Trade Tensions Highlight Bitcoin's Resilience

Dear Subscriber,

A new wave of trade hostilities is rippling through global markets.

We saw the start of tariff-driven turbulence in the markets last week as President Trump announced a 25% import tax on Mexican and Canadian goods, as well as a 10% tariff on Chinese imports.

Negotiations with both Canada and Mexico delaying the initiative by one month saw the markets mellow out.

But now, China is striking back and shaking the markets once again.

It’s levied 15% duties on U.S. coal and liquefied natural gas products and a 10% tariff on U.S. crude oil, agricultural machinery and large engine cars.

And so, the spiral continues.

President Trump plans to announce reciprocal tariffs this week, including an aggressive 25% on all steel and aluminum imports — a move that may particularly impact Canada, Brazil, China and Mexico as top suppliers.

There is also talk of additional potential measures against the EU, Japan and BRICS nations.

But don’t give yourself whiplash trying to keep up this trade war. Instead, look at how the smart money chooses to respond.

And right now, that capital is moving in an interesting direction …

Smart Money Flows to Proven Cryptocurrencies

Bitcoin (BTC, “A”) sits just 10% below its all-time high. And its market dominance has surged to a four-year high this February.

This reflects a powerful shift toward the market's most established cryptocurrency.

Which makes sense. With the markets still trying to catch up with the tariff war’s latest volley, smart money knows it’s best to hole up in a strong, resilient asset.

And BTC’s recent strength puts it solidly in that category. That is why institutional investors increasingly view it as a hedge against global uncertainty.

Especially when compared to new coins.

Analyst AB Kuai Dong warns of brutal post-listing drops for new tokens. He predicts that $2 billion launches could crash to $300 million, while $700 million offerings might sink below $100 million this summer.

These dramatic plunges aren't surprising. They’re expected when inflated pre-sale valuations get reality checks.

Is it really any wonder institutional and sophisticated retail investors are choosing to stick with established projects?

Strategy (MSRT) — formerly MicroStrategy — was quick on the uptake.

It boldly added 7,633 Bitcoin, or roughly $742 million, near peak prices to build its mammoth 478,740 BTC war chest.

And it’s not alone.

The University of Austin has made history by committing $5 million of its endowment to Bitcoin for the next five years. That makes it the first U.S. university to take such a bold step.

According to the foundation’s chief investment officer, Chun Lai, the university’s decision is based on Bitcoin’s reputation as “digital gold.”

But it’s not all about Bitcoin. Institutional investors are showing a broader crypto appetite, though they are still sticking to blue chips.

Just look at last week’s ETF inflows: Ethereum (ETH, “A-”) ETFs surprisingly outpaced Bitcoin last week to pull in $420 million vs. Bitcoin's $204 million.

This suggests interest in ETH’s structural role within crypto markets, even as its price trends lag.

Stablecoins Offer Stability … and Market Insight

Thanks to their general insulation from market volatility, stablecoins — pegged to a fiat currency — are another crypto asset investors are turning to.

And the timing couldn’t be better. Last week saw a massive $5.1 billion surge in fresh stablecoins across networks.

Ethereum and Tron, for example, each had over $2 billion in USD Coin (USDC) and Tether (USDT) mints. Solana (SOL, “B”), meanwhile, added roughly $600 million in stablecoins.

But this isn’t just a reaction to the current cry for stability.

This is a mountain of "dry powder" just waiting to be deployed.

It suggests institutional heavyweights aren't just watching — they're preparing for strategic entries.

Why? Because experienced players know that key events in markets like this can make for impressive entry opportunities.

Follow the Smart Money

Right now, savvy investors and institutions are taking two potential steps:

If you want to avoid some of the more stomach-churning market turns, the first step may be worth considering.

If you’re looking to get into crypto or are not yet fully leveraged, the second step could help you be ready for what could be a powerful move once these temporary trade headwinds subside.

There are a few macro forces set to impact the markets in the near future, such as Federal Reserve Chair Jerome Powell's testimony tomorrow and the anticipated release of the latest CPI data on Wednesday.

Whether or not you choose to follow the smart money, I urge you to keep your wits about you this week.

We’ll likely see more volatility, so hold on tight.

Best,

Marija Matić