Dear reader,
Tariff Fallout and Global Reaction
Markets are grappling with heightened volatility following President Trump’s sweeping tariffs on imports, which have sparked fears of a global recession and inflationary pressures. China has retaliated with counter-tariffs, further intensifying the economic uncertainty. Global equities have plunged, with the S&P 500 down 4.3% and the Nasdaq dropping 5.5%. Investors are flocking to safe-haven assets like gold, which hit $3,160 per ounce.
Crypto Market Impact
The crypto market has not been spared from this turbulence:
- Bitcoin (BTC): After flirting with $88,500 earlier this week, Bitcoin plummeted to $82,000 within hours of the tariff announcement. BTC remains volatile but continues to attract institutional interest as a hedge against inflation and dollar weakness. Despite a 12% drop in Q1, Bitcoin’s fixed supply and growing adoption position it as a long-term store of value akin to gold.
- Altcoin Activity: Crypto whales are actively accumulating altcoins like Immutable (IMX) and Dogecoin (DOGE). IMX saw an 800% increase in large holder net flow over the past week, while whales acquired $40 million worth of DOGE, signaling confidence in these assets.
Ethereum Update
Ethereum reclaimed key levels above $1,950 earlier this week, supported by increased trading volume. Analysts suggest this could set the stage for bullish momentum if Bitcoin stabilizes. However, ETH faces resistance at $1,840 and bearish sentiment persists in the short term.
We Are Building — Spirit Blockchain Capital’s Vision
Amid market uncertainty, Spirit Blockchain Capital remains focused on building the infrastructure for the future of finance. A recent Coinbase x EY-Parthenon survey revealed that institutional interest in digital assets is not only growing but accelerating:
- 83% of institutional investors plan to increase their crypto exposure in 2025.
- 59% intend to allocate over 5% of their portfolios to digital assets, signaling mainstream acceptance.
- Participation in DeFi is expected to triple by 2027, with staking, lending, and cross-border settlements leading use cases.
These findings underscore what we at Spirit Blockchain Capital have long believed: digital assets are no longer a fringe experiment—they are becoming a core part of institutional portfolios.
Together with innovators like Vaulta Foundation (formerly EOS), Ceffu, exSat Network, and Blockchain Insurance Inc., we are building the infrastructure needed to bridge traditional finance (TradFi) with decentralized finance (DeFi). By focusing on compliant, tokenized solutions and real-world utility, we are helping shape a financial ecosystem that is resilient even in volatile times.
The global financial landscape is evolving rapidly:
- From geographic limits to global access
- From costly pipelines to an internet of value
- From inaccessible assets to programmable markets
At Spirit Blockchain Capital, we are proud to be part of this transformation—laying the foundation for a more inclusive and interoperable financial future. The tech is here, the market is ready, and we’re just getting started.
This Week’s Headlines
New Grayscale launches, filing reflects crypto product innovation boom: The company’s expanded lineup introduces new ETF products, as more and more issuers get into crypto funds.
Gen Z’s Bitcoin Bet and the Largest Wealth Transfer in History: As Gen Z prepares to inherit $84 trillion from retiring boomers, Bitcoin Backstage explores whether this historic wealth transfer could spark a generational Bitcoin revolution.
China Announces 34% Tariff on All U.S. Goods. Bitcoin Falls Back to $83K: Risk sentiment worsened during the European hours Friday after China announced retaliatory tariffs on all goods, responding to Trump’s Wednesday decision to boost the overall levy on Chinese goods to 54%.
WisdomTree Connect expands to Base, Arbitrum, Avalanche and Optimism: The platform also rolled out 13 tokenized funds for institutions on the Connect platform.
Bitcoin Startups Raised Nearly $1.2 Billion: Bitcoin-native startups have raised nearly $1.2 billion between 2021 and 2024, according to new research from Trammell Venture Partners. Early-stage activity continues to grow despite broader market declines.
US House Committee Votes to Move Forward on Anti-CBDC Bill: Minnesota Republicans’ Anti-CBDC Act passes key committee, aiming to curb federal surveillance through digital currencies.
Not a Meme! DePIN Can Take Crypto Mainstream: Using blockchain technology to support real-world infrastructure, DePIN creates tangible value and generates real revenue, says Fluence Network’s Tom Trowbridge.
Ethereum developers aim for May 7 mainnet deployment of Pectra upgrade:The mainnet deployment includes 11 modifications under Ethereum Improvement Proposals.
Notable Deals and Fundraising
Investment Firm Republic to Acquire Crypto Trader INX Digital for Up to $60M: The transaction is expected to close within eight months, subject to closing conditions.
Paris-based Flowdesk scoops $102M to close the crypto gap, sees support from BlackRock: Flowdesk, a full-service digital asset trading and technology firm, has secured $102M — $91.8 million in equity and $10.2 million in debt – in new financing. The round combines equity funding from HV Capital and existing investors Eurazeo, Cathay Innovation, and ISAI, plus debt financing from BlackRock-managed funds and accounts. This raises Flowdesk’s total funding to $122M.
Remittix, a new blockchain remittance platform, completed a presale raising over $14.3M in record time, attracting significant interest from Solana and Ripple holders.
GameFi platform Rollblock raised $1.3M in March, pushing total funding past $11.1M across ten rounds. Its native token RBLK surged by 620%, highlighting strong community engagement.
SandboxAQ Raises $150M:AI startup SandboxAQ added Nvidia and Google as backers, increasing its Series E round to $450M and valuing the company at $5.75B. The funds will support quantum AI research and global expansion.
Venture capital spending topped $4.5B in Q1: PitchBook’s Robert Le said crypto projects focused on institutional use cases are the focus.
Human Rights Foundation Donates 1 Billion Satoshis To Fund Bitcoin Development: The Human Rights Foundation has granted 1 billion satoshis to over 20 global projects advancing bitcoin development, privacy, and financial freedom. From Africa to Asia, these initiatives empower individuals under authoritarian regimes.
Strategy Buys $1.92 Billion Worth of Additional Bitcoin: Strategy continues aggressively stacking sats, acquiring over $1.9 billion worth of additional bitcoin to boost its corporate treasury. The purchase brings the company’s total BTC holdings to over 528,000.
Cango Inc. to Sell $350 Million Auto Business to Invest in Bitcoin: Cango Inc., a Chinese public company, has announced plans to sell its $350 million automotive business to invest fully in Bitcoin, reflecting a growing bullish sentiment in Asia towards the cryptocurrency.
Uniswap DAO Advances $111 Million Program to Boost Governance Participation:The proposal would delegate 18 million UNI tokens from Uniswap’s treasury to underrepresented delegates to ensure their continued participation in governance.
Have a great week!
