Investors Shift to Crypto, Gold, and Equities Amid Tariff Volatility

Welcome to the US Morning Crypto Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee to see how investors in emerging markets are doubling down on digital assets and tokenized alternatives as the US dollar falters and inflation risks rise.

Investors Turn To Crypto, Gold Amid Imminent Challenging Economy for the US

Escalated trade war chaos and abounding recession concerns, these narratives have put the status of the US as a haven in question while exacerbating volatility in financial markets.

Now, headlines in Washington are focused on escalating trade tensions, making US crypto news a key market driver. According to Raafi Housain, CEO of digital asset platform Fasset, trading volume has surged internationally for particular assets.

 “While US tariff headlines have dominated the macro conversation, in emerging markets we’re seeing a more nuanced response. In countries like Indonesia and Pakistan, trading activity on Fasset has more than doubled this week — partly as users return from Eid, but also due to growing demand for assets that feel resilient amid uncertainty,” Housain told BeInCrypto.

This suggests that perceptive investors are rethinking their strategies and repurposing their portfolios. Specifically, they are looking to new avenues, such as emerging markets, where access to traditional assets has historically been limited.

“Crypto is leading that surge, but we’re also seeing increased appetite for tokenized gold and, interestingly, US equities,” he added.

This portfolio diversification effort is unsurprising, considering US President Donald Trump’s tariff agenda is triggering global market volatility.

Already, macroeconomic signals are darkening despite the Federal Reserve’s (Fed) current inflation figures not fully reflecting the impact of ongoing tariffs.

Economists are sounding the alarm, with Moody’s Analytics chief economist Mark Zandi warning of inflationary pressures by summer.

“…inflation statistics will look pretty ugly by mid-summer if the current trade policies remain in place,” Zandi stated.

Zandi did not rule out the possibility of a recession, with his sentiment coming despite President Donald Trump’s 90-day pause on all reciprocal tariffs, but for China.

This warning aligns with China’s assertion that retaliatory tariffs on US goods lack competitiveness under current tariffs. Recognizing that tariffs are effectively a tax on imports paid by US businesses, Zandi added that these costs are usually passed on to consumers.

Meanwhile, as the investment scope shifts for well-informed investors, Housain notes adaptation, not panic.

“It’s clear that investors in high-growth markets aren’t retreating; they’re recalibrating — seeking diversification and more control in an unpredictable environment,” Housain explained.

Elsewhere, the dollar index (DXY) is dipping against a progressively rising cost of goods. Against this backdrop, crypto, tokenized commodities, and digital access to US equities are the hedges of choice for now.

Chart of the Day

Data on TradingView shows the DXY is down by nearly 10% year-to-date (YTD), from the January 13 intra-day high of $109.87 to $99.04 as of this writing.

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