Bitcoin climbs on inflation fears

Sign up to our weekly newsletter

Stay informed on the latest market updates – subscribe to our weekly newsletter today.

State of crypto

• Bitcoin climbs on inflation fears and tariff uncertainty
• Institutional ETF inflows: signs of strength, or window dressing?
• President Trump overturns IRS rule targeting DeFi exchanges
• Tether emerges as a leading centralised crypto lender

Check prices on the BTC Markets exchange

Bitcoin climbs on inflation fears and tariff uncertainty

Earlier this week, Bitcoin edged up to break through US$86,000 as inflation concerns and uncertainty over US tariff policy continued to weigh on broader market sentiment. According to a new consumer survey from the New York Fed, inflation expectations is expected to rise to 3.6% over the next year, with nearly half of Americans bracing for higher unemployment.

Initially, Bitcoin's price rose following reports that some electronics would be exempt from new tariffs but softened after President Trump clarified that “nobody is getting off the hook.” Analysts now say crypto’s recent moves – which closely track stock markets - reflect not just recession fears, but also deeper questions about the stability of the U.S. dollar in a shifting macro environment.

Check BTC

Institutional ETF inflows: signs of strength, or window dressing?

Bitcoin ETFs posted US$76.42 million in net inflows, a positive shift after weeks of outflows. BlackRock’s IBIT led with US$38.22 million. Encouraging but is it sustainable, or just end-of-quarter rebalancing?

Meanwhile, Canadian regulators have approved multiple Solana ETFs. This is a first, and it matters. It signals that institutions are broadening their bets. Are we seeing genuine conviction, or are institutions still hedging bets across assets?

Check ETH

President Trump overturns IRS rule targeting DeFi exchanges

US President Trump has signed a bill nullifying a revised IRS rule that would have expanded the definition of a crypto broker to include decentralised exchanges (DeFi). The rule, finalised under the Biden administration, was set to broaden tax reporting requirements across the DeFi space. The repeal is seen as a pro-crypto move that aligns with the Trump administration’s push to roll back regulatory overreach and support decentralised innovation.

Check XRP

Tether emerges as a leading centralised crypto lender

Tether has reportedly become one of the top centralised lenders in the digital asset market, alongside Galaxy Digital and Ledn, collectively holding nearly US$10 billion in loans as of Q4 2024, according to a Galaxy report. The company's lending activity - once a controversial part of its balance sheet - now plays a key role in stabilising market credit and liquidity, particularly for trading firms and institutions operating in a tighter financial environment. This represents a major change in Tether's role within the industry, seemingly filling the liquidity gap left by the collapse of other major crypto lenders.

Check USDT

Crypto Fear & Greed Index

Source: Fear & Greed Index

BTC Markets in the news

The Australian: Crypto in lockstep with stocks amid trade drama

“Ongoing China tariffs are a lingering worry, with also some potential hits to crypto’s mining and trading ecosystem,” says Charlie Sherry, Head of Finance at BTC Markets. “It’s a reminder that global trade drama is still an overhang for risk assets.”

Analysts are eyeing key support levels at US$73,757 and US$78,426, any break below could trigger a drop toward US$68,000. Since late 2022, Bitcoin has still managed a 300% surge, far outpacing stock market returns of 35–40%.

“Crypto’s still a top performer, just navigating some turbulence,” Sherry says. “These dips could prove to be opportunities, but it doesn’t seem like we will get a V-shaped recovery.”

Read the full article here.

Ausbiz: A "slow" grind for crypto, not a V-shaped bounce back

On ausbiz, BTC Markets Head of Finance Charlie Sherry unpacked the fading relief rally, ongoing macro uncertainty, and why a V-shaped recovery is unlikely.

He discussed the impact of U.S.–China tensions, a weaker Aussie dollar, and why tokenisation, M&A activity, and Galaxy’s Nasdaq listing could be bullish signs for the sector.

Watch the full interview.

Announcements

Dollar Cost Averaging (DCA): More assets have been listed!

We've expanded our list of supported assets for Dollar Cost Averaging (DCA), which makes it even easier for you to build your crypto portfolio over time. Whether you're just starting out or looking to automate your investments, DCA helps reduce the impact of market volatility by spreading out your buys.

Read our guide on how to DCA with BTC Markets.

Start stacking smarter today!

OTC Desk

Experience seamless trading: Unlock personalised, secure, and efficient OTC crypto transactions.

When it comes to large-scale crypto transactions, trading over the counter (OTC) with us offers a streamlined, secure, and personalised experience that other exchanges simply can't match. Our OTC desk minimises slippage and ensures deep liquidity, so you can execute sizable trades without the worry.

With our expert traders by your side, we tailor each trade to meet your specific goals. We prioritise speed and compliance, meaning you can lock in optimal prices with the comfort of full regulatory assurance.

Book a call with your OTC expert today.

The week ahead: economic events

Thursday, April 17th 

• Canada Interest Rate & Monetary Policy Report
• US Fed Chair Powell Speech, Building Permits, & Housing Starts
• Japan Balance of Trade
• Euro Area Deposit Facility Rate & Interest Rate

Friday, April 18th 

• Japan Inflation Rate YoY

Wednesday, April 23rd

• Germany Manufacturing PMI
• UK Manufacturing PMI & Services PMI

Thursday, April 24th 

• Germany Ifo Business Climate Index
• US Durable Goods Orders

Source: Trading economics

Market reflections

• Australia: RBA weighs rate cut amid trade turmoil and mounting deficit
• United States: Fed Chair warns tariffs will slow growth and raise prices
• China: China's Q1 GDP growth beats expectations and shows growing momentum
• Japan: Japanese bond yields spike, stirring market jitters
• Canada: Bank of Canada holds rates steady amid trade uncertainty

Australia: RBA weighs rate cut amid trade turmoil and mounting deficit

The Reserve Bank of Australia (RBA) has signaled openness to an interest rate cut in May, responding to uncertainties stemming from US tariffs and their potential impact on global growth. Despite a recent dip in inflation to 2.4%, the RBA remains cautious, emphasizing the need for more data before making definitive policy decisions.

Meanwhile, the imposition of a 10% U.S. tariff on Australian imports has added pressure to an already strained economy. Economists warn that the nation's looming US$1 trillion deficit could "strangle" economic growth, necessitating careful fiscal management. While Australia's flexible exchange rate and diversified export markets offer some resilience, the broader implications of global trade disruptions continue to pose significant risks.

Australia’s economy is undoubtedly navigating a turbulent period. Its economic outlook will heavily depend on the eventual outcome of international trade policies and domestic fiscal strategies. The RBA's upcoming decisions, coupled with government initiatives to address structural deficits, will be among the primary drivers that will steer the country through the current challenging times.

United States: Fed Chair warns tariffs will slow growth and raise prices

Federal Reserve Chair Jerome Powell has warned that President Trump’s sweeping new tariffs will likely lead to slower economic growth and higher consumer prices in the US, describing the potential impact as “significantly larger than anticipated.” Speaking after a turbulent week in global markets, Powell said household and business sentiment has taken a noticeable hit, with many expressing concerns about the long-term effects of rising import taxes. With tariffs on Chinese goods now reaching up to 245%, Powell cautioned that the full economic consequences remain highly uncertain, especially as trade, immigration, and regulatory policies continue to change.

China: China's Q1 GDP growth beats expectations and shows growing momentum

China's economy expanded by 5.4% year-on-year in the first quarter of 2025, surpassing analysts' expectations of 5.1%. This growth was driven by robust domestic consumption, industrial output, and a surge in exports ahead of significant US tariffs. However, the outlook is clouded by trade tensions which continue to escalate, with the US imposing much higher tariffs on Chinese goods and China retaliating with 125% duties on US imports. Economists anticipate that these tariffs could dampen future growth, with some forecasts lowering China's annual GDP growth to 4.5% or even 3.4%. Beijing is now expected to implement further fiscal and monetary stimulus measures to bolster domestic demand and mitigate the impact of the trade war.

Japan: Japanese bond yields spike, stirring market jitters

Yields on Japan's 30-year government bonds have surged to their highest levels since 2004, prompting concerns that Japanese investors may repatriate funds from overseas markets. This potential shift could lead to increased volatility in global financial markets, including cryptocurrencies like Bitcoin. While Bitcoin has shown resilience, recovering from last week's tariff-induced panic, analysts caution that further capital movements and a strengthening yen could exert downward pressure on risk assets.

Canada: Bank of Canada holds rates steady amid trade uncertainty

The Bank of Canada maintained its benchmark interest rate at 2.75% on April 16, pausing for the first time after seven consecutive cuts, as it assesses the economic impact of recent US trade policies. Governor Tiff Macklem highlighted the uncertainty stemming from new US tariffs, which have disrupted financial markets and raised inflation expectations. The central bank outlined two scenarios: one where tariffs are resolved, leading to modest growth, and another involving a prolonged trade war resulting in recession and inflation exceeding 3% by mid-2026. Further, he emphasized the bank's readiness to act decisively as more information becomes available.

Scam awareness

Text or SMS scams

Scam messages look like they are from the government, businesses you deal with or even your own family or friends to try to catch you out.

They sound urgent to get you to act quickly. They often have a link which will take you to a scam website. Scammers can steal any personal information entered on these scam websites and use it to take your money or commit fraud in your name.

Learn more at scamwatch.gov.au

Stay up to date on the latest news in the crypto space.

Sign up for free and join over 362,000 Australian traders who receive the BTC Markets Weekly Crypto Wrap.

Subscribe to our status page for live system updates or follow us on X.

Feedback

If you have any feedback on our newsletter or want to request specific content, please submit a support ticket and we will respond shortly.

Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

The information does not purport to be complete, accurate or contain all of the information that a person may require to make a decision. It may also contain forward looking statements, which are subject to known and unknown risks, uncertainties, and other factors. We recommend you obtain professional advice before making any decision with respect to the matters discussed in this document. To the maximum extent permitted by law, BTC Markets will have no liability for any loss or liability of any kind: (i) arising in respect of the information contained (or not contained) on this page; or (ii) arising from a person relying on any information or statement contained on this page. The information provided is only intended for recipients in Australia. This information cannot be reproduced without our prior written permission.