Tarrif Shockwave Don Hit Market

03, May 2025

INVESTORS DON DEY RUN COMOT FROM RISK ASSETS (CRYPTO) LIKE MAD NOW

For the past 3 days, crypto market don jump up and fall back down like Kingda Ka rollercoaster.

(RIP to the real one.)

Make I break am down for you, wetin you miss, where we dey now, plus the small hope wey fit dey wey you never see...

• All the weekend gains don wipe comot

Total crypto market cap don drop like $350B from the weekend high, e don waka back to the price wey e dey before Crypto Strategic Reserve announce anything.

• Digital asset products see the biggest weekly outflows for record last week

From Feb 24 go reach Feb 28, like $2.9B waka comot from digital asset products – e dey show say TradFi people no wan do risk again.

• At the same time, 10-Year Treasury Yields dey fall

People dey see Treasury bonds as ‘safe place’ (especially when market wahala dey) – and anytime people rush go buy treasury bonds, the yield go fall down.

Gold sef dey shine…

Make I summarize everything for you like dis…

Investors don dey shift money comot from risk assets (crypto) enter safe assets like Gold and Treasury bonds because economic wahala dey grow.

E bad abi?

For paper, e no too sweet. But make I show you the silver lining wey dey inside the wahala:

Most times, investors dey rush enter safe assets when dem believe say economy go weak – and weak economy dey always follow reduced inflation.

(As economy dey weak → people go reduce how dem dey spend → meaning producers no fit dey increase price anyhow → inflation go slow down.)

And na exactly this kind ‘weak economy with reduced inflation’ Federal Reserve wan see before dem go fit continue to cut interest rates.

(If dem cut interest rates → loan and credit repayment go cheap → everybody go fit borrow and spend more → economy and asset price go rise.)

So e mean say chance dey high say Federal Reserve go pump more fresh cash enter global economy – plus China and US Treasury fit join body too!

…but e get one wahala.

And if dem no solve am quick, e fit spoil our whole ‘silver lining’ plan.

Froala Editor