Trading Desk Insights
Stocks took a hit on Friday as investors wrestled with ongoing tariff issues and processed some key inflation figures. The core PCE, a key gauge of inflation the Fed keeps a close eye on, rose 0.4% in February, pushing the annual inflation rate to 2.8%—both higher than expected. More worrying, Michigan’s long-term inflation expectations jumped to 4.1%, the highest it’s been in 32 years.
On the trade front, the market is still reacting to President Trump's tariff comments. He recently proposed a 25% tariff on all cars not made in the U.S., which sent auto stocks tumbling and raised concerns about an economic slowdown. Bloomberg reported that the European Union is looking at ways to make concessions to Trump in hopes of reducing tariffs from the U.S., which are expected to go up after April 2 when Trump is set to announce more details.
In the crypto world, things have been pretty quiet, with little in the way of big news. However, GameStop is making headlines by raising $1.3 billion through a private offering of convertible senior notes due in 2030. As part of its strategy, GameStop is planning to add Bitcoin to its balance sheet, which would make it the fourth-largest corporate holder of BTC, just behind Riot Platforms and ahead of Tesla. On a positive note, BTC ETFs have been seeing steady inflows, with about $1.1 billion coming in over the past 10 days. Meanwhile, ETH ETFs have seen continued outflows, totaling $163.2 million during the same time.
The News Room
FDIC Clarifies Process for Banks to Engage in Crypto-Related Activities
The Federal Deposit Insurance Corporation (FDIC) has updated its policy, allowing banks to engage in cryptocurrency activities that are legally permissible without obtaining prior approval, provided they effectively manage associated risks. This marks a departure from the previous approach that required advance clearance for such activities. Acting FDIC Chairman Travis Hill stated that this change aims to move away from past policies and anticipates further clarifications regarding banks' involvement in crypto products and services.
South Carolina explores Bitcoin reserve, drops Coinbase lawsuit
South Carolina has introduced the Strategic Digital Assets Reserve Act, proposing to allocate up to 10% of certain state funds to Bitcoin investments as a hedge against inflation. Also, the state has dismissed its lawsuit against Coinbase, which had alleged violations related to the exchange's staking services. This legal action's withdrawal follows a broader trend, with Vermont having previously dropped similar charges, and comes after the U.S. Securities and Exchange Commission ended its case against Coinbase in February 2025.
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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
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