April 2nd Tariffs Incoming

Crypto continues to face some pressure with the uncertainty looming around the new tariffs going into place on April 2. Tariff concerns have led to inflation worries, limiting Bitcoin and other crypto assets which are considered to be risk assets among investors. Bitcoin has fallen 18% in the two months following the initial tariff announcements. Much focus will be on April 2 to see how investors react to the fresh US tariffs being implemented. Markets dislike uncertainty so this next week should reveal some investor sentiments and possibly bring some clarity.

Marathon Miner to Sell $2 Billion of Stock to buy Bitcoin

Marathon (MARA) a bitcoin mining company who currently has the second largest bitcoin treasury among public traded companies behind Strategy is set to offer a fresh $2 billion stock offering to buy more Bitcoin. Even through MARA mines 30 bitcoin daily they want to accumulate as much Bitcoin as possible as soon as possible. Following in the footsteps of Saylor's Strategy strategy MARA will look at any and all ways to raise money to buy more Bitcoin no matter if current stockholders are be diluted.

My primary observation is that Bitcoin's capped total supply, is the biggest driver behind companies like MARA and MSTR acquiring it now, before supply becomes scarce or too expensive. These multi-billion-dollar companies are issuing additional stock or debt because they view Bitcoin as one of the most valuable assets to hold in the world. Other companies are racing to do the same, such as Gamestop who recently announced the same strategy.

Quick Hits

• Japan set to classify crypto assets as financial products.
• Bitcoin dominance among all crypto assets hit highest levels in 5 years.
• Incoming SEC hair discloses $6 million in crypto holdings.
• El Salvador buys more Bitcoin for its strategic reserve and their President Bukele set to meet with Trump at the White House in April.

Technical Chart Corner

The stock to flow chart shows what the estimated price of Bitcoin based on the number of Bitcoins available in the market relative to what is being produced each year. While tons of chart focus on other facts surrounding Bitcoin this particular chart focuses purely on the supply of Bitcoin, hence the increased around the having timeframes. As you can see from from prior points in the chart when the price is below the Stock/Flow line in time it always reverts back to the line and sometimes over it.