Bitcoin takes back seat as Trump, Bukele focus on trade and immigration
US President Donald Trump hosted El Salvador’s President Nayib Bukele at the White House on April 14, with talks centered on trade and immigration, excluding Bitcoin from the public agenda.Pressing issues of migration and bilateral security cooperation set the tone of Bukele’s first official meeting at the White House during Trump’s second term. According to a livestream shared by Bukele’s office on X, Trump raised the possibility of transferring US citizens convicted of crimes to prisons in El Salvador, urging Bukele to expand the country’s prison system to house more prisoners. “I said homegrowns are next, the homegrowns. You gotta build about five more places.” Source: Nayib BukeleSince taking office, the Trump administration has deported hundreds of alleged foreign criminal individuals to El Salvador under a $6 million deal between the countries.Trump also addressed the ongoing trade war unleashed by his administration on April 2, suggesting a potential temporary exemption for automakers aimed at easing the transition of their supply chains.“I’m looking at something to help some of the car companies with it,” Trump told reporters present at the meeting, adding that the US auto industry “need[s] a little bit of time” to relocate production to the country. The meeting did not touch on digital assets and Bitcoin (BTC) policy — a flagship initiative of both presidents’ administrations. El Salvador adopted Bitcoin as legal tender in 2021, pioneering the Bitcoin strategic reserve approach later followed by Trump. The US president positioned himself as a pro-crypto candidate during the 2024 election. On March 6, Trump signed an executive order to create a Bitcoin strategic reserve and digital asset stockpile in the United States. The US holds nearly 198,000 BTC, valued at over $17 billion as of March. The reserve is primarily formed of Bitcoin seized in criminal and civil cases, including significant amounts from the Silk Road and Bitfinex hack cases.Related: How much Bitcoin does the US hold, and where did it come from?El Salvador’s BTC plans face IMF oppositionEl Salvador signed off in December a $1.4 billion loan agreement with the International Monetary Fund (IMF), which included commitments to unwind Bitcoin-related initiatives and reduce public sector involvement with digital assets.While the Salvadoran Congress amended its Bitcoin laws in January to comply with the deal, the government has continued its daily purchases of BTC. The country’s National Bitcoin Office’s tracker shows it currently holds 6,147.18 BTC, worth about $520.7 million at this writing. Related: Tether will relocate HQ to El Salvador after securing license
Spot Solana ETFs to launch in Canada this week
Spot Solana exchange-traded funds (ETFs) are set to launch in Canada on April 16, according to Bloomberg analyst Eric Balchunas. In an X post on April 14, the analyst shared a private client note from TD Bank, a Canadian financial institution, claiming the Ontario Securities Commission (OSC) greenlighted asset managers Purpose, Evolve, CI and 3iQ to issue ETFs holding Solana (SOL). The OSC did not immediately respond to Cointelegraph’s request for comment. Canada does not have a federal securities agency, with its territories and provinces applying their own securities laws. Toronto’s securities exchange is regulated by Ontario’s OSC. The ETFs are permitted to stake a portion of the SOL holdings for added yield, Balchunas said, adding that the upcoming listings are “our first look at the alt coin race.” Source: Eric BalchunasRelated: SEC approves options on spot Ether ETFsWaiting on US approvalThe US Securities and Exchange Commission (SEC) has acknowledged dozens of applications to list ETFs holding alternative cryptocurrencies, or “altcoins,” but so far has only approved funds holding spot Bitcoin (BTC) and Ether (ETH) for trading. Staking is still off limits for US crypto ETFs. Bloomberg analyst James Seyffart said Ether ETFs could be greenlighted to start staking as soon as May, but the process may take months longer. However, investors’ demand for altcoin ETFs may be weaker than for funds holding core cryptocurrencies, Katalin Tischhauser, crypto bank Sygnum’s research head, told Cointelegraph in August.“[T]here is all this frothy excitement in the market about these ETFs coming, and no one can point to where substantial demand is going to come from,” Tischhauser told Cointelegraph. Volatility Shares’ SOL futures ETF has roughly $5 million in net assets. Source: Volatility SharesIn March, asset manager Volatility Shares launched the first ETFs to track Solana’s performance using financial derivatives. Volatility Shares Solana ETF (SOLZ) has seen a lukewarm reception, attracting only around $5 million in net assets as of April 14, according to its website. “FWIW, the 2 solana ETFs in US (which track futures so not a perfect guinea pig) haven’t done much. Very little in aum. The 2x XRP already has more aum than both the solana ETFs and it came out after,” Balchunas said. Balchunas added that he “[w]ouldn’t read a ton into it” as a predictor for spot SOL ETFs. Magazine: Bitcoin eyes $100K by June, Shaq to settle NFT lawsuit, and more: Hodler’s Digest, April 6–12
Bitcoin traders target $90K as apparent tariff exemptions ease US Treasury yields
The 2-year and 10-year US Treasury yields dipped on Monday, April 14, after Bitcoin (BTC) closed its best weekly performance since the second week of January. Bitcoin gained 6.79% over the past week, but are enough factors aligned to support continued price upside? The 10-year treasury yield declined by 8.2 basis points to 4.40% during the New York trading session, while the 2-year treasury saw an 8 basis point slip to 3.88%. The drop in yields occurred on the back of possible tariff exemptions on smartphones, computers, and semiconductors, which were introduced to give US companies time to move production domestically. However, US President Donald Trump emphasized these exemptions were temporary in nature.US 10-year treasury bond yields chart. Source: Cointelegraph/TradingViewThe tariff exemptions announced on April 12 came at the end of a bullish week for Bitcoin. After forming new yearly lows at $74,500, BTC price jumped 15% to $86,100 between April 9-13. Easing US treasury yields could be a double-edged sword for Bitcoin. Lower yields reduce the appeal for fixed-income assets, improving capital injection into risk-on assets like BTC. Still, the uncertainty of “temporary exemptions” and the ongoing trade war with China keeps Bitcoin susceptible to further price volatility. As an “inflation hedge,” Bitcoin continues to draw mixed opinions, but recent uncertainty over trade policies increases inflation fears, improving BTC’s store of value narrative. Yet, recent US inflation data suggested a cooling trend, as the Consumer Price Index (CPI) for March 2025 indicated a year-over-year inflation rate of 2.4%, down from 2.8% in February, marking the lowest since February 2023, which could be indirectly bearish for Bitcoin in the short term.Related: Trade war vs record M2 money supply: 5 things to know in Bitcoin this weekBitcoin price hurdles present at $88K to $90KTrading resource Material Indicators noted that Bitcoin retained a bullish position above its 50-weekly moving average and quarterly open at $82,500. A strong weekly close implied a higher possibility that Bitcoin is less likely to re-visit its previous weekly lows anytime soon. The analysis added, “Bitcoin bulls now face strong technical and liquidity-based resistance between the trend line and the 200-day MA. Expecting “Spoofy” to move asks at $88k and $92k before they get filled.”Likewise, Alphractal founder Joao Wedson suggested that Bitcoin may be nearing a bullish reversal, as the Perpetual-Spot Gap on Binance—a key indicator tracking the price difference between Bitcoin’s perpetual futures and spot markets, has been narrowing since late 2024.Bitcoin Perpetual-spot price gap chart. Source: X.comIn a recent X post, Wedson highlighted that this shrinking gap, currently negative, signals fading bearish sentiment, with historical trends from 2020–2021 and 2024 showing that a positive gap often leads to a Bitcoin rally. Wedson noted that a flip to a positive gap could indicate returning buyer momentum. However, he cautioned that such negative gaps persisted during the 2022–2023 bear market.Related: Michael Saylor’s Strategy buys $285M Bitcoin amid market uncertaintyThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Commerce Secretary Lutnick walks back tariff relief on electronics
Commerce Secretary Howard Lutnick walked back the recent reciprocal tariff exemption on select electronics announced in an April 12 bulletin from the United States Customs and Border Protection.On April 13, Lutnick told ABC News that the reciprocal tariff exemption was temporary until the administration established a sector tariff regime for semiconductor products, which includes phones, graphics processors, and computing chips in a “month or two.” Lutnick added:”President Trump has called out pharmaceuticals, semiconductors, and autos. He called them sector tariffs, and those are not available for negotiation. They are just going to be part of making sure we ensure core national security items are made in this country.””We can’t be relying on China for fundamental things we need. Our medicines and our semiconductors need to be built in America,” Lutnick continued. The official also said he was confident that the US and China would arrive at a trade deal through negotiations.The emphasis on national security and onshoring critical industries could signal that the trade tariffs will be a long-term geostrategic policy and not simply a short-term negotiation tactic to make US exports more attractive, as some analysts have suggested.The Volatility S&P Index (VIX), a measure of the S&P stock index’s volatility, remains elevated amid macroeconomic uncertainty. Source: TradingView Related: Bitcoin ‘decouples,’ stocks lose $3.5T amid Trump tariff war and Fed warning of ‘higher inflation’Trade war heightens volatility and sends markets tumblingTrump’s trade tariffs crashed the stock and crypto markets, wiping away trillions in shareholder value as investors dumped riskier assets on fears of a lengthy trade war between the United States and its trading partners.In an April 10 X Post, Bloomberg analyst Eric Balchunas cited the SPY US Equity History Volume chart as evidence that the S&P 500 stock market index is now more volatile than Bitcoin (BTC).According to the analyst, the S&P 500 Index hit a volatility level of 74 in April, compared to Bitcoin’s 71.Stocks and crypto pumped following rumors of the Trump administration initiating a 90-day reciprocal tariff pause. Approximately $2 trillion was pumped into stocks on rumors of softer trade policies.Much of this value was then wiped away when Trump claimed that rumors of a 90-day pause were false and returned once the Trump administration did, in fact, issue a reciprocal tariff pause in the following days.Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Saylor signals Strategy is buying the dip amid macroeconomic turmoil
Strategy co-founder Michael Saylor has signaled that the company plans to acquire more Bitcoin (BTC) following a nearly two-week pause in purchases.The company’s most recent acquisition of 22,048 Bitcoin on March 31 brought its total holdings to 528,185 BTC.According to SaylorTracker, Strategy’s BTC investment is up by approximately 24%, representing over $8.6 billion in unrealized gains.Strategy continues to accumulate BTC amid the recent market downturn that took Bitcoin’s price below the $80,000 level, and the company continues to be closely monitored by BTC investors as a barometer for institutional interest in BTC.Strategy’s Bitcoin purchase history. Source: SaylorTrackerRelated: Has Michael Saylor’s Strategy built a house of cards?Bitcoin’s store-of-value narrative grows despite the recent price declineThe current macroeconomic uncertainty from the ongoing trade tensions between the United States and China has negatively impacted risk-on assets across the board.Stock markets wiped away trillions in shareholder value in response to Trump’s sweeping tariff order, and crypto markets also experienced a deep sell-off.Data from the Total3, an indicator that tracks the market capitalization of the entire crypto sector excluding BTC and Ether (ETH), shows that altcoins have collectively shed over 33% of their value since the market peak in December 2024.By comparison, BTC is only down roughly 22% from its peak of over $109,000 in January 2025 and is currently rangebound, trading around the $84,000 level.The Total3 crypto market cap, pictured in blue, compared to the price of Bitcoin. Source: TradingViewThe price of Bitcoin remained relatively stable amid a $5 trillion sell-off in the stock market, lending credence to Bitcoin’s use case as a store-of-value asset as opposed to a risk-on investment.Speaking with Cointelegraph at Paris Blockchain Week 2025, Cypherpunk and CEO of digital asset infrastructure company Blockstream, Adam Back said the macroeconomic pressures from a prolonged trade war would make Bitcoin an increasingly attractive store of value.Back forecasted inflation to surge to 10-15% in the next decade, making real investment returns on traditional asset classes such as stocks and real estate incredibly difficult for market participants.”There is a real prospect of Bitcoin competing with gold and then starting to take some of the gold use cases,” Back told Cointelegraph managing editor Gareth Jenkinson.Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express
Web3 needs to be more human, and emotional AI is the answer
Opinion by: Max Giammario, founder and CEO of KindredThe interfaces and user experience in Web3 tools are terrible, even more so when compared to their Web2 counterparts. This lackluster experience for Web3 is losing the attention of as many users as desired, and with how fast the ecosystem moves, these shortcomings are rarely paid attention to.AI agents can be an excellent tool to overcome these weaknesses. Their potential to improve development and user experience is remarkable, although it has yet to reach its real potential. Once combined with emotional AI, which will enable us to understand contexts beyond their programming, we will see a quantum leap from Web3 tools to ordinary users.Web3’s learning curve is very steepConsider your first interactions with a Web3 wallet — a scary, difficult experience. Many people fear that, at any moment, they could make a mistake, which could mean losing money. This situation can be less uncomfortable if we add agents with emotional AI that can guide new users and provide personalized support, keeping people at ease during their learning process.If the first interaction with Web3 is seamless in this way, adoption could grow. A better user experience would be a win-win for the entire industry, which suffers from having few users. Reaching a level of adoption of a Web2 tool would be a win for the ecosystem.Emotional AI companions would make everything easierWith the potential that emotional AI agents have, they would facilitate the experience of new users, and they could serve as personal assistants to interact with the rest of the Web3 tools in a more autonomous, personalized way.Emotional AI agents could act as motivational coaches, providing continuous, personalized and empathetic accompaniment that enables them to connect deeply with their users and guide them in the best practices to avoid significant losses in Web3.Recent: Inside an AI-powered Web3 game’s race to 100 million usersThese are just some of the most evaluated uses of Web3 today. The more applications it has in the future, the more potential is unlocked. Combining so much state-of-the-art technology, however, entails significant risks that must be considered in its development.Implementing emotional AI in Web3 carries risksIntegrating emotional AI within the Web3 ecosystem could be very beneficial. Still, it must be considered that it entails risks that any AI has, plus what the use of Web3 implies. One of the most significant risks would be using personal information because, as an emotional AI, it will require more information from its users, which increases the danger of data leakage.This same personalization could generate an unhealthy dependence on its emotional AI partner, so safeguards against this would have to be implemented. Even being so personalized, it will generate biased information, which will close the scope of the AI agent.Considering the risks mentioned above, while the technology is under development, by the time emotional AI agents launch, developers can forge the path to reduce these risks and implement all the benefits of this technology.Emotional AI is the key to greater adoption of Web3AI tools have become more widespread at a rate we have not seen since the launch of the internet. The speed of adoption is because AI tools have become straightforward tools to facilitate any task. The next step is emotional AI agents, which allow for closer AI companions who can provide better support.As complicated as the Web3 industry is, if these emotional AI companions became the standard in the ecosystem, all these tools would be available to any user. The Web3 adoption it would facilitate would be enormous, and all this value would be worth the risks.Opinion by: Max Giammario, founder and CEO of Kindred. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
BlackRock reports $3B in digital asset inflows during Q1
BlackRock, the world’s largest asset manager with $11.6 trillion in assets under management, reported $84 billion in total net inflows in the first quarter of 2025, marking a 3% annualized growth in assets under management.The firm’s strong performance was led by a record first quarter for iShares exchange-traded funds (ETFs) alongside continued strength in private markets and net inflows, according to BlackRock’s Q1 earnings released on April 11.Of the $107 billion in net inflows to iShares ETFs, $3 billion, or 2.8% of the total ETF inflows, was directed to digital asset products in Q1, BlackRock said.BlackRock’s net flow data in Q1 2025 (in billions of US dollars). Source: BlackRockAlternative investments also played a significant role in Q1, with private market inflows totaling $9.3 billion.Digital assets remain small segmentAs of March 31, digital assets accounted for $34 million in base fees or less than 1% of BlackRock’s long-term revenue.By the end of the first quarter, BlackRock’s total digital assets under management amounted to $50.3 billion, which represents about 0.5% of the firm’s $11.6 trillion in total assets under management.BlackRock’s business results in Q1 2025 (in millions of US dollars). Source: BlackRockBlackRock’s financial results suggest that digital assets still make up a modest share of the company’s business.Despite that, BlackRock’s $3 billion in digital asset inflows is notable given widespread liquidations in the Bitcoin ETF market earlier this year. The company’s figures suggest that investor interest in crypto-backed ETFs remains steady.Base fee growth shows “best start to a year since 2021,” CEO saysDespite BlackRock recording a 70% drop in net inflows in the first quarter of 2025 compared to the previous quarter, with inflows falling from $281 billion in Q4 2024 to $84 billion, BlackRock CEO Larry Fink pointed to the company’s solid fee growth as a major indicator of success.“We delivered 6% organic base fee growth in the first quarter, representing our best start to a year since 2021 and secular strength against a complex market backdrop,” Fink said in the report.Related: Bitcoin could reduce dominance of US dollar — BlackRockFink also mentioned that the company is focused on helping clients navigate market and policy changes while also providing insights on “long-term structural growth opportunities,” adding:“The goal for us is to keep our clients focused on the long-term, and help them achieve any near-term allocation or liquidity changes they need within the BlackRock platform.”While BlackRock saw $3 billion in crypto asset inflows in Q1 2025, some other Bitcoin ETF issuers have suffered massive outflows.Flows by issuer (in millions of US dollars). Source: CoinSharesAccording to CoinShares data, Grayscale saw roughly $1.4 billion in outflows from its crypto ETFs year-to-date as of April 4.Magazine: Bitcoin heading to $70K soon? Crypto baller funds SpaceX flight: Hodler’s Digest, March 30 – April 5
Ethical hacker intercepts $2.6M in Morpho Labs exploit
A known maximal extractable value (MEV) white hat actor intercepted about $2.6 million in crypto assets stolen from Morpho Labs’ decentralized finance (DeFi) protocol. On April 10, Morpho Labs implemented a front-end update on its Morpho Blue application. A day later, a hacker breached an address through a vulnerability caused by the update. Blockchain security firm PeckShield reported that an address lost $2.6 million due to the vulnerability. However, the security firm noted that “c0ffeebabe.eth,” a known white hat MEV operator, had front-run the transaction, effectively intercepting the stolen funds.At the time of writing, the funds had been transferred to a different wallet address. It’s unclear whether the funds have yet been returned to their original owner.Morpho Labs reverts front-end updateResponding to the incident, Morpho Labs reversed its front-end update. In a post on X on April 11, the team confirmed it had been alerted to the issue and rolled back the changes. The team also said that normal operations had resumed:“All funds in the Morpho Protocol are safe and unaffected. The Morpho team will provide a detailed update later today in this thread.”After further investigation, the team confirmed that its front-end was safe and that users don’t need to perform additional actions to secure their assets. The team said the update was pushed to enhance the transaction flow. However, specific transactions on the front-end were incorrectly crafted. The Morpho Labs team said they’ve identified the issue and applied a fix. They added that they would publish a more detailed explanation of the incident next week. Cointelegraph reached out to the Morpho Labs team on X but did not receive a response by publication. Related: MEV bot loses $180K in ETH from access control exploitWhite hat MEV operator c0ffeebabe.ethC0ffeebabe.eth is known to have contributed to the recovery of funds during DeFi hacks. In 2023, the white hat MEV operator retrieved around $5.4 million in Ether (ETH) from the Curve Finance exploit in July 2023. During the incident, c0ffeebabe.eth used a bot to front-run a malicious hacker to secure 3,000 ETH. The funds were then returned to the Curve deployer address. In 2024, the mysterious white hat actor also recovered funds stolen during the Blueberry exploit. In an update, the DeFi protocol said all drained funds had been front-run by c0ffeebabe.eth and returned. Magazine: Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express
Bitcoin traders’ sentiment shift points to next step in BTC halving cycle
Bitcoin’s (BTC) four-year cycle, anchored around its halving events, is widely recognized as a key factor in BTC’s year-over-year price growth. Within this larger framework, traders have come to expect distinct phases: accumulation, parabolic rallies, and eventual crashes. Throughout the four-year period, shorter-duration cycles also emerge, often driven by shifts in market sentiment and the behavior of long- and short-term holders. These cycles, shaped by the psychological patterns of market participants, can provide insights into Bitcoin’s next moves.Bitcoin whales eat as markets retreatLong-term Bitcoin holders — those holding for three to five years — are often considered the most seasoned participants. Typically wealthier and more experienced, they can weather extended bear markets and tend to sell near local tops. According to recent data from Glassnode, long-term holders distributed over 2 million BTC in two distinct waves during the current cycle. Both waves were followed by strong reaccumulation, which helped absorb sell-side pressure and contributed to a more stable price structure. Currently, long-term Bitcoin holders are in the new accumulation period. Since mid-February, this cohort’s wealth increased sharply by almost 363,000 BTC.Total BTC supply held by long-term holders. Source: GlassnodeAnother cohort of Bitcoin holders often seen as more seasoned than the average market participant are whales—addresses holding over 1,000 BTC. Many of them are also long-term holders. At the top of this group are the mega-whales holding more than 10,000 BTC. Currently, there are 93 such addresses, according to BitInfoCharts, and their recent activity points to ongoing accumulation.Glassnode data shows that large whales briefly reached a perfect accumulation score (~1.0) in early April, indicating intense buying over a 15-day period. The score has since eased to ~0.65 but still reflects consistent accumulation. These large holders appear to be buying from smaller cohorts—specifically wallets with less than 1 BTC and those with under 100 BTC—whose accumulation scores have dipped toward 0.1–0.2. This divergence signals growing distribution from retail to large holders and marks potential for future price support (whales tend to hold long-time). Oftentimes, it also precedes bullish periods.The last time mega-whales hit a perfect accumulation score was in August 2024, when Bitcoin was trading near $60,000. Two months later, BTC raced to $108,000.BTC trend accumulation score by cohort. Source: GlassnodeShort-term holders are heavily impacted by market sentimentShort-term holders, usually defined as those holding BTC for 3 to 6 months, behave differently. They’re more prone to selling during corrections or periods of uncertainty. This behavior also follows a pattern. Glassnode data shows that spending levels tend to rise and fall approximately every 8 to 12 months. Currently, short-term holders’ spending activity is at a historically low point despite the turbulent macro environment. This suggests that so far, many newer Bitcoin buyers are choosing to hold rather than panic-sell. However, if the Bitcoin price drops further, short-term holders may be the first to sell, potentially accelerating the decline.BTC short-term holders’ spending activity. Source: GlassnodeMarkets are driven by people. Emotions like fear, greed, denial, and euphoria don’t just influence individual decisions — they shape entire market moves. This is why we often see familiar patterns: bubbles inflate as greed takes hold, then collapse under the weight of panic selling. CoinMarketCap’s Fear & Greed Index illustrates this rhythm well. This metric, based on several market indicators, typically cycles every 3 to 5 months, swinging from neutral to either greed or fear.Since February, market sentiment has remained in the fear and extreme fear territory, now worsened by US President Donald Trump’s trade war and the collapse in global stock market prices. However, human psychology is cyclical, and the market might see a potential return to a “neutral” sentiment within the next 1-3 months.Fear & Greed Index chart. Source: CoinMarketCapPerhaps the most fascinating aspect of market cycles is how they can become self-fulfilling. When enough people believe in a pattern, they start acting on it, taking profits at expected peaks and buying dips at expected bottoms. This collective behavior reinforces the cycle and adds to its persistence.Bitcoin is a prime example. Its cycles may not run on precise schedules, but they rhyme consistently enough to shape expectations — and, in turn, influence reality.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Spot Bitcoin ETFs see $772M outflow as investors prepare for tariff-driven inflation
Bitcoin (BTC) spot exchange-traded funds (ETFs) faced significant pressure amid uncertainty caused by the ongoing global trade war. Between March 28 and April 8, these ETFs experienced net outflows totaling $595 million, according to Farside Investors data. Notably, even after most US import tariffs were temporarily lifted on April 9, the funds still recorded an additional $127 million in net outflows.This situation has left traders questioning the reasons behind the continued outflows and why Bitcoin’s rally to $82,000 on April 9 failed to boost confidence among ETF investors.Spot Bitcoin ETF net flows. Source: Farside InvestorsCorporate credit risk could be driving investors away from BTCOne factor contributing to diminished interest is the rising likelihood of an economic recession. “What you can clearly observe is that liquidity on the credit side has dried up,” Lazard Asset Management global fixed income co-head Michael Weidner told Reuters. Essentially, investors are shifting toward safer assets like government bonds and cash holdings, a trend that could ultimately lead to a credit crunch.A credit crunch is a sharp decline in loan availability, leading to reduced business investment and consumer spending. It can happen regardless of US Treasury yields because heightened borrower risk perceptions may independently restrict credit supply.RW Baird strategist Ross Mayfield noted that even if the US Federal Reserve decides to cut interest rates in an effort to stabilize turbulent markets, any relief for companies might be short-lived. Mayfield reportedly stated: “In a stagflationary environment from tariffs, you’ll see both investment grade and high yield corporate borrowers struggle as their costs of debt rise.” Despite the 10-year US Treasury yield remaining flat compared to the previous month, investor appetite for corporate debt remains weak.ICE Bank of America Corporate Index option-adjusted spread. Source: TradingView / CointelegraphDan Krieter, director of fixed income strategy at BMO Capital Markets, told Reuters that corporate bond spreads have experienced their largest one-week widening since the regional banking crisis in March 2023. Corporate bond spreads measure the difference in interest rates between corporate bonds and government bonds, reflecting the additional risk investors take when lending to companies.Related: Bitwise doubles down on $200K Bitcoin price prediction amid trade tensionTrade war takes center stage, limiting investor interest in BTCInvestors remain concerned that even if the US Federal Reserve cuts interest rates, it may not be enough to restore confidence in the economy. This sentiment also explains why the US Consumer Price Index (CPI) for March—at 2.8%, its slowest annual increase in four years—failed to positively impact stock markets. “This is the last clean print we’re going to see before we get those tariff-induced inflation increases,” Joe Brusuelas, RSM chief economist, told Yahoo Finance.Traders appear to be waiting for stabilization in the corporate bond market before regaining confidence in Bitcoin ETF inflows. As long as recession risks remain elevated, investors will likely favor safer assets such as government bonds and cash holdings. Breaking this correlation would require a shift in perception toward Bitcoin’s fixed monetary policy and censorship resistance. However, potential catalysts for such a change remain unclear and could take months or even years.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.