Bitcoin (BTC) Rebounds 16% Despite Wall Street Sell-Off Post-Tariff Shock

April 2025 saw major macroeconomic shocks unfold with US President Donald Trump's trade policy and global political changes in the spotlight. However, the cryptocurrency market demonstrated resilience in the face of these shifts.

BTC price increased 16% despite a $8.5 trillion crash in traditional markets

The month began with turbulence as Trump enacted sweeping reciprocal tariffs on April 2, targeting 185 nations. Global markets lost over $8.5 trillion in value by April 8, with the S&P 500 plunging 12% and the Dow Jones dropping 2,200 points.

Bitcoin (BTC) initially fell 9% during the crash but later decoupled from equities, rebounding strongly to trade at $94,729 by month-end — marking a 16.16% monthly gain.

As traditional markets remain volatile with Trump's administration instituting new tariffs and trade policies, crypto traders appear to have priced in the geopolitical risk. The strong recovery in BTC has reignited expectations of a breakout toward the $100,000 resistance.

The crypto market also saw new developments in April, including Canada's crypto-skeptic Liberals winning the federal elections but failing to secure a majority.

Also Read: Despite Pro-Crypto Stance, Conservatives Can't Save Canada From a Liberal Minority Government

The Liberal Party, led by former central banker Mark Carney, secured 169 seats — three short of a majority — in the April 28 vote. This outcome creates a minority government, potentially complicating any legislation regarding cryptocurrencies.

Carney, the former governor of the Bank of Canada and later the Bank of England, is known for his skepticism towards cryptocurrencies but support for blockchain applications and a central bank digital currency (CBDC). The party's campaign platform included pledges to "regulate cryptocurrencies to mitigate risk" and introduce a "digital dollar."

In contrast, the pro-crypto Conservative Party, under Pierre Poilievre, saw its poll lead collapse after being closely associated with Trump-era rhetoric — including comments suggesting Canada should become the "51st US state" and his open criticism of the Federal Reserve.

Two US states introduce pro-crypto legislation in April

Two US states moved to introduce new crypto-related bills in April 2025.

Texas saw the filing of HB 5352: Blockchain Technology Pilot Program. The bill proposes creating a pilot program to evaluate state-level use cases for blockchain technology in terms of transparency, efficiency, and cybersecurity. It would also authorize the State to issue a request for proposals (RFP) to select a private entity to develop and manage the pilot program.

The bill is being championed by Texas State Representative Steve McCambridge, who is optimistic about its passage, especially given the positive stance of the House and Senate toward Web3.

"The House and Senate are very interested in anything that can improve government efficiency and create jobs in Texas. We're also seeing a growing awareness of the potential of blockchain technology to solve some of the pressing problems we face today," McCambridge said in a statement to Benzinga.

Meanwhile, in Georgia, House Resolution 905 was introduced in April to encourage K–12 schools in the state to include lessons on blockchain and cryptocurrency. The resolution, sponsored by Georgia State Representative Todd Jones, aims to promote financial literacy and technological understanding among younger generations.

"As technology rapidly evolves, it's crucial that our younger generations are equipped with the knowledge and skills needed to navigate the future of finance and the role of cryptocurrency," said Representative Jones.

The resolution was passed by the House Education Committee in March and now awaits consideration by the full House of Representatives.

If approved, it would mandate the Department of Education to develop materials and programs for K–12 schools, aiming to integrate lessons on blockchain fundamentals, common cryptocurrencies, and the potential risks and benefits of investing in digital assets.

The move comes in response to the increasing mainstream adoption of cryptocurrencies and the growing demand for financial literacy among young people.

In other news, Arizona enacted a law that protects home crypto mining, classifying it under “computational power,” which includes AI, cloud computing, and blockchain node operation. The measure, part of a broader bill on data centers and computational power, was signed by Governor Doug Duecy on April 16.

The legislation aims to create a favorable environment for technological development in Arizona, particularly in the realm of blockchain and Web3.

Stablecoin market cap grows by $4B amid market uncertainty

The stablecoin sector saw an addition of $4 billion in market capitalization in April, driven by increased adoption and easing regulatory tension. According to CoinGlass data, the total market cap of stablecoins reached $184.35 billion by April 30.

Among the key developments that influenced this growth was the STABLE Act,