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🥛 Trillions wiped from markets 💀
Everything is down. Here’s what to look out for...
Chevy Cassar
April 07, 2025
Today’s edition is brought to you by Grayscale - the crypto-native asset manager.
GM. This is Milk Road. The newsletter that finds room for you on its door when markets are sinking (Titanic-style).
Here’s what we got for you today:
✍️ Trillions wiped from markets
✍️ What to look out for this week
🍪 CZ’s out here doing side quests
TRILLIONS WIPED FROM MARKETS 💀
The bravest thing you can do right now? Have your Twitter notifications turned off.
Why? ‘Cause you’d be blissfully unaware of…
1/ This 👇
$1.35B was liquidated from crypto markets last night (increasing to $1.58B at the time of this writing), multiple ‘worst single day crashes’ were recorded across stock markets around the world, alongside a range of circuit breakers being hit.
(Circuit breakers = trading getting halted because things were falling too fast).
2/ And this 👇
$13T of value has been wiped from US markets since late Feb, and both the Nasdaq 100 and S&P 500 (indexes tracking the US tech industry and overall stock market) are currently down 22.7% and 18.9% from their highs, year-to-date.
(And drops of more than 20% in equities typically mark the start of a bear market).
The culprit? This guy 👇
Global trade war fears have continued as Trump appears to be sticking to his guns on tariffs.
The silver lining? While the market isn’t expecting a cut in May, the total rate cut expectations for 2025 have already doubled since Jan, going from 2 to 4.
(Rate cuts incentivize borrowing, which helps to pump fresh cash into the system, lifting stocks and crypto in the process).
Plus: historically, times of heightened weakness like this are often answered with a bounce. 👇
It doesn’t mean we’re in the clear – but the upside here is that the cause of all of this isn’t some opaque economic catalyst. It’s known, and controllable. 👇
As the theory goes:
Once the US government can refinance their $9T worth of debt (due this year) at a lower interest rate – tariffs can be lifted and markets can be fueled by low interest rates and potentially even Quantitative Easing (aka: money printing).
Which were the key ingredients in the 2021 bull market.
Here’s hoping that theory is proven to be true!
We’re sure you must have heard of Grayscale.
Did you know they have a fund (GDLC) that lets you invest in 5 of the top cryptos at once?
GDLC gives you exposure to $BTC, $ETH, $SOL, $XRP, and $ADA in a single investment. That’s pretty damn cool if you ask me.
Here’s everything else you need to know about GDLC:
Eligible for tax-advantaged accounts like IRAs
Managed by Grayscale - a name that’s been in crypto for over a decade
Rebalanced quarterly to stay aligned with the market
Individuals and institutions have already considered GDLC - now it’s your turn.
WHAT TO LOOK OUT FOR THIS WEEK 📆
If you’ve ever tried to massage a muscle cramp away, only for it to get more painful – you’ll have an idea of what the next week could hold.
(It’s likely going to get worse – as far as uncertainty goes – before it gets better).
Here’s what’s on the calendar…
1/ Monday – April 7
The Federal Reserve just held a pre-planned closed door meeting, which we probably won’t hear anything about.
…unless they announce emergency rate cuts.
(We’re not holding our breath. Though, best turn your Twitter notifications back on, just in case).
2/ Tuesday – April 8
A moment of calm, no major events planned (thank christ). 🧘♂️
Oh, and bonus: Kyle Reidhead, Head Of Research at Milk Road, will be joining us on The Milk Road Show to walk us through the current state of the market, where we're headed from here and what to expect over the coming weeks.
(If your portfolio is down bad and you’re starting to freak out — this is a must watch!).
3/ Wednesday – April 9
Oh god. Trump’s ‘reciprocal tariffs’ go into effect.
Silver lining: we’ll be joined by Ben Cowen, general voice of reason/Founder of Into The Cryptoverse, on The Milk Road Show on Wednesday!
4/ Thursday – April 10
Initial Jobless Claims data, which will hint at where unemployment rates are heading, and March CPI inflation data is released.
(Please lord in heaven, let this CPI data show inflation is falling and allow brother Jerome to cut rates hard and fast).
5/ Friday – April 11
We’re wrapping up the week with:
→ March PPI inflation data (a measure of wholesale inflation)
→ Michigan Consumer Sentiment data (a vibe check with consumers)
→ Q1 earnings for BlackRock (the biggest dog in the yard as far as crypto ETFs go) 👇
The takeaway?
Brace for further volatility!
Make sure your crypto is working for you. EarnPark is a yield platform that grows your crypto even when markets are down.*
Almost $6B in unrealized losses! Yep, that’s how much Saylor’s MicroStrategy was down in Q1 alone.
Stories of losses are everywhere. One DeFi whale just got wrecked for $74M after defaulting on a massive loan. Nowhere close to MicroStrategy’s $6B loss though. - DL News
CZ’s out here doing side quests. Somehow, he’s now the “strategic crypto advisor” for Pakistan? Craziest bit of news we’ve seen today.
We’re teaming up with MEXC for a special offer just for new users. Sign up with the exchange, make a few trades and you can win up to 250 USDT.**
*this is sponsored content.
**this is partner content.
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