Inflation is cooling. The Fed is finally talking rate cuts. And markets? They’re waking up. But there’s more to the story -  and it’s wild. 

Here’s the breakdown of what just happened and what it means for crypto.

Tariffs Dropped, But It’s Just the Start

Trump’s tariff package landed:

  • 10% blanket import tax

  • 125% on Chinese goods

Markets loved it for a moment — S&P shot up 8% in two sessions.

Then came the hangover. Nasdaq dropped 4%. Dow down 2.5%.

Why? Reality hit. This wasn’t a pivot. Just a delay. The tariffs are paused for 90 days. And that’s just enough time for a bigger bomb to land.

Powell’s Watching, And the Market Knows It

With CPI falling, rate cut bets are back. The market’s pricing a 60% chance of a cut in May.

Rate cuts in the middle of political chaos and recession signals? That’s "bad news is good news" territory.

And guess what thrives in that zone?

Crypto.

BTC Isn’t Flinching — It’s Rotating

Bitcoin barely moved during the equity drop. That’s not weakness — that’s strength.

Money’s not exiting. It’s rotating. From TradFi into higher beta bets. Crypto’s leading the charge.

Strong L1s are waking up first.

Recipe for a Crypto Summer

Here’s the setup:

  • Tariffs bring inflation risk + political instability

  • Fed cuts bring liquidity + asset reflation

Put that together and you get one thing — crypto front-running TradFi. Again.

Not All-In Yet, But It’s Close

The signs are lining up. This might not be the moment to go max risk-on, but it’s time to prepare.

If the Fed moves, and the world’s messy, crypto wins.