Bitcoin Crashes Below $84K as Market Panic Grips Investors

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.4230-1.4450

Euro                 1.4920-1.5130

Sterling            1.8060-1.8290

WTI Oil (opening level) $70.25

The CAD is opening at 1.4338 ( 0.6974 ) 

Headlines 

·    Trump said during his first cabinet meeting of his second term as president that he would impose 25% tariffs on the EU late yesterday, as he said the bloc “was formed to screw the United States”.,

·    Trump said yesterday that the 25% tariffs threatened against Canada and Mexico would take effect on April 2, almost a month beyond the original 30-day delay of the tariffs announced at the end of February, although Commerce Secretary Lutnick noted that this delay would only be possible if Canada and Mexico address Trump’s demands on disrupting the trade in the illegal drug fentanyl.

·    Trump said that US oil giant Chevron’s permit to produce and export oil to the US will be terminated this week, a key financial lifeline for the country. Trump linked the decision for the insufficiently democratic conditions at last summer’s election and because Venezuela is not moving quickly enough to repatriate illegal immigrants to the US.

·    Sales of new single-family homes in the US fell 10.5% in January 2025 to an annual rate of 657,000, below expectations of 680,000. This was the lowest in three months, with high mortgage rates and severe weather, especially in the South, reducing demand.

·    US Secretary of State Rubio said yesterday that having a relationship with Russia is important to avoid cutting off the country such that it becomes completely dependent on China. Some are calling the US reversal on its attitude toward Russia a “reverse Nixon”.

Key Points

·    Equities: Nvidia beats estimates but remains volatile; Trump confirms 25% EU auto tariffs; AI optimism supports semiconductors

·    Volatility: VIX dips to 19.10; markets await GDP, jobless claims data; tariff risks persist

·    Digital Assets: Bitcoin drops below $84K overnight before rebounding, ETF outflows accelerate, market panic intensifies

·    Currencies: US dollar firms on latest Trump tariff threats

·    Fixed Income: US treasury yields drop further as US growth concerns mount

·    Commodities: Gold in correction mode, crude plunges despite supply concerns