The global economy is entering a new phase of turbulence, and the crypto market, as always, is at the epicenter of major changes. From decreasing inflation in the U.S. to new tariff barriers between China and the U.S., from the launch of an AVAX-ETF to the start of state-run mining in Pakistan — all these events set the stage for significant volatility and opportunities in the digital asset market.
U.S. Inflation Falls: A Signal for the Fed and the Bulls
Former President Donald Trump highlighted the recent decline in U.S. inflation, citing data from the Consumer Price Index (CPI), which dropped to 2.4%, falling below market expectations. The previous figure was 2.8%, while core CPI in March also stood at 2.8% — the lowest reading since March 2021.
Against this backdrop, the likelihood of the U.S. Federal Reserve cutting interest rates has sharply increased, as indicated by FedWatch futures. Easing monetary policy is typically seen as a positive signal for risk-on assets, including cryptocurrencies. A rate cut makes traditional instruments less attractive and pushes investors toward alternatives — like Bitcoin and Ethereum.
Pakistan Launches State-Backed Bitcoin Mining
Amid an electricity surplus, the government of Pakistan announced plans to direct excess energy toward Bitcoin mining. This move makes the country one of the first in the world to use state-owned energy resources for systemic mining operations.
Given the availability of cheap electricity and high temperatures in some regions, the infrastructure could be adapted for large-scale mining farms. This not only strengthens BTC’s position as a global asset but also underscores its recognition at the state level — from governments previously skeptical of digital currencies.
For the mining industry, this is a major signal: if countries like Pakistan begin large-scale state-backed mining, the network hashrate could grow significantly, and the geography of BTC production may shift dramatically.
Nasdaq Files for AVAX ETF: Altcoins Step Into the Spotlight
Continuing the wave of institutional interest, Nasdaq has filed with the SEC to list an ETF based on Avalanche (AVAX) from investment firm VanEck. Following the approval of Bitcoin and Ethereum ETFs, launching altcoin-based funds is the logical next step for diversifying institutional portfolios.
Avalanche is one of the most technologically advanced blockchains, with high throughput and an active DeFi ecosystem. The launch of an AVAX-ETF could significantly increase the token’s liquidity and visibility among traditional investors. It could also act as a catalyst for the growth of other altcoins that have so far remained under the institutional radar.
China Declares a Trade War: Tariffs Rise to 125%
China’s Ministry of Finance has announced a tariff increase on U.S. goods from 84% to 125%, effective April 12, 2025. Chinese authorities stated that at such levels, exports from the U.S. become economically unviable, and China does not intend to respond to any further tariff hikes from the U.S.
These developments are heightening global trade tensions and adding uncertainty to traditional markets. Historically, in such periods, investors seek safe-haven assets — and Bitcoin is often viewed as “digital gold” amid geopolitical risks.
Additionally, worsening trade relations between the world’s largest economies may trigger accelerated dedollarization and growing interest in decentralized assets not controlled by any single government.
Conclusion: The Crypto Market as a Mirror of the Global Economy
The crypto market continues to respond sensitively to macroeconomic and geopolitical changes. Falling inflation in the U.S. paves the way for potential Fed policy easing and new market rallies. Pakistan emerges as a potential player in the global mining industry. Nasdaq clears a path for institutional investment in AVAX. And the trade war between China and the U.S. may further fuel demand for decentralized assets.
Taken together, these developments show that cryptocurrencies are becoming an integral part of the global financial dialogue, and their role in the world continues to grow.
