Rumors of reduced US tariffs on China have sent ripples through the crypto market, sparking speculations of a potential uptrend. Influential voices like Bill Ackman have hinted at both China and the United States’ renewed thoughts on tariffs. This article studies the possibilities of Trump’s tariff easing and its potential impact on the crypto market.
US Tariff Easing: A Potential Boost for Crypto Market
American hedge fund manager Bill Ackman suggests that both the US and China are highly incentivized to reduce tariffs to more reasonable rates (10-20%). Reportedly, a pause in tariffs, such as for a 180-day period, could pave the way to negotiations, potentially boosting the crypto market. According to Ackman, reduced US tariffs could attract more companies to invest, likely increasing the adoption of cryptocurrencies.
If the tariff persists, companies with supply chains in China will rapidly relocate to other countries like India, Vietnam, Mexico, and the US. Such a move could prompt companies to question China’s reliability for long-term sourcing and production. Ackman stated,
The longer tariffs persist, the more companies will relocate their supply chains out of China. This could lead to increased investment in countries like India, Vietnam, and Mexico. As Ackman notes, “the cake is already baked” – companies will no longer feel comfortable relying on China for a major portion of their supply chain.
In addition, tariffs are particularly damaging to small companies that rely heavily on China for goods and other services. It could also result in a prolonged uncertainty in the crypto market.
Thus, Ackman’s argument suggests that China’s long-term view in trade negotiations could be damaged by the US tariffs. Time is indeed on the US side, and China needs to negotiate a deal quickly to mitigate economic consequences. A pause in tariffs could be a step towards a mutually beneficial agreement. A tariff reduction could spark a bullish rally in the crypto market, echoing the positive sentiment seen after Trump’s recent comments on delaying tariffs.
Bitcoin price continues to struggle under the $90,000 mark on Tuesday April 22, as into crypto in response to Trump’s onslaught on the US Fed Chair unsettling global financial markets. In an exclusive interview, AMLBot CEO Slava Demchuk hints how compliance standards and blockchain analytics tools could improve global investor confidence and accelerate sovereign adoption of cryptocurrencies.
Crypto Hacks Hampering $5 Trillion Market Cap Growth Target
The cryptocurrency market is targeting a $5 trillion valuation in its next bull cycle but faces a growing spate of security breaches.
According to CertiK’s Q1 2025 Hacked report, total losses from 197 crypto crime incidents reached approximately $1.67 billion—more than three times the losses recorded in the previous quarter.
Cryptocurrency Market Cap hits $2.83 trillion as of April 22, 2025 | Source: Coingecko
One of the largest incidents involved centralized exchange Bybit, which suffered a $1.45 billion exploit. CertiK reports that attackers are increasingly relying on sophisticated methods, including social engineering, AI-generated scams, and smart contract manipulation, to evade detection.
With institutional interest expanding and sovereign entities exploring digital assets, experts say unchecked security risks could slow growth and undermine confidence in the asset class.
Compliance Expert Provides Risk Mitigation Impact
Speaking to the risk spate of crypto exploits, Demchuk emphasized that blockchain compliance tools themselves can become targets if not properly secured. “Tools designed to enhance transparency and detect risk can, if misused, enable phishing and obfuscation of illicit activity,” he said.
Crypto Crimes Q1 2025 By Risk Factor | Source: Certik
According to the Certik chart above, Phishing, Code vulnerability and Private Key compromise are the most successful hack methods, each occurring 81, 68 and 15 times respectively. Combined, the three factors were responsible for just $206 million or 8% of the total losses.
Meanwhile, High-profile hot wallet compromise, occurring 3 times, including the Bybit hack, resulted in $1.45 billion losses, which accounts for more than 80% of total heisted funds.
“Our mission has always been to democratize access to compliance tools and promote crypto hygiene across the digital asset ecosystem. In our view, compliance platforms must ensure accessibility for good actors without opening the door to malicious use.
That’s why we implemented firm access controls and continue working with law enforcement globally to track stolen assets, dismantle fraud networks, and assist victims.”
AMLBot has responded by implementing a series of safeguards: business-only onboarding tiers, real-time threat modeling, and segmented dashboards that limit access to sensitive data for retail users.
This approach differs from competitors such as Scorechain and BitOK, which Demchuk says lack rigorous identity verification requirements.
Demchuk said these controls are designed to prevent misuse of compliance infrastructure and reflect the need for tools that evolve alongside the threats they are meant to address.
Compliance as Catalyst to Prevent Crypto Crimes
AMLBot’s systems have reportedly prevented more than $100 million in potential losses since 2019. The platform screens wallets for links to criminal activity and uses machine learning to detect patterns associated with common fraud schemes, including pig butchering scams.
Demchuk cited the company’s recent cooperation with Thai authorities as an example of how public-private collaboration can strengthen crypto security.
He advocates for basic global compliance measures—such as KYC verification and politically exposed person (PEP) screening—even in jurisdictions without formal regulatory oversight. These tools, he argues, could reduce the scale of losses like those seen in the first quarter.
Compliance as Catalyst for Institutional Confidence
In addition to preventing fraud, compliance is viewed as a key factor in attracting institutional capital. The EU’s Markets in Crypto-Assets (MiCA) framework has raised the regulatory bar for crypto firms operating in the bloc.
Demchuk believes compliance tools and standardised practices can help cryptocurrency protocols and firms enhance due diligence processes.
As sovereign entities consider holding Bitcoin reserves and more institutional products come to market, Demchuk said the next phase of growth will depend on how well firms integrate compliance into their operations. Without it, he warned, the sector may struggle to maintain long-term credibility.
Conclusion
Bitcoin’s rise above $90,000 on Tuesday signals strong investor appetite amid macroeconomic uncertainty in the US markets.
But as the cryptocurrency industry grapples with security risks the $1.7 billion in stolen crypto during the first quarter of 2025, represents a 330% increase from Q4 2024 figures, beaming critical spotlight on global compliance infrastructure.
AMLBot CEO Slava Demchuk says a combination of analytics, repsonsible use of compliance tools, and proactive risk controls will be necessary to reduce incidence of crypto crimes and attract institutional capital.
Without such measures, the industry’s $5 trillion market cap goal may remain out of reach.
The US government’s strategic crypto reserve has been a hot topic of discussion, sparking expert opinions and debates. While President Donald Trump has already signed an executive order for a Bitcoin reserve, the fate of XRP, SOL, and ADA hangs in balance. However, the Trump administration’s upcoming disclosure of its crypto holdings is expected to bring clarity to the inclusion of altcoins in the US reserve.
Notably, the US Department of the Treasury and other government agencies are expected to expose their Bitcoin and other crypto holdings this week. Let’s unveil this crucial move’s potential implications on the US crypto and financial landscapes.
US Government To Disclose BTC and Crypto Holdings
In a recent X post, Bitcoin Magazine CEO David Bailey unveiled a crucial event on April 5, 2025, which is poised to revolutionize the US financial economy. According to Bailey’s post, the US government is set to complete a comprehensive audit of the country’s Bitcoin holdings this Saturday. Bailey said, “Depending on what we learn, might answer many of the open questions about the recent price action.”
The upcoming audit will provide a detailed inventory of the government’s Bitcoin portfolio, held across federal agencies. It will also provide insights into the collection of other cryptocurrencies like XRP, SOL, and ADA. Thus, this audit could also provide clarity into the possibility of including these altcoins in the US crypto reserve.
How Will the Audit Impact the US Crypto Reserve?
For context, President Donald Trump proposed a strategic crypto reserve to include XRP, ADA, and SOL in the US reserve. This development came amid growing speculations of the adoption of Bitcoin as a reserve asset.
Significantly, Trump’s move invoked criticism, with Bitcoin maximalists questioning the legitimacy of other cryptocurrencies to be a national reserve.
Though Trump signed an executive order for establishing a BTC reserve, there is still uncertainty surrounding the altcoin reserve. However, the US government’s decision to reveal its crypto holdings could bring transparency and clarity to the nation’s digital assets. The audit may also shed light on the potential developments within the government and its decision on altcoin reserves.
US Government’s BTC Holdings: A Closer Look
According to Arkham Intelligence data, the US government currently boasts a total of 198,012 BTC worth around $16 billion. As per crypto czar David Sacks’ statement, the US government has seized approximately 400,000 Bitcoin through civil and criminal asset forfeitures over the past decade.
Though the US government’s Bitcoin holdings are well-documented, its altcoin portfolio is still shrouded in uncertainty. Nonetheless, experts believe that the audit has the potential to clarify the government’s altcoin holdings and reserve management strategies.
Launch Coin on Believe (LAUNCHCOIN) has seen explosive growth, surging nearly 3,000% in the past week and 27,000% in a month as interest in the Believe App spiked. The Solana-based platform lets users launch tokens directly through X (formerly Twitter) replies.
While activity on Believe has cooled recently, LAUNCHCOIN’s rapid rise has fueled speculation about the platform’s long-term potential. At the same time, questions remain about the sustainability of this growth and the risks tied to the broader Internet Capital Markets trend it represents.
Believe Turns Tweets Into Tokens—But at What Risk?
Believe is a Solana-based memecoin launchpad that allows anyone to create tokens simply by replying to posts from its “Launchcoin” X account.
The app was founded by Ben Pasternak and rebranded from an earlier project called Clout. Its native token, Launch Coin On Believe (LAUNCHCOIN)—originally PASTERNAK—skyrocketed in the last seven days.
Believe enables creators to launch meme coins instantly via social media, collect fees from trades, and graduate tokens to Meteora if they hit a $100,000 market cap.
The model removes regulatory and technical barriers, enabling 24/7 global capital formation without the need for accreditation, banks, or brokers. While promising, it also draws criticism for its speculative nature and similarities to meme coins.
Believe App Activity Slows After Brief Surge in Token Launches
Believe App saw a surge in usage between May 13 and May 15, with users launching over 4,000 new tokens per day through its social-media-based platform.
This explosive activity briefly positioned Believe as one of the most active launchpads in the Solana ecosystem.
However, the pace has since slowed considerably—falling to around 2,600 new tokens on May 16 and just 895 on May 17. The decline suggests that the initial hype surrounding the platform may be cooling, at least in the short term.
Daily Tokens Launched per Launchpad. Source: Dune.
In terms of market share, Believe reached a high point on May 15, capturing 13.6% of all Solana launchpad token launches—its strongest showing to date. However, this share dropped to just 2.6% by May 17.
Daily Tokens Launched per Launchpad (Market Share). Source: Dune.
Still, some Believe tokens are finding success. Seven of the biggest tokens launched across Solana launchpads in the past seven days originated from the Believe App.
Yet in the last 24 hours, only two tokens from Believe have entered that category, which shows the platform’s current volatility.
Top Tokens In Last 24 Hours and Last 7 Days. Source: Dune.
Believe generated $14.17 million in revenue over the past 7 days, nearly matching Pump’s $16 million. However, in the last 24 hours, revenue fell sharply to $340,016, while Pump maintained a much higher $2.5 million.
LAUNCHCOIN Surges 3,000% in a Week—What’s Next?
LAUNCHCOIN, the native token of the Believe App, has surged nearly 3,000% over the past seven days, climbing from $0.008 to $0.25. This rapid price appreciation has pushed its market cap to approximately $250 million.
If current momentum holds, LAUNCHCOIN could soon challenge resistance at $0.38. A breakout could potentially pave the way toward the $0.50 level, doubling its current market cap to around $500 million.
However, if on-chain signals point to declining engagement or fading hype, the token could face a correction, first retesting support at $0.16, especially if the narrative around Internet Capital Markets doesn’t live up to its hype.
A break below that level may expose it to further downside toward $0.097, marking a deeper retracement from recent highs.
