Crypto News Review & Fortuna AI Insights – Weekly Recap (April 4 to 9, 2025)

Weekly News Overview (April 4–9, 2025)

The first week of April brought high volatility and pivotal developments in the crypto space. Major headlines shook up markets and signaled big shifts ahead. From U.S. trade policy rattling investor confidence to a stablecoin scare and record Bitcoin buys, the industry faced both challenges and milestones. Meanwhile, regulators advanced new crypto legislation, and key technological upgrades edged closer to deployment. Below is a recap of this week’s top crypto news stories:

• Crypto markets fall after Trump lays out sweeping reciprocal tariffs; Ethereum, Solana drop 6%​
• Stablecoin issuer Circle takes another stab at a public listing​
• FDUSD stablecoin depegs 9% after Justin Sun raises concerns over First Digital’s solvency​
• House Financial Services Committee votes to advance bill to regulate stablecoins​
• MicroStrategy buys another 22,048 BTC for $1.9B, bringing its total holdings to 528,185 BTC​
• Bybit bounces back with $3.61B inflows after historic hack

Related: Last week Crypto News Review (March 25 to April 4, 2025)

Crypto markets fall after Trump lays out sweeping reciprocal tariffs; Ethereum, Solana drop 6%

The News: Crypto markets tumbled after U.S. President Donald Trump announced sweeping new import tariffs as part of a “Liberation Day” trade policy. The plan imposes a baseline 10% tariff on all imports (excluding certain North American goods) and tariffs up to 25–49% on specific countries and products (including a 25% levy on all foreign cars)​. Global markets reeled on the news, and within hours Bitcoin fell around 3% to the low-$80,000s, while major altcoins saw even sharper drops. Ether (ETH) slid over 6% below $1,800 and Solana (SOL) plummeted ~6.5% to around $118​. Across the top ten cryptocurrencies, losses ranged from 2–6%, with meme-related tokens even more volatile (the unofficial “Trump” memecoin plunged 12% below $10)​. 

Market Impact: The sudden tariff announcement sparked fears of a global trade war and potential recession, putting investors in risk-off mode. Crypto entered a technical bear phase, with Bitcoin roughly 25% down from recent highs and many altcoins (e.g. XRP, HBAR) dropping over 25% from their weekly peaks​. Analysts noted that rising costs (e.g. for mining hardware due to tariffs on chips) could squeeze the crypto industry, though some speculated the U.S. government might even direct new tariff revenues toward buying Bitcoin as a strategic reserve​. On the brighter side, a U.S. economic slowdown might prompt the Federal Reserve to cut rates or restart easing, historically conditions that have boosted crypto assets​. While short-term pain is evident, some believe a strong rebound could follow once markets find a new equilibrium​. In summary, Trump’s aggressive trade policy injected volatility and fear into crypto markets this week, underscoring the asset class’s sensitivity to macroeconomic moves​.

Stablecoin issuer Circle takes another stab at a public listing

The News: Circle Internet Financial, the company behind the USDC stablecoin, officially filed paperwork to go public, marking its second attempt to list on the stock market​. According to the SEC filing on April 1, Circle reported $1.68 billion in revenue and reserve interest income for 2024, with a net income of $156 million​. This IPO bid comes after Circle’s prior plan to go public via a SPAC merger in 2022 fell through when regulators failed to approve the deal (that deal had valued Circle at $9 billion)​. Circle is aiming to raise roughly $750 million in the offering, based on analyst estimates​, though its target valuation remains undisclosed.

Market Impact: Circle’s IPO move is a significant barometer of institutional appetite in the crypto sector. Despite recent market turbulence, the timing reflects a supportive U.S. policy environment under the current administration​, with President Trump’s team openly favorable toward crypto assets. If successful, Circle would become one of the first major crypto companies to go public since Coinbase, potentially legitimizing the stablecoin industry and increasing transparency around USDC reserves. The IPO news was taken as a bullish signal by many in the community – an indication that large players see long-term value and are willing to subject themselves to public-market scrutiny. It could also pave the way for other crypto firms (exchanges, custodians, etc.) to explore public listings. In the short term, USDC’s market position appears strengthened: Circle’s filing revealed USDC in circulation around $60 billion​, and going public may help reassure users of Circle’s financial health and regulatory compliance. Overall, Circle’s renewed push to the public markets highlights growing integration between crypto and traditional finance, even amid a choppy market backdrop.

FDUSD stablecoin depegs 9% after Justin Sun raises solvency concerns

The News: First Digital USD (FDUSD), a U.S. dollar-pegged stablecoin heavily used on Binance, suddenly lost its $1.00 peg, falling to as low as $0.87 on April 2​. The depeg (up to 13% at the extremes, before partial recovery) was triggered by a series of public allegations from TRON founder Justin Sun. Sun claimed on social media that First Digital Trust (FDT), the Hong Kong-based issuer of FDUSD, was “effectively insolvent” and had mismanaged reserves​. He cited a lawsuit alleging FDT redirected ~$456 million of TrueUSD reserves into unauthorized investments, and warned users to withdraw funds​. These accusations sparked a panic sell-off of FDUSD, erasing about $130–$200 million in market cap within hours​.

Market Impact: The FDUSD scare highlighted the fragile confidence in stablecoins and how quickly sentiment can turn. First Digital Trust vehemently denied Sun’s claims, calling them a “malicious smear” and insisting that FDUSD is fully backed by reserves in safe assets​. To stem the crisis, FDT processed roughly $26 million in redemptions for FDUSD holders and reiterated that all tokens remained redeemable at par​. These steps helped FDUSD climb back toward $1.00, and by late week the peg was largely restored. Nonetheless, the incident rattled traders: it showed that even a top-6 stablecoin can swiftly depeg on rumor-driven bank-run dynamics. Binance, where FDUSD is primarily used, saw liquidity temporarily thinned during the chaos. The episode also reignited debates about transparency and trust in stablecoin issuers – with calls for more frequent audits and perhaps third-party oversight to prevent misinformation-induced runs. Regulators in Hong Kong reportedly took notice; there were hints of investigations into trust companies amid the drama, and FDT hinted at potential legal action against Sun for spreading false information​. In summary, FDUSD’s brief depeg served as a cautionary tale: even stablecoins with full backing are vulnerable to crises of confidence in the absence of clear, trusted information.

House Financial Services Committee votes to advance bill to regulate stablecoins

The News: U.S. lawmakers made significant progress on crypto legislation this week. On April 2, the House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in a 32-17 vote​. This Republican-led bill creates a federal framework for payment stablecoins, requiring issuers to maintain 1:1 fiat reserves and detailed disclosures about their business and reserve assets​. Notably, it would ban stablecoin issuers from offering interest/yield on tokens to retail holders (to differentiate from bank accounts) and impose strict capital and liquidity standards​. During debate, some Democrats raised alarms that the Act could enable conflicts of interest – specifically President Trump’s family’s involvement in a new stablecoin venture. Rep. Maxine Waters argued the bill might allow the Trump-affiliated “World Liberty USD (USD1)” stablecoin (launched by a Trump family company in late March) to be used in government programs, enriching insiders​. Despite opposition, the committee advanced the bill to a full House vote. Meanwhile, a counterpart bill in the Senate – the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act – also cleared the Senate Banking Committee in an 18-6 vote, indicating parallel momentum in the upper chamber​.

Market Impact: For the crypto market, these legislative moves are a double-edged sword. On one hand, clear federal stablecoin rules could legitimize the stablecoin sector and unlock broader adoption, especially among institutions waiting for regulatory clarity. Top stablecoin issuers like Circle and Tether would face more oversight but also gain a defined path to legality in the U.S. (potentially boosting trust in USDC, USDT, etc.). This week’s developments suggest the U.S. is on track to establish the first comprehensive stablecoin law – a stark change from the regulatory uncertainty of prior years. On the other hand, the politicization of the process (e.g. concerns about the Trump family’s 60% stake in a stablecoin venture​) raised ethical and competitive questions. Some fear the ruling party could favor its own allies in the crypto industry. Nonetheless, industry leaders largely welcomed the progress: a “stablecoin bill” has been long sought to prevent another fiasco like Terra’s collapse and to integrate stablecoins into payment systems with proper safeguards. Outside the U.S., other regions also saw stablecoin developments this week – Brazil’s largest bank Itaú announced it’s exploring an in-house real-currency stablecoin, and Japan’s regulators are considering classifying crypto as financial products to curb insider trading​

. The global trend is toward more regulation, and markets are adapting to the idea that stricter rules are coming but may ultimately foster greater adoption. This week’s House committee vote was a key step in that direction.

MicroStrategy buys another 22,048 BTC for $1.9B, bringing its total holdings to 528,185 BTC

The News: Michael Saylor’s company MicroStrategy (now officially rebranded as “Strategy”) once again doubled down on Bitcoin. In an SEC filing disclosed March 31, the firm revealed it purchased 22,048 BTC for roughly $1.92 billion over the past week​. The massive buy, at an average price of $86,970 per coin, brings MicroStrategy’s treasury to an astonishing 528,185 BTC in total​. The company has now spent about $35.6 billion on Bitcoin overall, with an average cost basis around $67,500 per BTC​. At current market prices ($82K at the time), that hoard was worth over $43 billion​. Notably, the purchase was financed through stock issuance: during the week of the buy, MicroStrategy sold about $1.2B in new equity and tapped $18.5M from a preferred share offering to raise capital​.

Market Impact: MicroStrategy’s relentless Bitcoin accumulation continues to serve as a bellwether of institutional sentiment. This latest buy – one of the largest single-week purchases ever – reinforced bullish confidence in Bitcoin even as the market was slumping on macro fears. MicroStrategy (NASDAQ: MSTR) shares initially rose on the news of the purchase, as investors see the company increasing its leverage to any future BTC upside. The scale of holdings (over 0.25% of all bitcoins that will ever exist) also means MicroStrategy is increasingly intertwined with Bitcoin’s market dynamics. Saylor’s bold bet appears vindicated for now, as BTC’s price (~$82k) remains above the firm’s average cost basis​, putting them near breakeven after being underwater for some time. This week also saw other institutions jumping on Bitcoin’s dip: GameStop, the videogame retailer turned tech company, completed a $1.5 billion convertible note sale and announced plans to add Bitcoin to its corporate treasury​. And Tether Ltd., issuer of USDT, disclosed it bought $735 million in BTC during Q1 as part of its reserve management​. These moves by public companies and major crypto firms signal that institutional adoption of Bitcoin as a strategic asset is accelerating, especially on market pullbacks. In the long run, MicroStrategy’s ever-growing stash is seen by crypto proponents as an important supply sink (removing BTC from circulation into long-term custody), though skeptics caution it concentrates risk. This week’s buy underscored that Saylor’s conviction in Bitcoin remains unshaken, providing a morale boost to Bitcoin believers during an otherwise jittery week.

Bybit bounces back with $3.61B inflows after historic hack

The News: Cryptocurrency exchange Bybit staged a remarkable comeback following a massive security incident earlier this year. In February, Bybit suffered a $1.5 billion hack linked to North Korea’s Lazarus Group, one of the largest exchange hacks on record. Many feared lasting damage to Bybit’s reputation and liquidity. However, new data shows that in March the exchange recorded $3.61 billion in net inflows, as users returned in droves – even surpassing the $3.545B inflows of industry-leader Binance during the same period​. Bybit’s resurgence is credited to a series of user-focused initiatives: it rolled out a Retail Price Improvement program, introduced high-leverage options trading, and ran trading tournaments, all of which attracted traders back to the platform​. These efforts helped restore user trust and activity despite the prior breach.

Market Impact: Bybit’s swift recovery is an encouraging sign of resilience in the centralized exchange (CEX) sector. In the wake of the hack, the exchange clearly worked to bolster security and offer incentives, which paid off in renewed customer confidence. The fact that Bybit’s monthly inflows beat Binance – the largest global exchange – is striking, suggesting that Bybit is emerging as a serious competitor in the exchange landscape​. This competitive dynamic could benefit traders via lower fees, more features, and improved risk management across exchanges. More broadly, the episode highlights that a single security failure, while costly, doesn’t have to be fatal if handled transparently and proactively. Bybit’s team opting to cover losses, patch vulnerabilities, and engage its community helped preserve its reputation. For the market, having multiple robust exchanges is healthy for decentralization of liquidity. Still, the hack-and-recovery story is a reminder of the importance of security in crypto trading venues – and many users now diversify across platforms or use self-custody for safety. In summary, Bybit’s March turnaround contributed to a narrative of cautious optimism: even amid setbacks like hacks or regulatory pressures, top crypto businesses can bounce back through innovation and community engagement.

Technical, Fundamental & Sentiment Market Overview

Technical Analysis: Price charts flipped bearish this week for the first time in months. Bitcoin (BTC) failed to hold the ~$88K level and retraced to the mid-$80K range, confirming a short-term downtrend. By mid-week, BTC was roughly 25% off its recent peak, marking a technical “bear market” in the classic sense​. Ethereum (ETH) likewise broke below key support around $1,800, as its underperformance continued – ETH has been lagging due to ETF uncertainty (more on that below), and technical indicators suggest it could retest lower support near $1,200 if selling persists​. Many major altcoins saw even steeper corrections: several Tier-1 cryptos dropped over 20–30% from last week’s highs, reflecting higher volatility at the fringes. For example, XRP fell from ~$2.40 to near $1.90 ( >20% decline) before finding support at its 25-week moving average, and smaller alts like Hedera (HBAR) shed roughly 25%+​. Despite the pullback, it’s worth noting that long-term uptrends remain intact – BTC is still well above its 200-day moving average, and crypto indexes are significantly higher than a year ago. The coming days will test whether this dip is merely a healthy correction or the start of a deeper reversal. Traders are watching ~$80K on BTC as an important support (just below the current market price); a bounce from that region could signal consolidation, whereas a breach might open room to fall toward the mid-$70Ks. On the upside, resistance levels for a recovery rally would be around $90K for BTC and $2K for ETH – reclaiming those would improve the technical picture. In summary, technical momentum is bearish near-term, so caution is warranted until a clear trend reversal or stabilization pattern (such as a double bottom) emerges.

Fundamental Insights: From a fundamental perspective, the week brought a mix of caution and long-term optimism. On the macro front, the introduction of hefty U.S. tariffs (and countermeasures from trade partners) raised concerns about global growth, which typically weighs on risk assets like crypto. However, the flip side of rising recession risk is an expectation that central banks will pivot to easing: by April 9, futures markets were pricing in a possible Federal Reserve rate cut as early as May​. Such a dovish turn could inject liquidity and support asset prices if it materializes. Additionally, on-chain fundamentals in crypto remained robust despite price volatility. Stablecoin usage actually jumped to its highest level since February – over 300,000 daily active addresses using stablecoins and ~$72 billion transacted on-chain in a single day​

– indicating sustained demand for crypto dollar liquidity and possibly a flight to safety during the volatility. We also saw significant institutional and corporate moves that strengthen crypto’s foundation: Circle’s IPO filing (as discussed) points to greater integration with capital markets, and BlackRock’s crypto subsidiary gained regulatory approval in the UK while Galaxy Digital obtained a derivatives trading license​

– signals that big traditional players are deepening their crypto involvement. Another fundamental theme is the continued real-world adoption of blockchain tech. For instance, Sony announced it will begin accepting USDC stablecoin payments in its Singapore online store – a notable mainstream use case for crypto payments​. Overall, macro headwinds are present, but the fundamental case for crypto (as an innovative asset class and hedge in uncertain times) saw reinforcement through these developments. Long-term holders and institutions largely held firm or added to positions (as evidenced by MicroStrategy, Tether, etc.), suggesting that fundamental conviction in crypto’s future remains strong even as short-term traders turned more fearful.

Market Sentiment: Sentiment in the crypto market swung toward fear this week. By some measures, the mood reached “Extreme Fear” levels – the Crypto Fear & Greed Index, for example, dropped into the teens (indicating very high fear) after the market sell-off. On-chain data backed this up: roughly 25.8% of the total BTC supply (about 5.12 million BTC) is now being held at an unrealized loss by investors after the recent price decline​. This uptick in underwater holdings reflects many newer entrants buying higher and now nervously in the red. Despite the jitters, we also saw signs of resilient or contrarian sentiment among long-term crypto believers. Notably, during the peak of the panic, over $220 million worth of Bitcoin was withdrawn from exchanges in a short period​

– a signal that some holders were moving BTC into cold storage, possibly indicating accumulation rather than capitulation. This kind of dip-buying by whales and long-term hodlers often occurs when retail sentiment is fearful. Additionally, stablecoin inflows to exchanges spiked early in the week (as traders sold into stables or moved funds to sidelines), but by the end of the week those stablecoins began flowing back into asset purchases, according to blockchain analytics. Investor surveys and social media sentiment trackers showed a lot of short-term bearishness (concerns about tariffs, economic slowdown, and regulatory crackdowns), yet positive engagement on news like MicroStrategy’s buy and technological milestones tempered the negativity. In summary, the average crypto investor is cautious if not anxious right now, but we have not seen the kind of full-blown capitulation or mass exodus that marks major bottoms. Instead, the sentiment is one of uneasy consolidation – fear is elevated, but there remains an undercurrent of optimism that the worst could be over if external factors improve.

Forward-Looking Insights: Looking ahead, much will depend on how the macro narrative and policy developments evolve. If the trade war rhetoric cools or is offset by monetary easing (e.g. an early Fed rate cut), crypto markets could find a more supportive environment and rebound from the week’s lows. On the regulatory front, all eyes are on the U.S. Congress where the stablecoin bill will progress – crypto markets may respond favorably if a clear, constructive law seems likely to pass, whereas any unexpected hurdles or hostile amendments could create uncertainty. The upcoming Ethereum “Pectra” upgrade in May is another focal point; successful deployment of that update (aimed at improving network performance) could improve sentiment for ETH and related ecosystems. Additionally, the prospect of new ETF approvals looms in Q2: Grayscale just filed to convert its Digital Large Cap Fund (holding BTC, ETH, XRP, SOL, ADA) into an ETF​, and any positive signals from the SEC on that or other crypto ETFs would be a bullish catalyst. Conversely, another leg down in equities or unexpected adverse regulations (for example, tax changes or exchange enforcement actions) remain downside risks. Investors will also be watching Bitcoin’s network fundamentals post-halving – miner data this week showed record post-halving production for major miners like Riot Platforms​, which is fundamentally positive, but if prices stay down, miner selling could increase. In sum, the next few weeks will test crypto’s ability to navigate a complex mix of macroeconomic crosswinds and internal milestones. The base case among many analysts is that after this week’s shakeout, the market could enter a consolidation phase, digesting the news, with a bias toward recovery if inflation eases and innovation (like Layer-2 growth) continues unabated. Cautious optimism is the tone: traders are more risk-aware now, yet the building blocks for the next rally – institutional interest, tech upgrades, regulatory clarity – are gradually falling into place.

Technology Updates

Despite the market volatility, development in the crypto and blockchain space forged ahead with several notable tech updates and launches this week:

Ethereum’s ‘Pectra’ Upgrade Nears Deployment: 

Ethereum core developers announced that the Pectra network upgrade is officially set for May, after overcoming some technical hurdles in testing​. Pectra is expected to bring improvements in scalability and finalize Ethereum’s transition phases post-Merge. This forthcoming upgrade has been highly anticipated as it could lower fees and improve transaction throughput on the Ethereum mainnet, although the market impact this week was muted due to broader trends.

Privacy Pools Launch on Ethereum: 

A new protocol called Privacy Pools went live on Ethereum, offering users a way to mix transactions and preserve privacy while attempting to remain compliant with regulations. The tool is seen as a successor to Tornado Cash, and even Ethereum’s co-founder Vitalik Buterin publicly demoed the feature​. Privacy Pools allows users to prove their withdrawals do not come from illicit sources, aiming to enable regulated anonymity. This innovation could revive the conversation on on-chain privacy in a more regulator-friendly fashion.

Cross-Chain DeFi Expansion:

 In DeFi news, the 0x Protocol’s decentralized exchange aggregator Matcha expanded support to Solana. Matcha’s platform, previously Ethereum-focused, now enables cross-chain trading on Solana with the goal of helping users seamlessly swap assets across chains​. The expansion also comes with tools to help users avoid “rug pulls” in volatile memecoin markets. This is part of a broader trend of interoperability – bridging liquidity and users across Ethereum, Solana, and other chains – which was a theme this week as projects seek to be chain-agnostic.

NFT Marketplace Shifts and Innovation:

 In the NFT space, a major development was the shutdown of X2Y2, once a high-profile NFT marketplace. X2Y2 announced it is closing its marketplace after three years and pivoting to an AI-focused product, citing the need to adapt to market changes​. The decision reflects the cooling NFT trading volumes and the search for new product-market fit in the Web3 space (AI being a popular pivot lately). On a more positive note, Shrapnel, a Web3 gaming studio, revealed a partnership with the Chinese government to launch the first licensed blockchain game in China on an official “Real World Asset (RWA) Chain”​. This is a notable step as it marries state support with blockchain gaming – something that was previously thought unlikely in China. It could signal a new wave of government-sanctioned blockchain applications. Additionally, the largest K-pop agency HYBE (home of BTS) made news by ending its foray into blockchain – it scrapped a planned NFT project, underscoring the challenges entertainment brands have faced in integrating crypto initiatives​.

New Token Standards and Bug Bounties: 

A startup called Vana introduced a new token standard aimed at representing data-backed assets on EVM-compatible chains​. This “dData” token standard could enable novel use cases where tokens are collateralized or backed by real-world data streams (potentially useful in DeFi lending or data markets). Meanwhile, security efforts ramped up: audit firms Usual and Sherlock launched what they claim is the “largest bug bounty in crypto history,” a $16 million reward pool for anyone who can find critical vulnerabilities in select crypto projects​. This initiative reflects the heightened focus on smart contract security after several exploits in prior months.

In summary, innovation in crypto is far from slowing down. From Ethereum’s core upgrades to cross-chain interoperability and new privacy solutions, developers are pushing the boundaries. Even as some early movers (like certain NFT marketplaces) exit or refocus, new players and ideas are rising to take their place. This week’s tech updates show a dynamic ecosystem where infrastructure is improving (Layer-1 and Layer-2 upgrades), use cases are diversifying (gaming, identity, data tokens), and the community is proactively addressing past pain points (security and privacy). These technological strides often operate on a separate cadence from price action – laying the groundwork quietly for the next wave of user growth and adoption.

Conclusion of the Week

Overall, the week of April 4–9, 2025 encapsulated the two-sided nature of the crypto market at this stage. On one side, short-term risks and volatility were on full display: a bold geopolitical move (tariffs) sent prices tumbling, and a scare in a supposedly stable asset (FDUSD) reminded everyone of lingering fragilities. Traders who enjoyed a largely bullish Q1 suddenly had to grapple with macroeconomic uncertainty and rapid swings, a reminder that crypto remains a high-volatility arena. On the other side, the industry demonstrated remarkable resilience and progress. Despite the market dip, we saw regulatory clarity starting to form (particularly around stablecoins in the U.S.), continued institutional validation (Circle’s IPO, big Bitcoin buys, traditional finance entering crypto services), and continuous technical advancement in the blockchain ecosystem. The sentiment by week’s end was cautious but not despairing – many investors are in “wait and see” mode, bracing for more macro news but also looking ahead to potential positive catalysts. Key takeaways from this week include the importance of policy decisions (as shown by the outsized impact of Trump’s tariffs and Congress’s actions), the ongoing interplay between crypto and traditional finance (from IPOs to central bank signals), and the community’s capacity to adapt (as seen in how Bybit rebounded and developers pushed forward on upgrades regardless of market noise). In conclusion, the crypto market’s foundation appears to be growing stronger even as the price action remains choppy. Seasoned participants often note that periods of uncertainty and regulation ultimately set the stage for the next expansion. If that holds true, this week may later be seen as a healthy stress test that the industry passed, leaving it more battle-hardened and ready to move forward into the rest of 2025.