Crypto news dominated headlines on April 21, 2025, as the digital asset market surged by $60 billion, defying a catastrophic $1.5 trillion crash on Wall Street.
While traditional markets reeled from escalating trade tensions and a weakening dollar, cryptocurrencies and gold emerged as unexpected winners, signaling a shift in investor behavior.
Wall Street’s Meltdown
The U.S. stock market took a brutal hit on April 21, 2025. The S&P 500 fell 2.38%, sliding from 5,282.70 to 5,158.20, according to Google Finance.
The Nasdaq 100 dropped 2.46%, closing at 17,808 after starting at 18,258. The Dow Jones Industrial Average shed 2.48%, ending at 38,170 from 39,142. The Russell 2000, tracking small caps, lost 2.14%, hitting 1,840 from 1,880.
Why the carnage? A trade war escalation. The Trump administration’s tariffs sparked retaliation from Japan and China. Hopes for a tariff pause faded fast.
Companies tied to global supply chains suffered most. The USD Index weakened amid Trump’s policy surprises, including public clashes with Fed Chair Jerome Powell. Investors ran for cover.
Crypto News: Digital Assets Add $60 Billion
While stocks bled, crypto stood tall. The cryptocurrency market has demonstrated resilience, maintaining a total market cap of $2.83 trillion despite minor dips to $2.75 trillion.
Bitcoin (BTC) price has been a cornerstone of this stability, hitting a four-week peak of $88,500 on April 22 and trading at $88,175 after a 0.75% rise in the last 24 hours, per CoinMarketCap data. Altcoins and meme coins like Fartcoin and Dogecoin chipped in too.
This rise broke the mold. Crypto often tracks stocks, but not this time. Investors, rattled by Wall Street’s woes, pivoted to digital assets. The dollar’s slide made crypto a compelling alternative.
Gold joined the party, and it crossed $3,400, then hit $3,500 within 48 hours, per TradingView charts. New all-time highs marked its flight to safety. Investors flocked to gold as stocks faltered, and the dollar weakened.
Three forces fueled this divide. First, stocks tanked on trade war fears, while crypto and gold dodge those bullets. They’re less tied to corporate earnings or supply chains.
Second, the dollar’s drop—driven by Trump’s tariff chaos—boosted dollar-priced assets like gold and crypto. The public spats between Trump and Fed Chair Jerome Powell undermined confidence in the U.S. dollar, sending the USD Index into a tailspin.
Third, investors sought safe havens. Gold’s a classic. Crypto’s emerging as one. Investor confidence has improved, with the Crypto Fear and Greed Index moving from a fearful 31 in February to a neutral 47 recently, signaling a calming of earlier anxieties.
Trump vs. Powell: A Potential Market Disruptor
Speculation surrounds President Trump’s ability to oust Federal Reserve Chair Jerome Powell, whose term runs until May 2026. Powell insists that current law prevents his removal by the president.
Krishna Guha of Evercore ISI cautioned on CNBC’s “Squawk Box” that any attempt to undermine Fed independence could spark a significant U.S. equity market sell-off, driving up yields, weakening the dollar, and pressuring stocks.
Despite Trump’s push for lower interest rates, Powell has held firm. Still, Citigroup predicts the Fed will cut rates starting in June, with a total reduction of 125 basis points by the end of 2025.
