Market Vybe #11
Can we all just get along?
👉 Weekly Recap
Last week, both the crypto and stock markets continued to get absolutely crushed, largely in response to the Trump administration’s shockingly high tariffs.
On Monday, tensions escalated further when China fired back with retaliatory tariffs of 34%. While some other countries have shown a willingness to compromise, this tit-for-tat between the two largest economies in the world is shaking the markets.
Monday’s price action was nothing short of extraordinary. After the Nikkei and Shanghai Stock Exchange both dropped more than -7%, the S&P futures were down as much at -5% before markets opened.
It seemed like the US markets were heading towards a red day..
Until, at 10AM EST, CNBC reported that the Trump administration were considering a 90 day tariff pause.. and US stocks added $3 trillion in minutes.
However, just 30 minutes later, the White House clarified that the report was ‘fake news’, and they had no plans to delay the tariffs.
Was this really just a miscommunication? Or did someone need a well-timed liquidity event to unload an underwater position? We’ll probably never find out.
What this episode did confirm for us, though, is that this pullback feels very manufactured, and could be reversed just as quickly.
Here’s where things get even more wild:
Monday afternoon, the U.S. announced more tariffs on China. This time, an additional +50%, bringing the total tariff rate on Chinese goods to an eye-watering 104%. And yet, despite the escalation, the NASDAQ curiously ended the day green.
Meanwhile, crypto hasn't been so lucky. Trade war fears are hitting risk assets hard. As of writing:
Bitcoin: $78K
Ethereum: $1,500
Solana: $104
Bitcoin dominance has surged to 63%, its highest in 4 years. It's becoming clear that if the market is going to recover, it’ll have to be Bitcoin leading the way.
What Are These Tariffs Really About?
Yes, America’s manufacturing sector has been hollowed out over the last 50 years. But many of the jobs that were offshored simply don’t fit within today’s U.S. economy.
Take Vietnam, for example.
The U.S. just slapped 46% tariffs on Vietnamese imports. In its 2024 fiscal year, Nike manufactured 50% of its footwear and 28% of its apparel in Vietnam — thanks to their ultra-low labor costs. Vietnamese factory workers earn roughly $323/month, or about $2–$3/hour.
Now, with the new tariffs, the cost of importing a single pair of sneakers could rise by $8 or more per unit, directly eating into Nike’s margins, which already hover around just 11% after expenses.
But here’s the thing, this won’t bring manufacturing jobs back to America.
Why?
Because Americans aren’t going to work for $2–$3/hour. That’s not viable. Not even close.
Investing billions in creating a new factory might be a total waste of money if these policies are reversed in 3.5 years (when Trump’s out of office)
Instead, the added costs will get passed onto consumers, fuelling inflation.
Bottom line: Products get more expensive, Nike’s revenue and margins will take a hit, and as a result some people are going to get laid off.. It’s hard to see how this ends well for anyone in the near term.
👉 Solana News
$FARTCOIN leads the way. The SOL-based memecoin, has shown surprising resilience amid a broader crypto market downturn, surging over 25% in the past 24 hours.
The SEC has acknowledged Fidelity’s filing for a spot Solana ETF, and Grayscale has filed an S-1 for its own spot Solana ETF.
Circle mints another $250M USDC on Solana.
Solana Breakout Online Hackathon powered by colosseum kicked off. Each track has $80,000 worth of prizes to be won. The competition runs from April 14th to May 16th.
👉 Alpha of the Week
Janover Corporation, a small real estate software firm, has pivoted to become the "MicroStrategy of Solana," raising $42 million to build a Solana-centric treasury under new leadership from ex-Kraken executives.
It’s stock soared 842% on Monday, after the announcement.
Janover joins TSXV-listed Sol Strategies as the latest public company to pivot toward Solana. Sol Strategies recently acquired an additional 24,000 SOL to add to their holdings.
👉 Vybe Announcements
- The [REDACTED] hackathon is ongoing until end ofApril. Come join the Vybe Telegram Bot Challenge - $5000 in prizes up for grabs from the Vybe team!
- Vybe team is gearing up for the AlphaVybe V2 launch planned for April. Stay tuned by following us on Twitter/X for more info.
- Vybe will be at the startup village in Toronto, taking place from May 1st - May 16th, with workshops and events planned for builders on Solana. If you’re participating in the Colosseum Hackathon, Vybe will be providing free access to our APIs. Connect with with us on Telegram for details. Startup Village registration here.