Tag Archives: ai

What’s shaping the markets right now: AI hype, Bitcoin’s calm, and the Fed’s next move

What’s shaping the markets right now: AI hype, Bitcoin’s calm, and the Fed’s next move

Global markets are currently riding a wave of optimism, with risk sentiment surging as investors appear to shrug off a host of economic and political uncertainties. This buoyant mood stems mainly from two key drivers: the anticipation of earlier-than-expected Federal Reserve rate cuts and growing excitement about the potential for artificial intelligence to fuel economic growth.

Beneath this surface of confidence, there are substantial risks that could easily unsettle this delicate balance. From escalating trade tensions to shifting monetary policies and fluctuating commodity prices, the global financial landscape is anything but stable. Adding to the complexity is the cryptocurrency market, where Bitcoin’s price volatility has recently hit its lowest point in over a year, offering a curious contrast to the broader market dynamics.

Let’s begin with the economic and political risks that, despite being overlooked by many market participants, remain critical to understanding the current sentiment. One of the most prominent issues is the resurgence of trade tensions, highlighted by former President Donald Trump’s recent threat to raise tariffs on Indian goods substantially. His reasoning ties to India’s continued purchases of Russian oil, a move that has irked US policymakers amid geopolitical strains.

This isn’t just a bilateral spat between the US and India. It has the potential to ripple across global trade networks, disrupting supply chains and increasing costs for businesses worldwide. India plays a vital role in the global economy, particularly in technology and manufacturing, so any escalation in tariffs could dampen corporate earnings and slow economic momentum. This is a reminder that geopolitical posturing can quickly translate into economic consequences, and investors ignoring this risk might find themselves caught off guard if tensions boil over.

Turning to monetary policy, the Federal Reserve’s next moves are shaping up to be a linchpin for market sentiment. San Francisco Fed President Mary Daly recently indicated that the Fed might need to implement more than two rate cuts this year if the labour market weakens further and inflationary pressures from tariffs fail to materialise.

This comment caught my attention because it suggests a willingness to adopt a more supportive stance, which could bolster markets by lowering borrowing costs and encouraging investment. However, it also underscores the Fed’s challenging position. Cutting rates too aggressively risks reigniting inflation, especially if trade disruptions push up prices. On the other hand, holding back could stifle growth if the labor market deteriorates. Fed is walking a tightrope, and its decisions will likely amplify market swings in the coming months. For investors, this means staying attuned to economic data like employment figures and inflation readings, which will heavily influence the Fed’s path.

AI hype changes things

Meanwhile, the optimism around AI-driven growth is injecting a dose of excitement into the markets, and I can see why. Advances in artificial intelligence are no longer just theoretical. They’re starting to reshape industries. Companies are pouring resources into AI, betting that it will streamline operations, boost productivity, and open new revenue channels.

This enthusiasm is most evident in the tech sector, which has powered a recent rebound in US stock markets. The S&P 500 climbed 1.5 per cent, the NASDAQ jumped 2.0 per cent, and the Dow Jones rose 1.3 per cent, reflecting a clear risk-on attitude. I find this rally encouraging because it signals confidence in innovation as a growth driver. I also think it’s worth tempering expectations.

AI’s economic impact is still unfolding, and while the long-term potential is immense, short-term gains might be overstated. If other risks like trade disputes or policy missteps intensify, the AI narrative could lose its luster, leaving tech-heavy indices vulnerable.

The bond market offers another lens into investor sentiment, and here I see a mix of caution and opportunism. US Treasuries consolidated their gains on Monday after a strong showing the previous Friday, when renewed expectations of Fed rate cuts drove demand. The 10-year Treasury yield dropped 2.4 basis points to 4.192 per cent, inching close to its support level at 4.185 per cent.

Lower yields typically suggest investors are seeking safety, which seems at odds with the equity market’s rally. To me, this divergence hints at underlying unease; some investors are hedging their bets even as others pile into stocks. The US Dollar Index fell 0.4 per cent in response to these lower yields, while gold edged up 0.3 per cent to US$3,373 per ounce. Gold’s modest gain reinforces my view that safe-haven assets still hold appeal, despite the risk-on vibe dominating headlines. It’s a subtle but telling sign that not everyone is fully convinced by the current optimism.

The case with commodities

Commodities, too, are part of this intricate puzzle. Brent crude oil slipped 1.3 per cent to US$68 per barrel after OPEC+ agreed to increase production by over 500,000 barrels per day starting in September.

This move surprised me a bit, given the group’s usual caution, but it could ease inflationary pressures by keeping oil prices in check. For consumers and businesses, cheaper oil is a welcome relief, potentially supporting spending and investment. However, it also raises questions about global demand. If OPEC+ feels confident boosting output, does that mean they see economic growth slowing? I lean toward the idea that this is a strategic play to maintain market share, but it’s a development worth watching. Lower oil prices might give central banks like the Fed more room to cut rates without stoking inflation, indirectly supporting the risk sentiment driving markets.

Now, let’s shift gears to Bitcoin, where an intriguing story is unfolding. The cryptocurrency’s price volatility has plummeted to its lowest level in over a year, a stark contrast to its historically wild swings. According to Blockforce Capital, Bitcoin’s annualised 60-day volatility fell to 28.53 per cent on July 30, the lowest since August 28, 2023. Its 30-day volatility hit 25.26 per cent on July 23, the calmest since October 15, 2023. This happened as Bitcoin’s price oscillated between US$105,000 and US$122,750 in July, per Coinbase data from TradingView.

I find this stability fascinating, especially given the broader market turbulence. Part of it stems from regulatory progress, including the passage of three US House bills on crypto and the enactment of regulations in July, with the GENIUS Act signed into law by President Trump. These steps likely reassured investors, reducing uncertainty.

But there’s more to this story. Institutional players are flexing their muscles, and I see this as a game-changer. Strategy, formerly known as MicroStrategy, acquired US$2.46 billion worth of Bitcoin between July 28 and August 3, increasing its holdings to 628,791 tokens, valued at over US$71 billion. That’s a massive bet, averaging $117,526 per token, and it shows how Michael Saylor has turned his company into a Bitcoin juggernaut.

Similarly, Japan’s Metaplanet grabbed 463 BTC for US$53 million, pushing its stash to 17,595 BTC, worth about $2.02 billion. These firms are treating Bitcoin like a treasury asset, buying even as retail enthusiasm wanes. I think this institutional muscle could steady Bitcoin through choppy waters, though it also ties the crypto’s fate closer to corporate strategies.

My view? Enjoy the ride, but keep your eyes wide open. The next few months could be a wild one.

 

Source: https://e27.co/whats-shaping-the-markets-right-now-ai-hype-bitcoins-calm-and-the-feds-next-move-20250805/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

BingX Webinar- Future Proofing the Digital Economy: AI and Web3 Synergies

BingX Webinar- Future Proofing the Digital Economy: AI and Web3 Synergies

Discover how artificial intelligence and Web3 technologies are transforming the digital landscape, driving innovation, and generating new opportunities for growth and decentralization.

In a recent webinar hosted by Will, experts Vivian (Chief Product Officer at BingX), Kanging Liu (AI research scientist), Anndy Lian (author and investor), and Gareth Jenkinson (moderator from Cointelegraph) shared their insights on this transformative intersection.

They discuss real-world use cases, future trends, and strategies for staying ahead in the evolving digital economy.

02:02 Panel Self-Introductions
05:06 Redefining Crypto Through Intelligence
15:18 Simplifying Complexity with AI Systems
23:17 The Power of Web4
28:59 What are the most significant recent advancements in AI, and how are they poised to reshape business and company operations?
35:09 Where can AI deliver the first “easy wins” for digital economy in the next 12 months?
40:10 What has surprised you most about AI’s take-up compared with blockchain and DeFi’s early days?
43:05 How might AI tools make it simpler for a complete crypto beginner to get started?
44:17 In Web3 today, which slice feels most overdue for an AI-powered shake-up, and why?
54:10 Beyond trading, which adjacent Web3 vertical stands to benefit most from an exchange-led AI platform, and what collaboration models could unlock that value?
59:57 Audience Q&A

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Is the EU Leading the Charge or Losing the Race in Regulating AI?

Is the EU Leading the Charge or Losing the Race in Regulating AI?

As I sit down to reflect on the European Union’s emerging AI regulatory framework, I can’t help but feel a mix of admiration and unease. The EU is charting a bold course, aiming to classify AI tools based on their potential risks and impose stricter rules on high-risk systems like self-driving cars and medical technologies, while giving more leeway to lower-risk applications like internal chatbots.

As someone who has spent years covering the intersection of technology and policy, I’ve seen the transformative power of innovation and the chaos that can ensue when it’s left unchecked. The EU’s approach feels like a necessary step toward ensuring AI remains trustworthy and aligned with human values, but I worry it might come at the cost of stifling the very creativity it seeks to protect. This isn’t just a European issue—it’s a global one, and the world is watching closely.

The EU’s AI Act, which took effect in August 2024, is a groundbreaking piece of legislation, the first of its kind to tackle AI governance on such a comprehensive scale. The European Commission has divided AI systems into four risk categories: unacceptable, high, limited, and minimal. High-risk systems, like those used in healthcare or law enforcement, face rigorous requirements, including mandatory safety checks and detailed documentation. For instance, AI tools in medical devices must meet strict standards to ensure they don’t endanger patients, a move that reflects the EU’s deep commitment to safeguarding fundamental rights, as outlined in the official documentation of the AI Act. On the other hand, lower-risk systems, such as chatbots used within companies, are subject to lighter regulations, allowing businesses to innovate without being bogged down by red tape. It’s a thoughtful, risk-based approach designed to strike a balance between fostering innovation and protecting citizens.

I can’t help but admire the EU’s ambition here. Growing up in a world where technology often seemed to outrun regulation, I’ve seen the consequences of letting innovation run wild—data breaches, biased algorithms, and the erosion of privacy. The EU’s General Data Protection Regulation (GDPR), implemented back in 2018, set a global standard for data privacy, inspiring similar laws in places like Brazil and California. Over 130 countries have adopted data protection laws influenced by the GDPR, proving that the EU has the power to shape global norms. The AI Act could follow in its footsteps, becoming the go-to model for AI regulation worldwide. For companies operating in or targeting the European market, compliance isn’t just a legal checkbox—it’s a strategic necessity. Getting ahead of these rules could save businesses from costly last-minute scrambles and bolster their reputation as ethical innovators.

But there’s a catch, and it’s a big one. Critics worry that the EU’s regulatory zeal could backfire, particularly for smaller companies and startups. The European Commission estimates that compliance costs for high-risk AI systems could amount to €400,000 per system, depending on the complexity and scale. For small and medium-sized enterprises (SMEs), which make up 99% of all businesses in the EU and employ nearly 100 million people, these costs could be dealbreakers. I’ve spoken to entrepreneurs who fear they’ll be priced out of the European market or forced to abandon their AI projects altogether. If regulations push these smaller players away, Europe risks losing its competitive edge in a global AI race that’s heating up fast.

And then there’s the broader global context. While the EU is busy crafting its regulatory masterpiece, other major players like the United States and China are taking very different paths. The U.S., under President Donald Trump, has embraced a more hands-off approach, relying on voluntary guidelines and industry self-regulation. Meanwhile, China is pouring resources into AI development, with companies like DeepSeek emerging as global leaders. Analysts estimate that AI technology could bring $600 billion annually for China’s economy, fuelled by government support and a regulatory environment that’s far less restrictive than the EU’s. The third Artificial Intelligence Action Summit in Paris, held in February, highlighted these stark contrasts, with world leaders and tech executives grappling with how to regulate AI without losing ground to less regulated markets. China’s DeepSeek app, for example, which can self-train on coding and math problems, has only intensified these concerns, raising questions about whether the EU’s approach might leave it playing catch-up.

The EU’s AI Act also comes at a time when the AI landscape is evolving rapidly, with trends like AI-driven search snippets and workplace automation reshaping industries. Take Google’s AI Overviews, for example. A 2024 analysis by Seer found that these snippets, which provide answers directly on the search page, are reducing click-through rates for many businesses. While this is great for users who get quick answers, it’s a headache for companies that rely on organic traffic. On the workplace front, McKinsey’s 2024 report, “Superagency in the Workplace,” argues that AI can boost productivity and creativity but only if companies invest in training employees to collaborate with these tools. The report found that organizations that prioritize people-centric AI strategies—offering practical training, clear communication, and ethical guidelines—saw productivity gains. These insights suggest that regulation alone isn’t enough; success depends on how well organizations and societies adapt to AI’s potential.

Yet, for all the challenges, there’s a compelling case to be made for the EU’s approach. Proponents argue that well-crafted regulations can build trust and encourage responsible development. The AI Act’s focus on transparency, such as requiring developers to disclose details about their training data, resonates with growing public demand for accountability. 68% of Europeans want government restrictions on AI, citing concerns about privacy, bias, and job displacement. By addressing these issues head-on, the EU could position itself as a global leader in ethical AI, attracting businesses and consumers who value trust and safety. And let’s not forget the EU’s track record with the GDPR, which showed that robust regulation can coexist with innovation if it’s done right—thoughtfully, collaboratively, and with a clear eye on the bigger picture, as evidenced by its widespread global influence.

So, where does that leave us? As I see it, the EU’s AI regulatory framework is a bold and necessary experiment, one that reflects the bloc’s commitment to putting people first in an increasingly tech-driven world. But its success hinges on finding the right balance—encouraging innovation without sacrificing accountability and protecting rights without stifling growth. For businesses, the message is clear: don’t wait to adapt. Staying informed and preparing early could make all the difference, both in terms of compliance and reputation. For the EU, the challenge is even greater: to lead with vision, flexibility, and a willingness to learn from the global AI race. As a journalist, I’m cautiously optimistic, but I’ll be watching closely to see whether this framework becomes the global benchmark it aspires to be—or a cautionary tale of good intentions gone awry.

 

 

Source: https://intpolicydigest.org/is-the-eu-leading-the-charge-or-losing-the-race-in-regulating-ai/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j