Ackman predicts crypto meltdown

April 07, 2025

Reading time: 5 minutes

Hong Kong embraces staking: Clear rules, bold web3 vision

Key points:

  • Hong Kong’s SFC now allows licensed exchanges and funds to offer staking services under strict new guidelines.

  • Exchanges must retain control of staked assets, disclose risks, and get approval before launching staking products.

News - Hong Kong’s Securities and Futures Commission (SFC) just greenlit staking services for licensed exchanges and funds — a move that could cement the city’s role as Asia’s top Web3 hub.

Announced at the Hong Kong Web3 Festival, the new framework outlines a regulated path forward for platforms offering yield-generating staking services. Licensed Virtual Asset Trading Platforms (VATPs) can now seek SFC approval to launch staking, but only if they retain full control over client assets and avoid third-party delegation.

In a circular issued on April 7, the SFC emphasized transparency, requiring platforms to disclose slashing risks, lock-up periods, unstaking processes, custodial arrangements, and outage protocols. Staking providers must also report regularly to the regulator.

Funds with more than 10% of their assets in digital tokens may also participate, provided staking aligns with fund objectives and investor disclosures are clear. However, leveraged staking remains off-limits.

Web3 growth over speed chasing - SFC executive Christina Choi cautioned against hype-driven strategies, pointing to the NFT downturn and Bybit’s recent shutdown of its NFT platform. Instead, she called for a “pragmatic” approach that prioritizes fundamentals over fleeting trends.

“Rather than chasing every new spark, we believe in a pragmatic approach — strengthening the fundamentals and fostering a supportive ecosystem where Web3 can thrive sustainably,” Choi said.

Hong Kong bets big on blockchain - The move comes as part of the SFC’s “ASPIRe” roadmap to future-proof the digital asset space. The city’s fintech sector has already grown 250% since 2022. With access to Asian markets, ETF approvals under its belt, and a regulatory playbook unlike its stricter neighbors in Singapore and the U.S., Hong Kong is signaling it’s open for serious crypto business.

Bill Ackman warns of “economic nuclear winter” as crypto tanks

Key points:

  • Bitcoin and Ethereum plummet amid escalating U.S. tariff fears.

  • Bill Ackman urges 90-day pause, citing collapse in business confidence.

News - Bitcoin fell to $77,300 and Ethereum tumbled 14% to $1,555 as crypto markets nosedived following escalating U.S. tariff tensions. The dramatic drop comes in response to President Donald Trump’s sweeping import duties announced last week — including a 25% tariff on all foreign-made cars and a new 10% baseline tariff on all imports.

Hedge fund billionaire and Trump supporter Bill Ackman issued a dire warning, calling for a 90-day pause on the new tariffs before their April 9 implementation. Without it, he warned, the U.S. could face an “economic nuclear winter” marked by collapsing business confidence and mass layoffs.

“This is not what we voted for,” Ackman posted on X. “The president is losing the confidence of business leaders around the globe.”

Crypto reels, then whipsaws on rumors - Markets briefly rallied on April 7 following rumors of a possible pause. Bitcoin bounced back to $80,000, and XRP jumped 10%. But the White House quickly denied the speculation, sending prices down again.

The fallout has already triggered $240 million in crypto outflows, with Bitcoin alone seeing $207 million in redemptions. Meanwhile, U.S. Bitcoin ETFs posted $172 million in net outflows last week.

BitMEX founder Arthur Hayes said he’s still buying the dip, while MEXC’s Tracy Jin warned of a potential summer plunge to $52,000–$56,000.

What’s next? - As the April 9 tariff date nears, traders remain cautious. Some see a long-term opportunity for Bitcoin as “digital gold,” but ETF outflows and volatile sentiment suggest that institutional confidence is waning — at least for now.

CZ tapped as Advisor to Pakistan’s Crypto Council, web3 ambitions grow

Key points:

  • Binance founder Changpeng ‘CZ’ Zhao has been appointed Strategic Advisor to the Pakistan Crypto Council (PCC).

  • CZ met with Pakistan’s Prime Minister, Finance Minister, and top regulators to discuss Web3 and digital asset adoption.

News - Pakistan is doubling down on its crypto ambitions by naming Binance founder Changpeng Zhao (CZ) as Strategic Advisor to its newly formed Pakistan Crypto Council. The appointment was announced following CZ’s visit to Islamabad, where he met with the country’s Prime Minister, Finance Minister Senator Muhammad Aurangzeb, and senior officials from the State Bank, Securities and Exchange Commission, and the Law and IT Ministries.

With the PCC operating under the Finance Division, CZ is expected to help guide Pakistan’s push to become a Web3 and digital finance hub. He will advise on key aspects such as crypto regulation, blockchain infrastructure, adoption, and education.

Pakistan signals openness to innovation - “This is a landmark moment,” Finance Minister Aurangzeb said. “We are sending a clear message to the world: Pakistan is open for innovation.” Bilal Bin Saqib, CEO of the PCC, echoed the sentiment, adding, “With CZ onboard, we aim to become a regional leader in blockchain-powered finance.”

CZ noted Pakistan’s demographic advantage, citing its population of 240 million—over 60% of whom are under 30—as a driving force behind the country’s crypto potential. “The potential here is limitless,” he said.

Part of a broader global play - CZ’s advisory role in Pakistan follows a similar agreement signed with Kyrgyzstan, where he’s helping develop blockchain infrastructure and education through a partnership with the country’s National Investment Agency.

As CZ expands his global Web3 advisory efforts, Pakistan appears ready to embrace digital transformation—this time, with a seasoned crypto pioneer by its side.

Trump’s ‘Digital Fort Knox’ forces crypto audit across U.S. agencies

Key points:

  • Federal agencies must report their crypto holdings to the U.S. Treasury by April 7, per Trump’s executive order.

  • The Strategic Bitcoin Reserve and Digital Asset Stockpile aim to centralize and manage crypto seized by the government.

News - U.S. federal agencies are racing to comply with a new mandate requiring them to report all crypto holdings to Treasury Secretary Scott Bessent by April 7. The directive stems from an executive order signed by President Trump on March 6, signaling a broader national push to formalize digital asset management.

The order outlines two new structures—a Strategic Bitcoin Reserve, dubbed a “digital Fort Knox,” and a Digital Asset Stockpile—meant to centralize and guide how the government stores or liquidates its crypto.

While the data reported to the Treasury will remain confidential for now, the initiative marks a major shift in how the U.S. treats digital assets.

Digital Fort Knox and strategic flexibility - According to David Sacks, the White House’s AI and Crypto Czar, the Bitcoin Reserve will be seeded with BTC seized via civil and criminal forfeitures. The government currently holds around 198,000 BTC, worth roughly $15 billion, based on Arkham Intelligence data. In contrast to previous policies—where the U.S. sold off 195,000 BTC for just $366 million—Sacks confirmed the BTC in the reserve will be held long term.

Meanwhile, the Digital Asset Stockpile will house assets like ETH, XRP, and SOL, with the flexibility to trade, sell, or use them for operational purposes. This two-pronged strategy balances permanence with liquidity.

Tariffs trigger market slide, but crypto policy matures - Although Trump’s pro-crypto tone boosted markets earlier this year, the 10% baseline import tariff, with China facing 34%, has now reversed sentiment. The overall crypto market lost over 8% last week, dropping to $2.5 trillion in market cap.

Still, the executive order signals a growing institutional approach to crypto stewardship. Whether or not these holdings are made public, the U.S. is now treating crypto as a strategic national asset—one that could influence both policy and portfolios in the years ahead.

Did you know?

  • BlackRock’s Bitcoin ETF shattered records in 2024, becoming the fastest ETF in U.S. history to reach $20 billion in AUM—doing so within just five months of launch. By early 2025, BlackRock’s iShares Bitcoin Trust (IBIT) had exceeded $50 billion, highlighting surging institutional demand for regulated crypto exposure.

  • According to a 2024 Pew Research Center report, 17% of U.S. women aged 18–29 had invested in, traded, or used cryptocurrency. Among men in the same age group, the figure was significantly higher at 42%, underscoring a generational shift in crypto adoption trends.

  • Global crypto payments are gaining traction, with recent estimates suggesting that over 50,000 merchants worldwide now accept cryptocurrencies. This growth, up from around 15,000 in early 2024, is fueled by rising crypto ownership and integration with platforms like BitPay and Coinbase Commerce.

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Top 3 coins of the day

Fartcoin (FARTCOIN)

Key points:

  • At press time, FARTCOIN was trading at $0.49, reflecting an 11.19% increase over the last 24 hours.

  • It was one of the top trending tokens on CoinMarketCap, buoyed by strong Bollinger Band support and neutral RSI conditions.

What you should know:

Fartcoin continued its unexpected upward momentum, recording a sharp double-digit daily gain. Price action stayed comfortably above the middle Bollinger Band, while the narrowing upper and lower bands hinted at stabilizing volatility. The Relative Strength Index (RSI) hovered around 54—suggesting that the coin wasn’t overbought yet and still had room to run. Volume indicators showed consistent participation from both retail traders and speculators, helping FARTCOIN maintain resilience even during recent market-wide corrections. This price movement aligned with recent bullish projections pointing to a potential 160% surge, especially as the memecoin narrative gains steam again. Traders should monitor the upper Bollinger Band at around $0.59 as a potential resistance level. If this zone is breached with strong volume, it could validate the rally thesis circulating in crypto forums.

Kaspa (KAS)

Key points:

  • At press time, KAS was trading at $0.06, reflecting an 11.29% increase over the last 24 hours.

  • The price surged above its 9-day SMA, signaling a potential short-term trend reversal.

What you should know:

Kaspa surprised the market with a sharp intraday rebound, rising over 11% after days of compressed price action. The price closed above the 9-day Simple Moving Average for the first time in nearly two weeks, sparking optimism among short-term traders. Meanwhile, the Awesome Oscillator edged closer to neutral territory, hinting at declining bearish momentum after a prolonged red streak. Volume showed a moderate pickup during the rally, reflecting renewed interest among bottom-fishers. If the bullish volume persists, KAS could retest the $0.07 psychological level, with the next resistance to monitor being the March high around $0.078. That said, traders should remain cautious, as the AO has not fully confirmed a bullish crossover yet. Until a clear green breakout bar appears on the oscillator, any upside could still face resistance from short-term profit-takers.

Zcash (ZEC)

Key points:

  • At press time, ZEC was trading at $30, reflecting a 14.72% drop over the last 24 hours.

  • The price fell sharply below the lower Bollinger Band, triggering a high-volume breakdown.

What you should know:

Zcash witnessed a dramatic price plunge, breaking through key support levels with an almost 15% intraday decline. The drop pushed the price well below the lower Bollinger Band, typically a signal of heightened volatility and potential oversold conditions. This move came on the back of a sharp increase in trading volume, suggesting strong bearish conviction and possibly forced liquidations. The Bollinger Band width had expanded in recent days, hinting at an impending volatility spike — and the market delivered just that. Meanwhile, the MACD histogram flipped aggressively bearish, and the MACD line crossed below the signal line, reinforcing the downward momentum. From a technical standpoint, ZEC could see a short-term bounce or consolidation near the $28–$30 zone, but if bearish pressure continues, the next key support level to monitor would be around $26, near a previously tested range from February. On the flip side, the $34 level now acts as immediate resistance if buyers step back in. Traders should remain cautious until signs of price stabilization appear on both volume and MACD.

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