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Gold falls from US$3,500, yield curve flattens: What’s next for commodities, Bitcoin and bonds?

Gold falls from US$3,500, yield curve flattens: What’s next for commodities, Bitcoin and bonds?

Treasury Secretary Scott Bessent’s comments on an expected de-escalation in the US-China tariff standoff, coupled with President Donald Trump’s confirmation that he will not seek to remove Federal Reserve Chair Jerome Powell, have injected a dose of stability into markets reeling from recent turbulence.

Meanwhile, equity markets, particularly in the US, Hong Kong, and Japan, have rallied on hopes of trade resolutions, with standout performances from companies like Tesla. In the foreign exchange markets, the US dollar has staged a rebound, while commodities like gold have pulled back from record highs, and the fixed-income market shows signs of a flattening yield curve.

These developments, set against the International Monetary Fund’s (IMF) warnings of slowing global growth due to US tariffs, paint a picture of an interconnected world navigating uncertainty with cautious hope. Below, I offer my perspective on these macroeconomic, equity, currency, commodity, and fixed-income trends, grounded in the latest data and market signals.

As articulated by Bessent, the prospect of de-escalating US-China trade tensions is a pivotal development that could reshape global markets. Bessent’s assertion that the current tariff standoff—marked by US tariffs on Chinese goods at 145 per cent and China’s retaliatory duties at 125 per cent—is “unsustainable” reflects a pragmatic recognition of the economic toll on both nations. His comments at a closed-door JPMorgan Chase investor summit sparked a 2.5 per cent surge in the S&P 500, signalling market relief at the possibility of reduced trade frictions.

However, skepticism from sources like Fox Business Network’s Charles Gasparino, who suggested Bessent’s optimism may be overstated, underscores the challenges ahead. As Bessent noted, negotiations with China are likely to be a “slog,” with no formal talks yet underway. The US-China trade war has already disrupted global supply chains, fuelled inflation, and contributed to the IMF’s downward revision of global growth to 2.8 per cent for 2024 and US growth to 1.8 per cent for 2025.

A de-escalation could alleviate some of these pressures, but the path forward is complex. China’s vow to “fight until the end” and its recent 84 per cent tariffs on US goods suggest a hardline stance, though Bessent argues China holds a “losing hand” due to its export-heavy reliance on the US market.

I am cautiously optimistic: while both sides have incentives to negotiate—China to protect its export-driven economy and the US to curb inflation and market volatility—the entrenched positions and domestic political pressures on both leaders could delay meaningful progress. As noted by Politico, the White House’s reported progress on trade deals with Japan and India offers a potential blueprint for bilateral resolutions that could ease global trade tensions if applied to China.

Trump’s decision to retain Federal Reserve Chair Jerome Powell is a stabilising force for markets, particularly after months of public criticism from the president. Trump’s earlier calls for Powell to cut interest rates aggressively, including a social media post demanding, “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS,” had raised fears of political interference in monetary policy.

His confirmation that he has “no intention of firing” Powell, reported by Reuters, has calmed investor concerns about central bank independence, a cornerstone of US economic stability. Powell’s tenure has been marked by a cautious approach to inflation, which recently fell to 2.4 per cent in March 2025, below expectations of 2.6 per cent. This data, combined with Trump’s softened rhetoric, suggests the Federal Reserve can continue its data-driven approach without the spectre of political upheaval.

However, the IMF’s warning that US tariffs could reignite inflationary pressures complicates the Fed’s path. My take is that Powell’s retention is a net positive for markets, as it preserves institutional continuity and reduces the risk of abrupt policy shifts. Yet, Trump’s ongoing pressure for lower rates could create friction, especially if tariff-induced inflation forces the Fed to maintain or raise rates, potentially clashing with the administration’s growth agenda.

The US has seen a robust rebound in the equity markets, driven by optimism over trade negotiations and Bessent’s comments. The S&P 500’s 2.5 per cent climb, the Nasdaq 100’s 2.6 per cent rise, and the Dow’s 1,000-point gain reflect a market eager for positive signals amid recent volatility. The Cboe VIX Index, a measure of market fear, remains elevated at 31, indicating lingering uncertainty, but the rally suggests investors are betting on a softer US trade stance.

Tesla’s five per cent stock surge, fueled by renewed confidence in CEO Elon Musk’s focus on the company, is a standout. As a business leader and a vocal supporter of Trump’s policies, Musk’s influence has amplified Tesla’s market narrative, particularly as tariffs on Chinese electric vehicles could bolster domestic producers. In Hong Kong, the Hang Seng Index’s 0.8 per cent rise to 21,562, supported by China’s “national team” and retail investors, reflects resilience despite tariff pressures.

Japan’s Nikkei 225 and Topix indices, up over two per cent have been buoyed by Wall Street’s rebound and signals of easing US-China tensions and Japan’s private sector growth. In my opinion, these equity gains are fragile, hinging on the success of trade negotiations.

The IMF’s downgraded growth forecasts for the US, Mexico, China, and the Eurozone serve as a reminder that tariffs have already inflicted economic damage, and any misstep in diplomacy could reverse these gains. Investors should remain vigilant, as the market’s optimism may outpace the reality of protracted trade talks.

The foreign exchange market has seen a notable rebound in the US dollar, with the DXY index nearing 99.5, while the euro has slipped below 1.14. This dollar strength is likely driven by renewed confidence in US economic stability following Trump’s Powell decision and Bessent’s de-escalation comments. The dollar’s earlier 5.8 per cent decline in 2025, as reported by Reuters, reflected fears that tariffs would undermine US growth. Still, the rally suggests markets are reassessing the US as a relative safe haven.

The euro’s weakness, meanwhile, stems from the Eurozone’s exposure to US tariffs and internal divisions over retaliation strategies, with countries like France advocating for aggressive countermeasures and others, like Ireland, favouring restraint. The dollar’s rebound is temporary, as tariff-related uncertainties and global growth concerns could cap its upside. The euro’s decline may persist if the European Union fails to present a unified front, but a successful negotiation with the US could stabilise the currency.

In commodities, gold’s retreat from a record high of US$3,500, as reported by Reuters, reflects a shift away from safe-haven assets as trade tensions ease. Gold’s 1.5 per cent decline on April 22, 2025, aligns with the equity market’s rally and the dollar’s strength, though its earlier surge to US$3,167.50 amid tariff fears underscores its role as a hedge against uncertainty.

Canada’s industrial producer prices, up 0.5 per cent in March 2025, driven by non-ferrous metals and wood products, highlight commodity-specific dynamics, though falling energy prices, particularly diesel, signal demand concerns. Gold’s pullback is a healthy correction, but its long-term trajectory remains upward given persistent geopolitical risks and inflationary pressures from tariffs. Investors should monitor commodity trends closely, as they offer insights into global demand and trade dynamics.

The fixed-income market’s flattening yield curve, particularly around the stable 5-year sector, is a critical signal of market expectations. The 10-year Treasury yield’s slight easing to 4.3949 per cent, as reported by Reuters, reflects concerns about slower growth, though tariff-induced inflation fears drove earlier spikes to 4.06 per cent.

A flattening yield curve often precedes economic slowdowns, and the IMF’s growth warnings reinforce this narrative. The current yield curve reflects a market grappling with mixed signals: optimism about trade de-escalation versus fears of tariff-driven inflation and recession. Fixed-income investors should remain cautious, as the Fed’s next moves will hinge on inflation data and trade outcomes.

Cryptocurrencies, meanwhile, have mirrored equity market optimism, with Bitcoin hovering around US$92,800 after a 9.75 per cent rally, eyeing a US$95,000 target. Ethereum’s 11.19 per cent surge to US$1,780 and Ripple’s recovery suggest a broader risk-on sentiment.

The Relative Strength Index (RSI) for both Bitcoin (65) and Ethereum (54) indicates bullish momentum, but potential support levels at US$85,000 for Bitcoin and US$1,700 for Ethereum warrant caution. I think crypto’s rally is tied to broader market dynamics, particularly the dollar’s movements and trade optimism, but its volatility demands careful risk management.

In conclusion, the global economy stands at a crossroads, with Bessent’s de-escalation hopes and Trump’s Powell decision offering a reprieve from recent turmoil. Equity markets, currencies, commodities, and fixed-income trends reflect a delicate balance of optimism and caution. While markets have rallied on positive signals, the IMF’s growth warnings and the complexity of US-China negotiations suggest that volatility will persist.

My outlook is guarded optimism: progress on trade and monetary policy stability could pave the way for recovery, but investors must brace for bumps along the road. The interplay of these factors will shape the economic narrative for the remainder of 2025, and staying informed will be key to navigating this dynamic landscape.

 

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

Gold is winning bonds, stocks and maybe Bitcoin: What to invest?

Gold is winning bonds, stocks and maybe Bitcoin: What to invest?

The global financial markets are grappling with a sharp retreat in risk sentiment, driven by escalating tensions between the US administration and the Federal Reserve, alongside uncertainties surrounding trade policies and tariffs. President Donald Trump’s latest social media salvo, urging Federal Reserve Chairman Jerome Powell to slash interest rates due to “virtually no inflation,” has reignited concerns about the central bank’s independence.

Trump’s pointed criticism, accusing Powell of being “too late” except during the election period, has rattled investors, leading to a broad sell-off in US assets on Monday. The S&P 500 plummeted 2.4 per cent, with the so-called Magnificent Seven—comprising tech giants like Apple, Microsoft, and Nvidia—underperforming the broader index with a 3.2 per cent decline.

Meanwhile, the US Treasury yield curve steepened, with front-end yields dipping and long-end yields climbing, reflecting shifting expectations about monetary policy and economic growth. The US Dollar Index slid 0.9 per cent to 98.38, its lowest in three years, while commodities displayed mixed responses: Brent crude fell 2.5 per cent amid risk-off sentiment, and gold surged 2.9 per cent to a record high above US$3,400 per ounce as investors sought safe-haven assets.

In Asia, China’s commerce ministry issued a stern warning against nations striking trade deals with the US at its expense, promising “resolute and reciprocal” countermeasures, further clouding the global trade outlook. Against this backdrop, Bitcoin’s remarkable surge past US$87,700 has captured attention, fuelled by a weakening dollar, speculation around US Treasury buybacks, and growing institutional interest. As markets navigate these turbulent waters, the interplay of macroeconomic forces, geopolitical tensions, and cryptocurrency dynamics is shaping a complex landscape for investors.

The friction between the White House and the Federal Reserve is a central driver of the current market unease. Trump’s public demands for lower interest rates, coupled with his pointed attacks on Powell, have raised alarms about potential political interference in monetary policy. The Federal Reserve’s independence is a cornerstone of its credibility, allowing it to make data-driven decisions to balance inflation and growth without succumbing to short-term political pressures.

However, Trump’s rhetoric, including threats to influence or even replace Powell, has sparked fears that this independence could be eroded. Such concerns are not merely academic; they have tangible market implications. Investors rely on the Fed’s predictability and autonomy to anchor expectations about interest rates and economic stability. Any perceived threat to this framework can trigger volatility, as seen in Monday’s sharp declines across US equity markets.

The S&P 500’s 2.4 per cent drop reflects a broader reassessment of risk, with the Magnificent Seven’s steeper 3.2 per cent decline signalling particular vulnerability in high-valuation tech stocks, which have been market darlings in recent years. These companies, heavily weighted in major indices, are sensitive to shifts in interest rate expectations and economic uncertainty, both of which are now amplified by the Fed-White House clash.

The US Treasuries market provides further insight into investor sentiment. The yield curve’s steepening—characterised by a 3.6 basis point drop in the 2-year yield to 3.762 per cent and an 8.6 basis point rise in the 10-year yield to 4.410 per cent—suggests a divergence in expectations for short-term and long-term economic conditions.

The decline in front-end yields indicates that some investors anticipate the Fed may resist immediate rate cuts, possibly due to inflationary pressures from tariffs or other policy shifts. Conversely, the uptick in long-end yields reflects concerns about sustained economic growth and potential inflation, particularly if trade disruptions intensify. This steepening curve is a classic signal of market unease, as it implies that investors are demanding higher compensation for holding longer-dated debt amid uncertainty.

The US Dollar Index’s slide to a three-year low of 98.38 underscores the broader retreat from US assets, as a weaker dollar often accompanies diminished confidence in US economic leadership or policy coherence. This dynamic has also bolstered gold’s appeal, with its 2.9 per cent surge to above US$3,400 per ounce reflecting a flight to safety amid geopolitical and economic turbulence.

Commodities markets are equally telling. Brent crude’s 2.5 per cent decline to US$66.26 per barrel highlights the risk-off sentiment gripping investors, as fears of a global economic slowdown—potentially exacerbated by trade wars—dampen demand expectations for oil. China’s commerce ministry’s vow to counter any trade deals that disadvantage Beijing has heightened these concerns, signalling that the US-China trade rift could deepen.

The ministry’s statement, promising “resolute and reciprocal” measures, suggests that retaliatory tariffs or other trade barriers are on the horizon, which could further disrupt global supply chains and economic growth. Asian equity indices, which initially gained but later reversed course, reflect the region’s sensitivity to these developments, given China’s pivotal role in global trade. The interplay of these factors underscores the interconnectedness of global markets, where US policy decisions reverberate far beyond its borders.

Amid this macroeconomic turmoil, Bitcoin’s meteoric rise stands out as a counterpoint, driven by a confluence of factors that highlight its growing role as an alternative asset. The cryptocurrency briefly surpassed US$87,700, buoyed by a weakening US dollar and speculation about US Treasury buybacks. Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, has framed these buybacks as a potential “bazooka” for Bitcoin’s price, arguing that they could inject significant liquidity into financial markets.

By repurchasing its own debt, the Treasury could effectively ease monetary conditions, even if the Fed maintains its current stance on interest rates. This liquidity influx could amplify demand for risk assets like Bitcoin, which thrives in environments of monetary expansion. Hayes’ prediction that this may be the “last chance” to buy Bitcoin below US$100,000 reflects his bullish outlook, grounded in the belief that structural shifts in monetary policy and market dynamics are aligning in Bitcoin’s favor.

Adding to this narrative is a new analysis linking Bitcoin’s price movements to the global M2 money supply, a broad measure of money circulating in the economy. This predictive offset model suggests that Bitcoin’s trajectory closely tracks global liquidity trends, with historical patterns indicating a potential climb above US$100,000 if current conditions persist.

Such analyses resonate with investors who view Bitcoin as a hedge against currency debasement and inflationary policies, particularly in an era of unprecedented government spending and debt issuance. The weakening US dollar, down 0.9 per cent on Monday, further enhances Bitcoin’s appeal, as a depreciating currency often drives demand for assets perceived as stores of value. Gold’s concurrent surge underscores this trend, as both assets benefit from safe-haven flows amid uncertainty.

Institutional adoption is another critical driver of Bitcoin’s rally. Fidelity and Bitwise’s recent US$133 million investment in Bitcoin signals robust confidence from major players, whose involvement often lends legitimacy and liquidity to the cryptocurrency market. Similarly, BlackRock’s Bitcoin ETF reported a US$41.6 million daily inflow, reflecting heightened investor interest. These inflows are significant not only for their size but also for their symbolic weight, as institutional participation tends to stabilise and amplify Bitcoin’s price movements.

The growing acceptance of Bitcoin ETFs, as evidenced by data from platforms like farside.co.uk, suggests that traditional investors are increasingly comfortable allocating capital to cryptocurrencies, viewing them as a diversification tool in volatile markets. This trend could have lasting implications, potentially smoothing Bitcoin’s historically wild price swings while attracting a broader investor base.

From my angle, the current market environment is a crucible of competing forces, where traditional assets are buffeted by policy uncertainties, and alternative assets like Bitcoin are seizing the moment. The tensions between the US administration and the Federal Reserve are a stark reminder of the delicate balance between political ambition and economic stability.

Trump’s push for lower interest rates, while politically expedient, risks undermining the Fed’s credibility and could lead to longer-term inflationary pressures, particularly if tariffs disrupt global trade. The market’s reaction—evident in the S&P 500’s decline, the dollar’s weakness, and gold’s surge—reflects a rational response to these risks, as investors recalibrate their expectations for growth and stability.

Bitcoin’s ascent, meanwhile, is both a symptom and a signal of deeper shifts. Its correlation with global liquidity trends, as highlighted by the M2 analysis, suggests that it is increasingly integrated into the broader financial system, no longer a fringe asset but a barometer of monetary conditions.

The involvement of institutions like Fidelity, Bitwise, and BlackRock reinforces this view, pointing to a future where cryptocurrencies play a central role in portfolio construction. However, Bitcoin’s volatility remains a double-edged sword; while it offers outsized returns in bullish phases, its susceptibility to sharp corrections warrants caution.

Looking ahead, the interplay of US monetary policy, trade dynamics, and cryptocurrency adoption will shape the investment landscape. Investors must navigate a world where traditional safe havens like Treasuries are under pressure, and alternative assets are gaining prominence.

The US equity markets’ implied higher open today suggests a potential rebound, but sustained recovery will hinge on clarity around Fed policy and trade negotiations. For now, the markets remain on edge, caught between the promise of innovation and the perils of uncertainty.

 

Source: https://e27.co/gold-is-winning-bonds-stocks-and-maybe-bitcoin-what-to-invest-20250422/

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

Global economic shake-up: Bitcoin hits US$90K, German bonds slide

Global economic shake-up: Bitcoin hits US$90K, German bonds slide

Same thing. I’ve been closely following the whirlwind of events that unfolded on Wednesday, March 6, 2025.

The global risk sentiment has undeniably taken a turn for the better, and the epicentre of this shift is Europe—specifically Germany—where an audacious fiscal proposal has sent shockwaves through the markets. German bunds, typically seen as the bedrock of stability in European fixed-income markets, are on track for their worst sell-off since 1990.

This isn’t just a blip; it’s a seismic event driven by Chancellor Friedrich Merz’s bold pledge to channel hundreds of billions of euros into defense and infrastructure, with a “whatever it takes” stance that echoes Mario Draghi’s famous 2012 vow to save the euro. The sheer scale of this proposal has caught market participants off guard, and the upside surprise has fueled a mix of optimism and unease.

Let’s unpack what’s happening in Europe first. The German bund sell-off reflects a dramatic repricing of risk. Yields on 10-year bunds spiked to 2.69 per cent, a level that signals investors are demanding higher returns to hold German debt amid this unprecedented fiscal expansion. The debt brake—Germany’s constitutional limit on borrowing—seems to have been tossed out the window, a move that’s both a departure from Berlin’s long-standing fiscal prudence and a gamble on future growth.

Posts on X suggest bond vigilantes, those hawkish investors who punish profligate governments with higher yields, are already circling, sensing fragility rather than strength in this shift. Yet, the equity markets are telling a different story. The MSCI Europe index climbed 0.8 per cent, buoyed by the prospect of massive government spending lifting economic activity.

The euro, too, has flexed its muscles, with EUR/USD soaring to a high of 1.0796 before settling at 1.0790—a robust 1.56 per cent gain. This currency surge reflects confidence in Europe’s economic prospects, at least for now, though the spectre of inflation and debt sustainability looms large.

Across the Atlantic, the US markets are enjoying a reprieve of their own, thanks to President Trump’s decision to delay automotive tariffs on Canada and Mexico by a month. This move, coupled with hints of exemptions for certain agricultural products, has dialed back fears of an all-out trade war that had been simmering since Trump’s re-election.

It’s a pragmatic step—autos and agriculture are deeply integrated across North America, and tariffs would’ve hit US consumers as much as they’d hurt exporters in Canada and Mexico. European carmakers, already reeling from earlier tariff threats, saw their shares stabilise, though the damage from Tuesday’s sell-off lingers. On the data front, the ISM Services Index came in stronger than expected, with a notable uptick in employment growth.

In my opinion, this is a reassuring signal that the US economy isn’t teetering on the edge of recession, though all eyes are now on Friday’s payrolls report for confirmation. The MSCI US index rose 1.1 per cent, with the Materials sector leading the charge at 2.8 per cent, likely reflecting optimism about infrastructure spending and industrial demand.

Bond markets in the US are also stirring. The 10-year Treasury yield climbed 7 basis points to 4.28 per cent, while the 2-year yield ticked up nearly 5 basis points to 4.00 per cent. This steepening yield curve suggests investors are betting on stronger growth and, potentially, stickier inflation down the road.

Commodities, meanwhile, are a mixed bag. Gold eked out a 0.1 per cent gain, propped up by a softer dollar, but Brent crude slid 2.5 per cent for a third straight session. OPEC+’s plan to ramp up output in April is weighing on oil prices, despite the improving risk sentiment elsewhere. It’s a reminder that not every corner of the market is riding the same wave of optimism.

Turning to Asia, China’s National People’s Congress (NPC) has set an ambitious 5 per cent growth target for 2025, a number that’s raised eyebrows and sparked hopes of more stimulus. The Hang Seng Index in Hong Kong surged 2.8 per cent on Wednesday and looks poised for further gains today, Thursday, March 6.

Asian equity indices are mostly in the green, reflecting a broader appetite for risk. China’s policymakers seem determined to turn the tide after years of economic headwinds, and markets are lapping it up—for now. Whether Beijing can deliver remains an open question, but the mood is unmistakably upbeat. US equity index futures, however, are pointing to a softer open, suggesting some profit-taking or caution after Wednesday’s rally.

Then there’s the crypto saga, which is grabbing headlines of its own. Bitcoin staged a remarkable 8 per cent surge, reclaiming the US$90,000 level after dipping below US$80,000 just five days ago. This rollercoaster ride is fuelled by speculation around Trump’s rumoured US crypto reserve plan—a bold idea that’s got the market buzzing. Technical indicators like the Directional Movement Index (DMI) and Ichimoku Cloud are flashing bullish signals, hinting that buyers are firmly in the driver’s seat.

The US$100,000 mark is tantalisingly close, but volatility is Bitcoin’s middle name, and the upcoming White House Crypto Summit could either propel it higher or spark a pullback. Speaking of the summit, Cardano’s Charles Hoskinson found himself snubbed from the invite list, though he’s brushing it off, claiming he’s still a behind-the-scenes player in shaping US crypto policy.

Michael Saylor, meanwhile, is doubling down on Bitcoin as the “only neutral asset” for a US reserve, dismissing XRP as a mere digital token. Ethereum, too, is on the mend, climbing from its US$2,000 support zone and eyeing a break above US$2,350. A rising channel on the hourly chart suggests momentum is building, but resistance at US$2,275 and $2,350 will test its mettle.

So, what’s my take on all this? I’m struck by the sheer pace of these developments. Europe’s fiscal gambit is a game-changer—Germany’s shift from fiscal hawk to big spender could jolt the continent out of its economic doldrums, but it’s a high-stakes bet. The bund sell-off is a warning shot; if yields keep climbing, borrowing costs could choke off the very growth Merz is chasing.

Yet, the equity rally and euro’s strength suggest markets are willing to give it a chance. In the US, Trump’s tariff delay is a savvy move—it buys time and cools trade tensions, though it’s hardly a resolution. The economy looks resilient, but the payrolls report will be the real tell. Asia’s optimism hinges on China’s ability to follow through, and crypto’s wild ride is a microcosm of the broader risk-on mood.

If I had to pick a standout, it’s Germany’s bold pivot. It’s shaking up Europe in a way we haven’t seen in decades, and the ripple effects—higher yields, a stronger euro, buoyant stocks—could redefine the region’s role in the global economy. But risks abound: inflation, debt overload, and geopolitical uncertainty could derail this fragile recovery. For now, though, the world’s investors are riding the wave, and it’s one heck of a story to watch unfold.

 

 

Source: https://e27.co/global-economic-shake-up-bitcoin-hits-us90k-german-bonds-slide-20250306/

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