US President Trump made intense remarks last night, demanding that Powell immediately cut interest rates, coupled with no progress in US-Japan negotiations, putting further pressure on the financial markets, causing the four major US stock indices to drop significantly again. However, Bitcoin seems to have become a safe-haven target, breaking through $88,000 this morning against the trend.
US President Trump once again turned his fire on Federal Reserve Chairman Powell last night, publicly stating that there are almost no signs of inflation in the US, mocking Powell for always being a step behind and being a consistent loser, and once again firmly demanding that the Federal Reserve immediately cut interest rates, or else the US economy may fall into decline.
Many people are calling for 'preemptive interest rate cuts.' With energy prices plummeting, food prices (including Biden's 'egg crisis') significantly decreasing, and most other commodity prices also gradually declining, there are currently almost no signs of inflation.
These costs are steadily declining as I previously predicted, and inflation is almost unsustainable. However, unless that always late-to-the-game gentleman, the complete loser—Powell—immediately cuts interest rates, the economy may slow down.
Europe has cut interest rates seven times. Powell is always 'a step behind,' the only exception being during election periods when he acts quickly and lowers rates in time to help 'Sleepy Joe' Biden and later Kamala Harris get elected. But what has been the outcome? Let's see how all this works out now.
Japan's tough stance leaves the prospects for bilateral negotiations unclear.
On the other hand, after the initial round of trade negotiations between the US and Japan, Japanese Prime Minister Shigeru Ishiba expressed the strongest stance since the Trump administration launched the tariff war on the 21st in Congress, emphasizing that he would not 'give up everything' in exchange for an agreement, listing various measures for agricultural protection, including tariffs and minimum access rules, and clearly stating that protecting consumer safety is the bottom line.
The Japanese negotiation representatives explicitly ruled out the possibility of 'quickly reaching an agreement.' After the first round of negotiations, Economic Revitalization Minister Akizumi admitted that the differences between both sides are difficult to resolve and requested that the US side specify priorities to assess the scope for concessions. It is understood that this week, Japanese Finance Minister Kato Katsunobu will head to Washington to participate in the G20 and World Bank Spring Meetings, where he is expected to discuss further developments with US Treasury Secretary Yellen.
(Nikkei Asian Review) Subsequent analyses from (Reuters) pointed out that although Japan's stance is tough, its economic structure is heavily influenced by the US market, and in fact, Japan is actively seeking negotiation leverage to gain some tariff exemptions. The US previously granted a 90-day delay on tariffs for Japanese cars and steel, and Japan may negotiate by increasing imports of US agricultural products such as rice and soybeans, as well as relaxing automotive safety standards.
US stocks suffered a collective plunge, with no tech giants escaping unscathed.
Trump's fierce remarks, coupled with no progress in US-Japan negotiations, once again put pressure on financial markets, causing a significant decline across the board at the market opening on the 21st.
The Dow Jones index closed down 971.82 points, or 2.48%, at 39,142.23 points.
The Nasdaq index fell 415.55 points, or 2.55%, closing at 15,870.9 points.
The S&P 500 index dropped 124.5 points, or 2.36%, closing at 5,158.2 points.
The Philadelphia Semiconductor Index fell 78.93 points, or 2.10%, closing at 3,753.53 points.
The technology sector was also under significant pressure, with all seven major US stocks closing in the red. Among them, Tesla (TSLA) fell sharply by -5.75%, closing at $227.5, the largest decline; Nvidia (NVDA) also performed poorly, closing at $96.9, down -4.51%.
Bitcoin breaks through $88,000, and Strategy increases its position.
In the cryptocurrency market, which was originally declining in sync with traditional stock markets last night, Bitcoin (BTC) rebounded rapidly this morning, reaching $88,878 before the deadline, marking a new high for the month, with a 24-hour increase of 1.42%.
However, the performance of other altcoins has not been so good, with Ethereum (ETH) closing at $1,582, down 2.06% over the last 24 hours, and Solana (SOL) at $138.75, down 1.97% over the last 24 hours.
Image source: OKX
Additionally, according to the latest details disclosed by Strategy last night, the company once again demonstrated its firm commitment to Bitcoin by acquiring approximately $555.8 million worth of Bitcoin, raising its holdings to an astonishing 538,200 coins.
This acquisition took place between April 14 and 20, with a total cost of approximately $555.8 million for 6,556 Bitcoins, at an average price of about $84,785 per Bitcoin. After this transaction, Strategy's total Bitcoin holdings reached 538,200 coins. So far, Strategy's total investment cost in acquiring Bitcoin is approximately $36.47 billion, making its average holding cost about $67,766 per coin.
Based on an estimated market price of approximately $87,000 in April 2025, Strategy's total Bitcoin market value is around $46.8 billion, with approximately $10 billion in unrealized profits on the books.
