Bitcoin is back— Trump softens tariff stance

Bitcoin broke through $94K, riding a wave of ETF inflows and Trump’s softer stance on the Fed and China. Meanwhile, Ethereum’s struggling with falling revenue and a bold new plan from Vitalik. And Wall Street just dropped a $3B BTC-backed fund.

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Cryptopolitan News
April 23, 2025 • Estimated Reading Time: 10 minutes

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📬 Today’s Byte

• Bitcoin is back

• US-China trade tensions: Trump softens stance

• Ethereum at crossroads

• Cryptopolitan’s smart money tracker

Market-moving headlines 🔥

US banks are walking into a potential recession with stronger balance sheets, tighter credit standards, and less exposure to financial landmines than they had just two years ago.

Software security firm Aikodo has alerted XRP Ledger developers to a vulnerability in the XRPL software development kit (SDK) that allows hackers to steal private keys.

Bloomberg analyst Balchunas disclosed that roughly 72 crypto ETFs are awaiting U.S. SEC approval to list or “list options.”

Chinese investors pulled back from Hong Kong equities on Wednesday, selling a near-record $2.3 billion worth of shares.

🟠 Bitcoin is back

Bitcoin (BTC) has surged past $94,000 — its highest level since March — reaching $94,198 as of Wednesday morning. This powerful rally followed President Trump's comments about the Federal Reserve and potential trade negotiations with China.

Source: TradingView

What's driving the rally:

  • Trump backs off Fed pressure: Trump stated he has "no intention of firing" Federal Reserve Chair Jerome Powell, easing market concerns after previously calling Powell "a major loser."

  • Trade war thaw: Treasury Secretary Scott Bessent revealed both US and China recognize the economic damage and need to find a path toward de-escalation. Trump indicated he would approach China talks in a "very nice" manner.

  • ETF money pouring in: Bitcoin ETFs saw $936 million in net inflows on Tuesday alone — the third-highest daily total this year.

  • Technical strength: Bitcoin has entered price discovery mode with no historical resistance overhead. Even with an RSI of 79.44 (typically considered overbought), analysts note these levels can sustain during strong bull cycles.

  • Decoupling from stocks: Bitcoin initially broke away from its usual correlation with US equities when it crossed $90,000 on Monday, though it returned to correlated movement after the S&P 500 gained on Tuesday.

Bitcoin's total market dominance remains strong at over 61%, while exchange reserves continue at all-time lows, indicating holders aren't rushing to sell. With momentum building and institutional interest growing, all eyes are on whether Bitcoin can maintain this trajectory toward the symbolic $100,000 mark.

🇺🇸🇨🇳 US-China trade tensions: Trump softens stance

US-China trade negotiations are taking center stage again, with President Trump signaling a potential easing of his tariff policy amid growing economic concerns.

Signs of a US strategy shift:

  • Trump softens tariff stance: During an Oval Office press event Tuesday, Trump stated tariffs on Chinese goods "will come down substantially" from the current 145%, though not eliminated entirely.

  • Negotiations status unclear: Despite Trump's optimism about reaching a deal "soon," Treasury Secretary Scott Bessent revealed that official discussions haven't yet begun.

  • China holds the cards: President Xi has declined calls from Trump and launched outreach to other global trading partners to counter US economic pressure.

Why experts think the US is feeling the heat:

  • Trade war costs mounting: The tariff battle threatens the $688.3 billion in bilateral trade between the nations reached in 2024.

  • China playing it cool: "The more Trump shows his anxiety, the more it tells China there's no need to panic," says Hong Kong University finance professor Chen Zhiwu.

  • Treasury holdings as leverage: Some analysts believe China is already "weaponizing its Treasury portfolio" by selling US bonds and moving into euros and German bunds.

Economic experts warn that "rising living costs, economic disarray, and popular discontent will eventually force a definite pivot of Trump's approach," according to senior economist Xu Tianchen.

The International Monetary Fund has already revised growth forecasts downward, citing the US-China standoff as a key factor.

🧑‍🔧Ethereum at crossroads: Buterin proposes RISC-V overhaul as network revenue plummets

Ethereum faces critical challenges as network fees hit multi-year lows and Vitalik Buterin proposes a radical redesign of its core architecture.

Revenue crisis hits Ethereum:

Ethereum financial statement bleeds red | Source: TokenTerminal.com

  • Fees collapse to 2020 levels: Transaction fees on Ethereum's base layer have dropped to just $0.16 per transaction in April 2025, the lowest since 2020.

  • Blob fees evaporate: Special fees from layer-2 solutions plummeted 95% since mid-March, generating only 3.18 ETH for the week ending March 30.

  • User exodus to layer-2s: The revenue drop isn't due to poor market conditions but users migrating to cheaper, faster alternatives like Arbitrum and Optimism.

  • Network cannibalization: Experts worry Ethereum's base layer is being "cannibalized" by its own scaling solutions, threatening its financial stability.

Buterin's bold solution - RISC-V architecture:

  • Execution layer redesign: Vitalik has proposed replacing Ethereum's current Virtual Machine (EVM) with the RISC-V instruction set architecture.

  • Speed and efficiency focus: RISC-V, an open-standard processor architecture, could significantly accelerate Ethereum's execution capabilities.

  • "Radical steps needed": Buterin emphasized that such dramatic changes might be "the only way to drive similar improvements for the execution layer" and keep Ethereum competitive.

The proposal has split the community, with supporters viewing it as necessary to stay relevant against faster rivals like Solana and Sui, while critics warn about the massive development work required and backward compatibility issues.

💰Cryptopolitan’s smart money tracker: $3B BTC backed move by Wall Street

Brandon Lutnick, the newly appointed Chairman of brokerage powerhouse Cantor Fitzgerald (and son of U.S. Commerce Secretary Howard Lutnick), is launching 21 Capital, a digital asset acquisition vehicle backed by $3 billion in Bitcoin.

The firm is being launched in collaboration with:

  • Tether – contributing $1.5B in BTC

  • SoftBank – investing $900M

  • Bitfinex – adding $600M

👉 Cantor Fitzgerald, a 78-year-old global financial services firm, is playing a pivotal role, structuring the initiative through Cantor Equity Partners, a Special Purpose Acquisition Company (SPAC) that raised $200M earlier this year.

21 Capital plans to convert Bitcoin contributions into shares priced at $10, using a BTC valuation of $85,000. Additional funding of $350M via convertible bonds and $200M through private equity is also on the table — all aimed at acquiring crypto-native assets and ventures.

🧠 The structure mimics MicroStrategy’s Bitcoin-centric approach, but with a twist: it merges traditional deal-making models (like SPACs) with Bitcoin-denominated capital — a first at this scale.

Track the biggest institutional moves first in the market — read the full deep dive

🧵 Thread of the day

Who is winning the tariff war? @CPOfficialtx breaks it down for you

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