asset Firm

BlackRock received regulatory approval from the UK’s Financial Conduct Authority. The approval enables crypto-related activity through its iShares Digital Assets AG unit. BlackRock may now offer ETPs to institutional clients in the UK. The FCA crypto register began in 2020 to enforce AML compliance. So far, only 51 firms have received approval. Other members include Coinbase, Gemini, and Kraken.

BlackRock’s approval permits ETP transaction facilitation between issuers and participants. UK retail investors remain excluded from crypto ETPs, but institutional use continues to expand under tight regulatory oversight.

STABLE Act Advances Despite Debate Over Trump-Linked Stablecoin

The U.S. House Financial Services Committee approved the STABLE Act by a 32-17 vote. The bill requires stablecoin issuers to meet capital and AML standards. It mandates disclosures about backing assets.

The committee also debated a stablecoin tied to the Trump family. Some lawmakers raised conflict of interest concerns. The USD1 token’s link to World Liberty Financial sparked political debate.

Amendments sought to bar officials from launching stablecoins. Lawmakers aim to prevent future bailouts using taxpayer funds. Despite the disputes, the bill advances to the full House for a vote.

Grayscale Launches Bitcoin-Linked Income ETFs BTCC and BPI

Grayscale introduced two ETFs focused on Bitcoin volatility income. BTCC uses near-the-money call options for steady returns. BPI allows more upside while maintaining monthly payouts. Both ETFs use ETP options for exposure. They rely on active management to adjust strategies as markets shift. The monthly income is distributed to shareholders.

Grayscale announced the launch of the Grayscale Bitcoin Covered Call ETF (Ticker: BTCC) and the Grayscale Bitcoin Premium Income ETF (Ticker: BPI).https://t.co/o6pf9HhRFA

— Wu Blockchain (@WuBlockchain) April 2, 2025

The ETFs reflect rising demand for structured crypto investments. Investors use these tools to reduce volatility and capture consistent returns. Grayscale leverages its experience with GBTC to support the new offerings.

Ripple’s RLUSD Stablecoin Nears $250 Million Market Cap

Ripple’s stablecoin RLUSD reached a market cap of $240 million. The token launched in December 2024. It has already generated $10 billion in trading volume. Ripple integrated RLUSD into Ripple Payments. It enables real-time cross-border transactions. Clients include iSend and BKK Forex.

Moreover, exchanges like Kraken have listed RLUSD for retail access. Ripple also sees use cases in DeFi and aid distribution. The token’s utility spans multiple sectors beyond remittances.

FTX Removes 392,000 Claims Worth $2.5B Amid Verification Deadline

FTX was disqualified with 392,000 claims totaling up to $2.5 billion. The deadline to verify identities passed on March 3. Claims without proper KYC verification no longer qualify for repayment. This reduction could benefit verified users with better recovery chances.

🔥 @FTX_Official has denied approximately 400,000 customer claims due to KYC noncompliance

Almost 400,000 #FTX users could lose $2.5B in crypto repayments if they fail to complete KYC verification by the extended deadline of June 1. Court documents reveal that claims under… pic.twitter.com/1ZTZsLjq2t

— PHOENIX – Crypto News & Analytics (@pnxgrp) April 7, 2025

According to court records, disqualified claims included $655 million under $50,000. Larger claims made up $1.9 billion. FTX aims to begin repayments on May 30 using values from November 2022. So far, $11.4 billion has been recovered. The case remains complex, with the court handling massive fake or inflated submissions, showing the scale of ongoing bankruptcy issues.

CoinList Reopens U.S. Access With Exclusive Token Sale

CoinList announced that it is resuming U.S. operations after a five-year break that began in 2019. The platform confirmed a new token sale this month for accredited U.S. participants. The last U.S. token sale on CoinList was Kadena’s, held before regulatory pressure escalated.

The shift follows recent policies easing crypto restrictions, which contrast with earlier enforcement under the Biden administration. CoinList President Scott Keto called the return a turning point for the platform. The company now signals readiness to navigate the evolving U.S. crypto landscape. Consequently, CoinList aims to reengage American users under updated compliance frameworks.

Crypto Market Overview

In the weekly outflow report by Coinshares, exchange-traded products (ETPs) witnessed an outflow of $240 million. This was due to the increased tension on the trade tariffs by the United States and over the stability of the global economy. Bitcoin-related ETPs led the charge with a net outflow of $207 million, thus taking their total for the month to negative territory.

📉 Digital asset investment products saw outflows totalling $240m last week, following U.S. trade tariff news. The flows were primarily from @bitcoin, seeing US$207m in outflows, leaving total inflows ytd at US$1.3bn.

Flows in altcoins were very mixed, with @Ethereum seeing… pic.twitter.com/tSlDadC9St

— CoinShares (@CoinSharesCo) April 7, 2025

There were $38 million in outflows for Ethereum products despite receiving $279 million in flows for 2025. Altcoins like Solana and Sui experienced outflows of $1.8 million and $4.7 million, respectively. However, Toncoin showed $1.1 in net inflows, which also pointed to focused interest across the assets.

At a regional level, the highest number of outflows was noted in the United States, being $210 million, whereas Germany recorded $17.7 million. Canadian funds saw inflows of $4.8 million as buyers entered on weakness. The assets under management stood at $132.6 billion, slightly higher than it was in the previous week by 0.8%.

For the second week, investors pumped $8 million into blockchain equities, indicating they are buyers in the market. The largest issuer outflow has been through Grayscale products, where investors sold $95 million, taking this years’ net assets to $1.4 billion. BlackRock’s iShares held $3.2 billion in inflows despite $56 million in outflows in the week. ProShares and ARK Invest had a bullish outlook for the year with $398 million and $146 million inflows, respectively.

Bitcoin Price Performance

The leading asset, Bitcoin, closed the week below the $80K mark, indicating increased volatility in the market. After failing to break the resistance at the $87K mark, the price dropped to the 82K levels, where it has been consolidating since then.

Technical indicators suggest that BTC could be heading for further depreciation if the current trend holds. The Relative Strength Index (RSI) has dropped to 40 levels approaching the oversold levels. In addition, the Moving Average Convergence Divergence has dropped deeply in the negative region, which cements the bearish sentiment as the selling pressures continue.