In what can only be described as a diplomatic ballet performed by two elephants in a tutu, the crypto markets managed to sidestep the tidal wave of chaos unleashed by US President Donald Trump’s latest verbal jab at Federal Reserve Chair Jerome Powell. Meanwhile, stocks took a nosedive worthy of a slightly panicked squirrel, and the US dollar decided it was time for a bit of a nap on the weakening bench.
On April 21, the good old US stock markets ended the day feeling a smidge blue—S&P 500 slid down by 2.4%, Nasdaq’s tech wizards slipped 2.5%, and the Dow Jones said “Why not?” and dropped nearly a thousand points (2.5%) according to the ever-watchful Google Finance. If this were a soap opera, it’d be the episode where everyone’s checking their phones for the next plot twist.
So far this year, the S&P 500 has plummeted over 12%, while the Nasdaq looks like it’s taken the express elevator down, tumbling almost 18% as tech stocks stage a rather questionable exodus.
Why this market tantrum, you ask? Well, it’s not just the usual suspects this time. The spectacle stars Donald Trump, waving his social media sword at Jerome Powell, amidst rising fret over trade tariffs. It’s like a reality show, but with more spreadsheets and less sanity.
“Preemptive Cuts” in interest rates are apparently the latest catchphrase storming through the Twitterverse of Truth Social, courtesy of Mr. Trump himself on April 21.
He claimed, with the conviction of a man who’s just spotted a discount on steak, that “With Energy Costs way down, food prices […] substantially lower, and most other ‘things’ trending down, there is virtually No Inflation.” Clearly, his calculator is either on vacation or is as optimistic as a cat at a dog show.
The string of insults continues: Powell has been dubbed “Mr. Too Late” and “major loser” in the POTUS’s playbook, whilst stubbornly keeping interest rates at a stiff 4.5%, probably because he enjoys a bit of spice in his economic stew.
Not to be outdone, Powell took a swipe back, warning that Trump’s tariffs might cook up a nasty economic casserole known as “stagflation”—a phrase that sounds like inflation wearing a cloak of doom.
Trump, never one to mince words, called for Powell’s head, saying his “termination cannot come fast enough.” Meanwhile, the Fed plans to twiddle thumbs until May 7, with market sages predicting only a 13% chance of a rate cut. Note to self: bet against optimism.
US dollar’s Great Escape to the Basement
The US Dollar Index (DXY)—the fancy scorecard that tracks how the greenback is flexing against other currencies—has been slipping like a greased pig at a county fair, down over 10% this year. This week it sank to a three-year low, going below 98 on April 21 according to TradingView. Don’t worry, it’ll probably bounce back once someone finds the sniffles it caught.
Raoul Pal, the head honcho of Real Vision, summed it up nicely on April 22: “Everyone needs and wants a weaker dollar to service their dollar debts.” Basically, the world’s a giant game of Monopoly, and the dollar is trying to quietly sneak out with your pretend money.
Meanwhile, in the far corner of this economic circus, the crypto markets refused to join the panic party, clinging to their weekend gains like a cat to a curtain. The total crypto capitalization sat pretty at $2.83 trillion at the time of writing, with Bitcoin (BTC) playing the role of the ever-resilient hero, hitting a four-week high of $88,500 on April 22.
According to Bitfinex analysts, Bitcoin’s behaviour in the face of this global turmoil is “impressive resilience,” which, in human terms, roughly translates to “calmly ignoring the chaos while plotting world domination.”
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2025-04-22 06:52