The Trump effect: Steel tariffs, Bitcoin surge, and the future of crypto in Japan and beyond

The Trump effect: Steel tariffs, Bitcoin surge, and the future of crypto in Japan and beyond

Global financial markets are navigating a complex landscape shaped by geopolitical tensions, domestic policy shifts, and the ever-evolving dynamics of technological innovation. President Donald Trump’s recent pledge to impose tariffs on all steel and aluminium imports has sent ripples through global markets, exacerbating already jittery sentiments about trade tensions.

This policy announcement, with broader economic indicators and the rise of cryptocurrency-related developments, presents a multifaceted scenario that demands careful analysis. As a journalist committed to rigorous research and factual reporting, I aim to unpack these developments, offering a comprehensive view of their implications while critically examining the narratives surrounding them.

President Trump’s announcement of a 25 per cent tariff on steel and aluminium imports has undoubtedly heightened global risk sentiment. This move, which Trump did not specify regarding its effective date, has added a layer of uncertainty to an already tense economic environment. Commodity currencies such as the Australian and Canadian dollars have felt the immediate impact, depreciating as markets react to the potential for escalated trade conflicts.

Similarly, Asian equities have experienced declines, reflecting broader concerns about the ripple effects of these tariffs on global supply chains and economic stability. The timing of this announcement, just before Federal Reserve Chair Jerome Powell’s semiannual congressional testimony, further amplifies its significance as investors and policymakers alike scrutinise the potential monetary policy responses to these trade developments.

In the United States, financial markets have responded with caution and resilience. The MSCI US index edged lower by 0.9 per cent, with the Energy sector outperforming despite broader market declines. This resilience in the Energy sector can be attributed to relatively stable oil prices, with Brent crude hovering around US$75 per barrel, even as markets weigh the implications of the new tariffs.

Meanwhile, US Treasury yields have risen, with the 10-year yield increasing by 6.1 basis points to 4.49 per cent and the two year yield climbing by 7.8 basis points to 4.29 per cent. These movements suggest a market expectation of tighter monetary policy or heightened inflationary pressures, possibly in response to the tariffs. The US Dollar Index has held firm, gaining 0.3 per cent, while gold prices continue their upward momentum, approaching US$2,900 per ounce, as investors seek safe-haven assets amid uncertainty.

Across the Pacific, Asian equities have displayed a mixed performance, with early trading reflecting the cautious sentiment pervasive in global markets. However, US equity index futures suggest a modestly optimistic opening, implying a 0.3 per cent higher start for US stocks. This divergence highlights the nuanced reactions across different markets, shaped by local economic conditions and the varying degrees of exposure to US trade policies.

In Singapore, for instance, DBS Group Holdings Ltd. shares reached a record high, buoyed by the announcement of an investor payout plan. This development underscores the resilience of certain financial institutions in Southeast Asia, even as broader market sentiments remain tentative.

Markets on edge as jobs data, currency shifts, and crypto milestones shape the week

Amid these traditional financial market dynamics, the cryptocurrency space has emerged as a significant focal point, particularly in Asia. The Korea Exchange chairman’s push for the adoption of cryptocurrency exchange-traded funds (ETFs) reflects a growing recognition of digital assets as a potential driver of market growth.

South Korea, a nation known for its technological innovation and significant cryptocurrency adoption, stands at a critical juncture. Embracing crypto ETFs could position the country as a leader in this burgeoning financial sector, potentially attracting substantial foreign investment and fostering innovation. However, this move also carries risks, including regulatory challenges and the inherent volatility of digital assets, which could undermine financial stability if not managed carefully.

The meteoric rise of Metaplanet Inc., a Japanese company that has pivoted from hotel management to Bitcoin investment, exemplifies the transformative potential of cryptocurrencies. Shares of Metaplanet have soared by over 4,000 per cent in the past year, making it the top-performing stock among Japanese equities and one of the highest globally. This extraordinary performance is largely attributed to the ripple effects of President Trump’s pro-crypto agenda, which has fuelled a surge in Bitcoin demand in Japan.

Metaplanet’s strategic shift to adopting Bitcoin as a primary treasury reserve asset, inspired by the playbook of MicroStrategy’s Michael Saylor, has resonated with investors, particularly in a context where traditional financial assets are facing heightened uncertainty. The company’s ambitious plans to acquire 21,000 Bitcoin by 2026, supported by a US$745 million capital raise, further underscore its commitment to this strategy, positioning it as a potential leader in Asia’s cryptocurrency landscape.

However, this rapid ascent is not without its complexities. The volatility of Bitcoin, which recently hit a record high of US$109,241 before partially retracing, poses significant risks for companies like Metaplanet. Moreover, the high capital gains taxes on direct Bitcoin purchases in Japan—up to 55 per cent—make investing in stock proxies like Metaplanet an attractive alternative for small-scale and first-time buyers, particularly through programs like the Nippon Individual Savings Account. This tax structure, combined with the broader market dynamics influenced by Trump’s trade policies, creates a unique environment where investors navigate traditional and digital asset markets with heightened caution.

President Trump’s apparent obsession with cryptocurrencies, evidenced by his administration’s pro-crypto stance, has broader implications for global financial markets. Some analysts argue that Trump’s pledge to overhaul US financial regulations could present opportunities for the UK to lead in the crypto space in the United Kingdom. With its robust financial infrastructure and history of regulatory innovation, the UK is well-positioned to capitalise on any shifts in US policy that might create regulatory gaps or opportunities.

However, this optimism must be tempered by critically examining the challenges involved, including the need for robust regulatory frameworks to protect investors and ensure market stability. The UK’s ability to lead in this space will depend on its capacity to balance innovation with prudent oversight, a task made more complex by the global nature of cryptocurrency markets.

The new norm: Stabilising global risk sentiment in a volatile market

From my perspective, the interplay between traditional financial markets and the cryptocurrency sector underscores a broader shift in the global economic landscape. President Trump’s tariffs on steel and aluminium, while aimed at protecting domestic industries, risk exacerbating global trade tensions and economic uncertainty.

This uncertainty, in turn, drives investors toward alternative assets like gold and Bitcoin, which are perceived as hedges against traditional market volatility. However, the rapid rise of companies like Metaplanet and the push for crypto ETFs in South Korea highlights the transformative potential of digital assets, even as they introduce new risks and regulatory challenges.

Critically examining the establishment narrative, it is essential to recognise that the enthusiasm for cryptocurrencies, particularly in the context of Trump’s policies, is not without its pitfalls. The volatility of digital assets, the potential for regulatory overreach, and the risk of market manipulation are significant concerns that must be addressed.

Moreover, the reliance on Bitcoin as a treasury reserve asset, as seen with Metaplanet, raises questions about long-term sustainability and the broader implications for corporate governance and financial stability. While the allure of high returns is undeniable, the risks associated with such strategies cannot be overlooked.

In conclusion, the current global financial landscape is a tapestry of interconnected developments, from traditional trade policies and market dynamics to the disruptive potential of cryptocurrencies. President Trump’s tariffs on steel and aluminium have heightened global risk sentiment, driving investors toward safe-haven assets and alternative investments like Bitcoin.

Meanwhile, the rise of Metaplanet in Japan and the push for crypto ETFs in South Korea reflect the growing influence of digital assets in shaping economic strategies. As these trends unfold, policymakers, investors, and journalists alike must approach them with a critical eye, balancing optimism with a rigorous assessment of the risks and opportunities they present.

The future of global finance will likely be defined by how effectively we navigate these complexities, ensuring that innovation is harnessed responsibly and sustainably.

 

Source: https://e27.co/the-trump-effect-steel-tariffs-bitcoin-surge-and-the-future-of-crypto-in-japan-and-beyond-20250210/

 

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”.

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DeepSeeking the future: The ripple effect on tech, crypto, and global markets

DeepSeeking the future: The ripple effect on tech, crypto, and global markets

Key points:

  • Global market sentiment: Asian markets followed Wall Street’s sharp decline, with the S&P 500 and Nasdaq 100 dropping due to concerns over AI company valuations.
  • DeepSeek’s disruption: A Chinese AI startup, DeepSeek, introduced a groundbreaking open-source model, raising questions about the future of US tech giants.
  • US policy shifts: President Trump announced tariffs on foreign-produced semiconductors, pharmaceuticals, and metals to encourage domestic manufacturing.
  • Treasury leadership: Scott Bessent was confirmed as Treasury Secretary, signalling potential shifts in US economic policy.
  • Market movements: Treasury yields fell, the US Dollar stabilised, and commodities like gold and oil saw mixed performance.
  • Crypto developments: Eric Trump announced tax exemptions for US-based crypto projects to boost blockchain innovation.
  • Bitcoin and crypto market decline: Bitcoin dropped below $100,000 as DeepSeek’s rise disrupted global markets, including tech and crypto sectors.

Global market sentiment: A shift in confidence

Global markets are facing a wave of uncertainty, with Asian shares retreating after a tough session on Wall Street. The S&P 500 and Nasdaq 100 both took a hit on Monday, driven by growing concerns over the sustainability of US tech company valuations. The trigger? A Chinese AI startup, DeepSeek, unveiled a new open-source AI model that has investors questioning whether the high valuations of US AI companies are justified.

Adding to the unease, many Asian markets, including China and South Korea, were closed on Tuesday for Lunar New Year celebrations, leaving investors with limited opportunities to respond to the unfolding developments. Meanwhile, US equity futures suggested a flat opening, reflecting a cautious mood among traders.

DeepSeek’s disruption: A game-changer for AI

DeepSeek, a Chinese AI startup, has quickly become the centre of attention in the tech world. The company recently launched its open-source language model, R1, which has gained massive popularity in just a week. It’s now the top-rated free app on the Apple App Store in both the US and China, signalling its rapid adoption and appeal.

What makes DeepSeek’s model so disruptive is its accessibility. By offering a cost-effective, open-source alternative, the company has introduced a new level of competition in the AI space. This has raised concerns among investors about the future of US tech giants, particularly those heavily invested in AI. The shift from expensive hardware to more efficient software solutions could accelerate profitability in the AI industry, but it also introduces significant short-term volatility.

US policy shifts: Tariffs and new leadership

In a move to strengthen domestic manufacturing, President Trump announced plans to impose tariffs on foreign-produced semiconductors, pharmaceuticals, and certain metals. The goal is to reduce reliance on imports and encourage companies to produce goods within the US. While this policy could boost domestic industries, it may also lead to higher costs for consumers and potential trade tensions with key partners.

On the leadership front, Scott Bessent was confirmed as the new Treasury Secretary. Known for his support of gradual universal levies, Bessent’s appointment signals a potential shift in US economic policy. His approach aims to address income inequality while maintaining economic growth. However, markets have reacted cautiously, reflecting uncertainty about how his policies will play out in the long term.

Market movements: Mixed reactions across assets

Financial markets have been sending mixed signals amid the ongoing turbulence. The MSCI US index fell by 1.5 per cent, with tech stocks leading the decline at -5.5 per cent. On the other hand, the Financials sector managed to gain 0.9 per cent, offering a rare bright spot. Treasury yields also dropped, with the 10-year yield falling to 4.53 per cent and the two year yield to 4.20 per cent.

Commodities showed varied performance. Gold remained steady above US$2,700 per ounce despite a slight decline, while Brent crude oil fell by 1.8 per cent, nearing US$75 per barrel. The oil market’s movement reflects expectations that OPEC+ will stick to its current supply plan. Meanwhile, the US Dollar Index stabilised, consolidating its recent losses and signalling a period of relative calm after recent volatility.

Crypto developments: A boost for US innovation

The cryptocurrency sector received a significant boost with Eric Trump’s announcement of tax exemptions for US-based crypto projects. This policy is designed to encourage innovation within the United States and position the country as a global leader in blockchain and digital assets. By exempting domestic projects from capital gains tax while imposing a 30 per cent tax on foreign-based projects, the administration aims to attract talent and investment to the US.

The announcement specifically mentioned well-known projects like XRP (Ripple Labs) and HBAR (Hedera Hashgraph Network), signalling strong government support for established players in the crypto space. This move could pave the way for increased investment and innovation, further solidifying the US’s position as a hub for blockchain technology.

Also Read: Breaking barriers: How crypto is disrupting education funding

Bitcoin and crypto market decline: DeepSeek’s ripple effect

DeepSeek’s rise hasn’t just disrupted the tech sector—it’s also sent shockwaves through the cryptocurrency market. Bitcoin, which had been trading above US$100,000, fell below this key level on Monday. The decline was part of a broader market sell-off triggered by concerns over DeepSeek’s impact on global investment trends.

The rapid ascent of DeepSeek has raised questions about the future of AI and its intersection with other industries, including blockchain. As investors reassess their portfolios in light of these developments, the crypto market is likely to remain volatile. However, the long-term potential of blockchain technology remains strong, especially with recent US policy changes creating a more supportive environment for growth.

Conclusion

The global financial landscape is undergoing a period of rapid transformation, driven by technological breakthroughs, policy changes, and shifting market dynamics. DeepSeek’s emergence as a disruptive force in the AI space has highlighted the need for investors to adapt to a rapidly evolving environment. At the same time, US policy changes, including tariffs and crypto tax exemptions, reflect a strategic focus on fostering domestic growth and innovation.

While the short-term outlook is uncertain, these developments underscore the importance of staying informed and flexible. By diversifying investments and keeping an eye on emerging trends, investors can navigate the challenges and opportunities of this transformative era. The rise of DeepSeek and the evolving crypto landscape are reminders that innovation often comes with disruption—but also with immense potential.

 

Source: https://e27.co/deepseeking-the-future-the-ripple-effect-on-tech-crypto-and-global-markets-20250128/

 

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”.

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Crypto a Good Way to Make Money for the Future? – Anndy Lian Explains on The Moneyverse Show

Crypto a Good Way to Make Money for the Future? – Anndy Lian Explains on The Moneyverse Show

In a recent episode of The Moneyverse Show, hosted by Andreas Vecchiet and co-hosted by global money expert Lionel Lee, the spotlight was on cryptocurrency as a potential avenue for future wealth. The guest of honor was Anndy Lian, a best-selling author, intergovernmental blockchain advisor, and early crypto advocate. With over a decade of experience in the crypto space, Lian shared his insights on the question: Is crypto a good way to make money for the future?

Here are the key highlights and takeaways from the conversation:

The Question: Is Crypto a Good Way to Make Money?
Lionel Lee, the show’s co-host, posed the viewer’s question to Lian, asking whether crypto is a viable way to generate wealth in the long term.

Lian’s response was nuanced, offering both optimism and caution. He began by explaining that the answer is both “yes and no,” depending on the individual’s approach, risk appetite, and understanding of the market.

Long-Term Investments in Crypto
Lian highlighted the importance of a long-term perspective when investing in cryptocurrency. He suggested that investors focus on the top 10, 20, or 30 cryptocurrencies listed on platforms like CoinMarketCap or CoinGecko. These coins, often referred to as “blue chips” in the crypto world, are more stable and less volatile compared to newer, lesser-known tokens.

“If you invest in the top cryptocurrencies for the long term, the returns can be stable and satisfactory,” Lian explained. He emphasized that while these investments are not without risk, they are comparable to traditional financial instruments in terms of stability.

He cited examples like XRP, which recently experienced a significant price surge. Investors who bought in at a low price could see returns as high as 5x. However, Lian cautioned that such opportunities require patience and a willingness to hold through market fluctuations.

The Appeal of Control in Crypto Investments
One of the key advantages of cryptocurrency, according to Lian, is the level of control it offers to investors. Unlike traditional investments managed by private bankers or financial institutions, crypto investments allow individuals to have full control over their assets.

“You control everything you’re trying to do,” Lian said, highlighting the decentralized nature of cryptocurrency. This autonomy is particularly appealing to investors who prefer to manage their own portfolios.

High-Risk, High-Reward Opportunities
For those with a higher risk appetite, Lian discussed the potential of investing in new and emerging cryptocurrencies. These tokens often experience rapid price increases shortly after their launch, offering the possibility of significant returns in a short period.

“If you’re willing to put in what you can afford to lose, say $1,000, and invest in new coins, you could potentially see a 10x return within a day or a week,” Lian explained. However, he cautioned that these investments are highly speculative and should only be pursued by those who understand the risks involved.

Balancing Risk and Reward
Lian stressed the importance of balancing risk and reward when investing in cryptocurrency. While blue-chip cryptocurrencies offer stability, newer tokens provide the allure of high returns. He advised investors to diversify their portfolios and only invest what they can afford to lose.

“It all comes down to the individual’s appetite for risk,” Lian said. He encouraged viewers to educate themselves about the market and make informed decisions.

The Future of Crypto as an Investment
When asked about the future of cryptocurrency as a way to make money, Lian expressed optimism. He believes that crypto will continue to be a viable investment option, especially as the market matures and more institutional players enter the space.

“The future for earning good money in crypto is definitely there,” Lian concluded. However, he reiterated the importance of a strategic approach and a long-term mindset.

Final Thoughts
The episode provided valuable insights into the world of cryptocurrency, with Anndy Lian offering a balanced perspective on its potential as an investment. While crypto can be a lucrative way to make money, it requires careful planning, risk management, and a willingness to learn.

For those new to the space, Lian’s advice is clear: start with blue-chip cryptocurrencies, focus on long-term gains, and only invest what you can afford to lose. For more adventurous investors, the high-risk, high-reward nature of new tokens can be enticing, but it’s crucial to proceed with caution.

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”.

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