By James Van Straten (All times ET unless indicated otherwise)
After Liberation Day, the financial landscape is shifting as clarity emerges around U.S. tariffs. Starting April 5, new tariffs will impact all U.S. trading partners, imposing a baseline import tariff of 10%. Higher, country-specific tariffs will follow on April 9 for approximately 60 nations.
Understanding the Tariff Dynamics
President Donald Trump initiated these tariffs, citing perceived trade imbalances and non-tariff barriers. The aim is to incentivize reshoring of production, generate revenue for tax cuts, and create a fairer competitive environment for U.S. manufacturers. Among the hardest-hit nations is China, facing a staggering new tariff of 34% on top of the existing levy, leading to a cumulative total of 54%. Other affected Asian economies also feel the impact, while the European Union contends with a 20% tariff.
The methodology behind the tariff rates has sparked curiosity. The administration referred to the rates as “reciprocal.” A user on X claims to have deciphered the formula: dividing a country’s trade deficit with the U.S. by its exports to the U.S. For instance, Vietnam’s exports to the U.S. total $136.6 billion against imports of just $13.1 billion, resulting in a trade deficit of $123.5 billion. This division yields a ratio of approximately 90%, which aligns with the reciprocal tariff rate the U.S. has implemented.
Market Reactions
As a result of these developments, global stock markets are feeling the strain. The Nikkei 225 dropped by 2.8% after hitting a low of 4.6%, while the FTSE 100 declined by over 1%. Nasdaq futures are also down more than 3.5%, with Vietnam experiencing a significant 5.5% drop—its worst single-day performance in over four years.
The U.S. dollar has weakened, with the yen rising to 147 against the dollar and the pound reaching 1.31. The dollar index (DXY) has decreased to 102.5. Despite this turbulence, Bitcoin (BTC) remains resilient above $83,000, although it still sits below its critical 200-day moving average of $86,400—a level it must regain for a bullish outlook.
In the macroeconomic realm, the U.S. 10-year Treasury yield has dipped just above 4%, marking the lowest level since October, a development seen as favorable for the administration in terms of lowering interest rates.
What to Watch
Crypto Events:
– **April 5**: Celebrated as the purported birthday of Satoshi Nakamoto.
– **April 9, 10:00 a.m.**: U.S. House Financial Services Committee hearing on updating U.S. securities laws to include digital assets.
Macro Economic Indicators:
– **April 3, 8:30 a.m.**: Release of U.S. unemployment insurance data for the week ending March 29, with initial jobless claims estimated at 225K.
– **April 3, 10:00 a.m.**: Institute for Supply Management (ISM) releases U.S. March economic activity data.
Earnings Announcements:
– No earnings reports scheduled.
Token Events
Governance Discussions:
– Yearn DAO is considering a revised proposal to endorse and fund “Bearn,” a new sub-DAO aimed at developing DeFi products, including a yield-backed stablecoin. The proposal seeks $200,000 for audit costs and $1 million in locked liquidity.
– Lido DAO is discussing the re-endorsement of wstETH on Starknet as the canonical bridge endpoint following a successful migration from the legacy token.
Upcoming Community Engagements:
– **April 3, 9 a.m.**: SafePal, Wallet Connect, and Trader will host a monthly community livestream.
– **April 3, 12 p.m.**: Seamless Protocol, Morpho Labs, and Gauntlet will conduct an Ask Me Anything (AMA) session.
Unlock Events:
– **April 3**: Wormhole (W) will unlock 47.64% of its circulating supply, valued at $118.42 million.
– **April 5**: Ethena (ENA) will unlock 3.25% of its circulating supply, worth $55.30 million.
Conferences
Upcoming Events:
– **May 14-16**: CoinDesk’s Consensus in Toronto. Use code DAYBOOK for a 15% discount on passes.
– **April 6-9**: Hong Kong Web3 Festival.
– **April 8-10**: Paris Blockchain Week.
Token Talk
By Shaurya Malwa
Treasure DAO, a decentralized gaming ecosystem, is restructuring to extend its financial runway to February 2026. Chief contributor John Patten has resumed a leadership role and proposed a plan to streamline operations, reduce costs, and focus on four key products: marketplace, Bridgeworld, Smolworld, and AI agent.
As part of cost-saving measures, 15 contributors have been laid off, with plans to withdraw $785,000 from Flowdesk to boost the DAO’s treasury, which currently holds $2.4 million and 22.3 million MAGIC tokens valued at $2.3 million. Patten cautioned that without these changes, the DAO could face unsustainability between December 2025 and February 2026 due to its current burn rate of $8.3 million annually.
Market Movements
– **Bitcoin (BTC)**: Down 2.17% at $83,799.17 (24hrs: -1.62%).
– **Ethereum (ETH)**: Down 1.93% at $1,844.66 (24hrs: -3.15%).
– **CoinDesk 20 Index**: Down 0.56% at 2,559.88 (24hrs: -0.07%).
Technical Analysis
Solana’s SOL token has fallen below the $125 mark, which previously served as a demand zone last year. This breakdown signifies a potential continuation of the downtrend, with the next support levels at $100 and then $78, the January 2024 low.
Bitcoin Statistics
– **BTC Dominance**: 62.86% (0.13% change).
– **Hashrate (7-day moving average)**: 835 EH/s.
– **Total Fees**: 4.43 BTC / $377,634.
In Summary
The financial landscape is experiencing significant shifts due to U.S. tariffs, impacting both traditional and cryptocurrency markets. As we navigate this volatile terrain, staying informed on macroeconomic indicators and crypto events will be crucial for investors and enthusiasts alike.
