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How is the UK-US trade deal shaping cryptocurrency and stock market trends?

How is the UK-US trade deal shaping cryptocurrency and stock market trends?

I’m excited to dive into the multifaceted implications of the recent UK-US trade deal and its ripple effects across macroeconomic indicators, equity markets, foreign exchange, commodities, fixed income, and even the booming cryptocurrency sector.

This deal, alongside other economic developments, paints a complex yet fascinating picture of where the world economy might be headed in the coming months.

Below, I’ll offer my detailed perspective on these topics, weaving together the facts and data provided to give you a comprehensive view of what’s happening and why it matters.

Macroeconomic developments: A trade deal with big implications

The UK-US trade deal is a landmark agreement that’s making waves in the global economic landscape. At its core, it maintains a 10 per cent tariff on UK goods entering the US—a compromise from the steeper tariffs initially floated by the Trump administration. This tariff level strikes a balance, protecting some US industries while still fostering trade with a key ally.

What really stands out, though, is the deal’s hefty commitments: the UK will purchase US$10 billion worth of Boeing planes, a massive win for the American aerospace giant and a boost to US manufacturing jobs.

Meanwhile, Rolls Royce gets a golden ticket to export parts tariff-free, which could supercharge its revenue and strengthen the UK’s position in the high-tech engineering sector. The goal here is clear—both nations are aiming to juice up their export opportunities and rake in more revenue, a strategic move in a world where trade tensions have been simmering for years.

But this deal doesn’t exist in a vacuum. President Trump’s upbeat comments about upcoming tariff talks with China add another layer of intrigue. If those negotiations—set to kick off in Switzerland this weekend—go well, we could see a broader easing of trade barriers, which would be a game-changer for global markets.

Imagine a scenario where the US, UK, and China start aligning their trade policies more closely; it could unlock a flood of economic activity and calm jittery investors who’ve been on edge since the trade wars kicked off.

On the domestic front, though, the US economy is sending mixed signals. Nonfarm labor productivity dropped by 0.8 per cent in the first quarter, which sounds alarming until you dig into the details. Oxford Economics chalks this up to one-off quirks—think temporary disruptions or statistical noise—rather than a sign of deeper trouble.

At the same time, labor costs shot up by 5.7 per cent , but here’s the kicker: this doesn’t seem to point to runaway wage growth. Employers might just be shelling out more for benefits or overtime rather than hiking base salaries across the board. Jobless claims offer a brighter spot, falling to 228,000 against expectations, with continued claims steady at 1.879 million.

Even with tariffs in play, the labor market’s holding firm—last week’s uptick was just a blip tied to New York’s school spring break. Looking ahead, we’ll get a clearer read on labor trends by the July FOMC meeting, but for now, don’t hold your breath for a June rate cut. The Fed’s likely to sit tight until the data paints a sharper picture.

Equity markets: Riding the wave of trade optimism

Over in the equity markets, the mood is unmistakably upbeat, and it’s easy to see why. The S&P 500 climbed 0.6 per cent , the Nasdaq leapt 1.1 per cent , and the Dow tacked on 255 points—all fuelled by this trade deal and a sigh of relief over cooling geopolitical tensions. Trump’s been vocal about this, urging investors to “buy stocks now” and calling the UK deal a breakthrough for American exports.

Sure, that 10 per cent tariff lingers, but the Boeing purchase and Rolls Royce perk more than offset the sting for many market watchers. His hint at possible tariff cuts with China, depending on those Switzerland talks, only adds to the bullish vibe.

Tech stocks are the stars of this rally. Tesla revved up 3.1 per cent , Palantir rocketed 7.8 per cent , and heavyweights like Apple and Alphabet clawed back some recent losses. It’s a classic case of trade optimism lifting all boats—well, almost all. Arm stumbled 6.2 per cent after a gloomy forecast, and Eli Lilly shed 3.2 per cent as healthcare stocks took a hit across Europe and North America.

After hours, Coinbase tripped too, dropping 2.6 per cent after missing revenue targets and reporting a jaw-dropping 94 per cent plunge in net income, thanks to a markdown on its crypto holdings. It’s a reminder that even in a rising market, not every company’s riding the same wave.

Europe’s markets echoed this positivity on Thursday, with the STOXX 50 up 1.1 per cent and the STOXX 600 edging up 0.4 per cent. Tech and financials led the charge—ASML, UniCredit, Santander, and Intesa Sanpaolo all jumped over three per cent —while AB InBev toasted a 3.2 per cent gain on solid earnings.

But it wasn’t all rosy: pharmaceuticals dragged things down, with Novo Nordisk sliding four per cent after slashing guidance on its obesity drug, and Mercedes Benz tanked six per cent after cutting dividends amid economic headwinds.

The EU’s keeping a close eye on this US-UK deal, too, warning of retaliatory tariffs on US goods if its own trade talks falter. Meanwhile, central banks are in a holding pattern—the Riksbank and Norges Bank stood pat, but the Bank of England trimmed rates, adding another twist to the monetary policy mix.

In Hong Kong, the Hang Seng Index rose 0.8 per cent to 22,881, stretching its winning streak to six sessions. The Fed and HKMA holding rates steady, paired with Trump’s trade deal buzz, lit a fire under consumer and tech stocks.

China’s central bank, the PBoC, pitched in with rate cuts and growth-friendly policies, though financials lagged, and worries about Beijing’s fiscal plans and looming economic data kept gains in check. It’s a delicate balance—optimism is high, but there’s still plenty of uncertainty in the air.

Cryptocurrencies: Bitcoin and Ethereum steal the spotlight

Now, let’s talk crypto, because it’s impossible to ignore the fireworks here. Bitcoin’s charging toward its January 2025 peak of US$109,000, recently blasting past US$99,800. What’s driving this? A perfect storm of institutional buying, ETF inflows, and the buzz from these US-UK-China trade talks.

If it punches through that psychological US$100,000 barrier, analysts see it soaring to US$110,000 or even US$120,000. State-level regulations in the US are turning more crypto-friendly, too, giving this rally some serious legs. It’s not just hype—Bitcoin’s becoming a legit player in the financial world.

Ethereum’s no slouch either, trading at US$3,762.59 with a whopping 29.61 per cent gain this week alone, including a US$120 spike in 24 hours. Analysts are more cautious here, pegging a May price around US$1,665 and a year-end range of US$1,445 to US$2,900.

But don’t sleep on ETH—it’s the backbone of hot trends like DeFi, NFTs, and tokenisation. While Bitcoin grabs headlines, Ethereum’s quietly building the infrastructure for the next wave of digital finance.

Currencies and gold feel the heat, yields shift with the tide

The trade deal’s shaking up the forex market, too. The British pound’s getting a lift as investors cheer the UK’s Boeing buy and Rolls Royce boost, even with that 10 per cent tariff in place. The Japanese yen, though, is lagging—likely a victim of the dollar’s muscle flexing on the global stage.

Speaking of which, that dollar strength is hammering gold, which has slumped for two straight days. It’s a textbook move: when the greenback shines, safe-haven assets like gold tend to take a backseat.

In the bond world, yields are getting cheaper, especially at the front and belly of the curve. Think shorter- and medium-term Treasuries here—this shift suggests markets are recalibrating after the trade news and mixed economic data.

Investors might be betting on steady or slightly higher rates down the line, or just adjusting to a world where trade deals could juice up growth without sparking inflation fears just yet.

My POV: A pivotal moment with plenty of unknowns

So, what’s my view on all this? The UK-US trade deal is a big deal—pun intended. It’s a pragmatic step that keeps trade flowing while dodging the all-out tariff wars some feared. That US$10 billion Boeing haul and Rolls Royce’s tariff-free exports are concrete wins, and if Trump’s China talks bear fruit, we could be on the cusp of a broader trade thaw.

Economically, the US is in a weird spot—productivity’s down, labor costs are up, but the job market’s steady as a rock. It’s not screaming recession, but it’s not exactly a boom either. The Fed’s got a tough call ahead, and I’d bet they hold off on any big moves until summer.

The equity markets are loving this trade optimism, and I get it—stocks thrive on stability and growth signals. Tech’s leading the pack, but those healthcare and crypto stumbles show how uneven this rally is. Europe and Hong Kong are in sync, though local quirks like pharma woes and China’s fiscal tightrope keep things interesting.

Crypto’s the wild card—Bitcoin’s on a tear, and Ethereum’s got staying power. If you’re an investor, this feels like a moment to watch closely, not jump in blind.

The pound’s pop and gold’s dip make sense in this dollar-driven world, and those yield shifts hint at markets still figuring out what’s next. Overall, this deal’s a shot in the arm for global trade, but it’s not a cure-all. The China talks, labor trends, and sector shakeouts will tell us whether this is a turning point or just a blip.

For now, I’m cautiously optimistic—there’s potential here, but plenty of hurdles too. Stay tuned; the next few months could be a wild ride.

 

Source: https://e27.co/how-is-the-uk-us-trade-deal-shaping-cryptocurrency-and-stock-market-trends-20250509/

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

Trade War tensions escalate: How China’s jet ban and Bitcoin slips as supply outpaces demand

Trade War tensions escalate: How China’s jet ban and Bitcoin slips as supply outpaces demand

The global financial markets are navigating a turbulent landscape as of April 16, with risk sentiment taking a noticeable hit due to escalating trade tensions and mixed economic signals. I see a complex interplay of geopolitical manoeuvring, economic data, and market dynamics shaping investor behaviour. My perspective is that while short-term volatility is likely to persist, driven by trade war escalations and policy uncertainties, there are pockets of resilience and opportunity for those who can navigate the noise with discipline and foresight. The current environment underscores the importance of diversification, safe-haven assets, and a keen eye on macroeconomic indicators to weather the storm.

The ongoing tit-for-tat trade war between the US and China continues to dominate headlines and rattle markets. Reports that China has instructed its airlines to halt further deliveries from a major US jet manufacturer signal a deepening of retaliatory measures. This move is not just a symbolic gesture; it directly impacts a key American industry and could disrupt global supply chains in aviation, a sector already strained by post-pandemic recovery challenges.

The decision comes as part of a broader escalation, with China recently raising tariffs by up to 125 per cent on select US products in response to US tariffs announced earlier this month. These developments have contributed to a sharp decline in Wall Street, with the Nasdaq and S&P 500 dropping 4.3 per cent and 3.5 per cent, respectively, in recent sessions. The MSCI U.S. index, down 1.2 per cent on April 15, reflects this pressure, particularly in sectors such as Consumer Discretionary and Healthcare, both of which shed 0.7 per cent. The trade war’s ripple effects are clear: uncertainty is eroding investor confidence, and companies exposed to international markets are bearing the brunt.

Across the Atlantic, the lack of progress in EU-US trade negotiations adds another layer of complexity. Despite hopes for a thaw in transatlantic relations, the talks have stalled, raising concerns about potential new tariffs or retaliatory measures from the European Union. This stagnation is particularly troubling given the EU’s economic challenges, including sluggish growth in Germany and fiscal pressures in France. The failure to reach a deal could exacerbate global trade fragmentation, forcing companies to rethink supply chains and pricing strategies.

Meanwhile, President Trump’s probe into tariffs on critical minerals introduces further uncertainty. Critical minerals, essential for technologies such as electric vehicle batteries and renewable energy systems, are already subject to supply chain vulnerabilities due to China’s dominance in processing. A US tariff on these materials could drive up costs for domestic manufacturers while potentially failing to reduce reliance on foreign supplies, as seen in past trade policies that misfired, like the copper tariffs criticised by analysts for their unintended economic blowback.

The technology sector, a cornerstone of global markets, is also feeling the heat. Nvidia’s six per cent drop in late trading on April 15, following US export restrictions on its H20 chips to China and Hong Kong, underscores the vulnerability of tech giants to geopolitical risks. These restrictions, imposed indefinitely, are a significant blow to Nvidia, which has relied on the Chinese market for a substantial portion of its revenue.

The broader implications for the semiconductor industry are concerning, as tit-for-tat measures could disrupt innovation and profitability across the sector. Asian equity indices, already under pressure from deteriorating trade relations, opened lower this morning, reflecting the market’s unease with these developments. The tech sector’s woes highlight a broader truth: in a globalised economy, no industry is immune to the fallout of trade wars.

Amid this gloom, there are glimmers of resilience. The US Financials sector, up 0.3 per cent, has held up well, buoyed by strong earnings from major banks as the first-quarter reporting season gains momentum. Positive earnings suggest that banks are navigating higher interest rates and economic uncertainty with relative ease, providing a stabilising force for markets. Across the pond, UK indices have been a bright spot, with the FTSE 100 and FTSE 250 gaining 1.4 per cent and 1.5 per cent, respectively. The prospect of a US-UK trade deal, hinted at in recent discussions, has fueled optimism, as such an agreement could shield the UK from the worst of the global trade storm. However, I remain cautious about over-optimism here; trade deals are notoriously complex, and the UK’s exposure to EU markets means it’s not entirely insulated from broader trade tensions.

The bond market offers another lens into investor sentiment. US Treasuries saw a reprieve on April 15, with the 10-year Treasury yield slipping three basis points to 4.33 per cent after a period of volatility. The two-year yield, however, ticked up slightly to 3.84 per cent, reflecting mixed expectations about Federal Reserve policy. Investors piling into Treasuries as a safe haven have driven yields lower in recent days, a trend that aligns with fears of a trade-war-induced recession. JPMorgan’s recent increase in recession odds to 60 per cent from 40 per cent underscores this concern, as analysts warn that sustained tariffs could tip the U.S. and global economies into contraction. The US Dollar Index’s 0.5 per cent gain, snapping a five-day losing streak, suggests some resilience in the greenback, likely driven by its safe-haven status. Gold, up 0.7 per cent, continues to benefit from this flight to safety, with prices holding near record highs. Brent crude, however, slid to US$61 per barrel, weighed down by the International Energy Agency’s downgraded oil demand forecast and the broader impact of trade tensions on global growth.

China’s economic data provides a counterpoint to the prevailing pessimism. First-quarter GDP growth of 5.4 per cent and stronger-than-expected March activity data beat forecasts, signaling that Beijing’s stimulus measures are gaining traction. Market participants anticipate further policy easing and fiscal expansion to counter the drag from US tariffs, which could stabilize China’s economy in the near term. However, the beat hasn’t translated into broader market optimism, as Asian equities remain under pressure.

This disconnect suggests that trade war fears are overshadowing positive economic signals, a dynamic that could persist unless there’s a de-escalation in US-China relations.

The cryptocurrency market, often seen as a barometer of speculative sentiment, is also grappling with challenges. Bitcoin’s price, at US$67,420 on April 16, is down slightly from US$67,800, with trading volume dropping 10 per cent in the last 24 hours.

Ki Young Ju’s observation that Bitcoin supply is outpacing demand, backed by on-chain data, points to a bearish tilt. The formation of a “death cross” in Bitcoin’s technical indicators—where the 50-day moving average crosses below the 200-day moving average—further signals potential downside. Ethereum, trading at US$1,603, is similarly under pressure, with its RSI at 44.34 and MACD indicating lingering bearish momentum. The broader crypto market’s struggles reflect a flight from riskier assets, exacerbated by the repeal of DeFi regulations, which has paradoxically triggered outflows rather than inflows. The shift of capital to Layer-2 solutions and other blockchains suggests that Ethereum’s dominance in decentralized finance is waning, adding to its price woes.

From my vantage point, the current market environment is a stark reminder of the interconnectedness of global economies. Trade wars, once thought to be blunt but manageable tools, are proving to have far-reaching consequences, from aviation to technology to commodities. Investors are right to seek refuge in safe-haven assets like gold and Treasuries, but they should also remain vigilant for opportunities in resilient sectors such as Financials or regions such as the UK, where trade deal prospects offer a glimmer of hope. The cryptocurrency market’s struggles highlight the broader risk-off sentiment, but disciplined traders could find short-term opportunities in Bitcoin and Ethereum if technical indicators signal a reversal.

Looking ahead, the path forward hinges on policy decisions. A de-escalation in US-China trade tensions or progress in EU-US talks could restore confidence, but the Trump administration’s aggressive stance suggests more volatility lies ahead. The Federal Reserve, caught between inflationary pressures from tariffs and recession risks, faces a delicate balancing act.

My advice to investors is to stay diversified, monitor macroeconomic data like the Empire State Manufacturing Survey—which, despite improvement, still signals contraction—and keep a close eye on earnings reports for clues about corporate resilience. The markets are testing our patience, but with careful navigation, there’s still room to find value amidst the chaos.

 

 

Source: https://e27.co/trade-war-tensions-escalate-how-chinas-jet-ban-and-bitcoin-slips-as-supply-outpaces-demand-20250416/

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

Bitcoin battles, gold soars: How tariffs are reshaping wealth

Bitcoin battles, gold soars: How tariffs are reshaping wealth

The global financial markets are navigating a storm of uncertainty, and as an observer with a front-row seat to this unfolding drama, I find myself both fascinated and apprehensive about the forces at play. The past week has been a rollercoaster, with stocks and bonds caught in a relentless selloff driven by escalating trade tensions that have markets on edge.

The White House’s decision to slap a staggering 145 per cent tariff on Chinese imports has sent shockwaves through global economies, and even the brief reprieve offered by President Trump’s 90-day tariff pause hasn’t been enough to restore confidence. Investors are rattled, and for a good reason—the spectre of a US recession looms large, and the ripple effects could reshape the global economic landscape.

As I unpack the market’s reaction, I see a complex interplay of fear, opportunism, and cautious hope, with assets like gold and Bitcoin reflecting the broader search for stability in a world that feels increasingly unmoored.

Let’s begin with the equity markets, where the mood is unmistakably grim. The MSCI US index plummeted 3.5 per cent on Friday, a sharp decline that underscores the market’s growing unease. Defensive sectors like Consumer Staples and Utilities managed to hold their ground, with the former eking out a modest 0.2 per cent gain and the latter slipping just 0.6 per cent.

These sectors, often seen as safe harbours during turbulent times, are benefiting from investors’ flight to quality. But the broader picture is one of retreat—Asian equities, led by Japan, were down in early trading, and US equity futures signalled another weak open, with a projected 0.5 per cent drop.

The MSCI gauge of Asian stocks is on track for its third consecutive week of losses, a streak that reflects the region’s vulnerability to trade disruptions. China and Hong Kong, which briefly rallied on hopes of fresh stimulus from Beijing, gave back those gains on Friday as reality set in: tariffs of this magnitude could choke off growth, and no amount of stimulus may fully offset the damage.

The bond market, meanwhile, is telling its own story of unease. The US Treasury yield curve has steepened, a sign that investors are bracing for a mix of inflationary pressures and economic slowdown. The 10-year Treasury yield climbed 9.3 basis points to 4.42 per cent, reflecting concerns that tariffs could drive up costs and fuel inflation.

At the same time, the 2-year yield dipped 4.6 basis points to 3.86 per cent, suggesting that markets are pricing in slower growth and potential rate cuts down the line. This steepening curve is a classic signal of uncertainty—investors are torn between the immediate inflationary impact of tariffs and the longer-term risk of a recession.

The bond market’s volatility has been exacerbated by a selloff that some analysts liken to the “dash for cash” seen during the early days of the COVID-19 crisis. Hedge funds, caught off guard by the rapid rise in yields, have been forced to unwind leveraged positions, adding to the market’s fragility.

The US dollar, typically a safe haven in times of crisis, is under pressure, with the dollar index sliding 2.0 per cent. This decline reflects growing concerns about US economic growth, as tariffs threaten to disrupt trade and erode confidence in American assets. Meanwhile, the euro and yen are gaining ground, a sign that investors are seeking non-US alternatives.

The yen, in particular, benefits from its status as a safe-haven currency, while the euro’s strength may reflect Europe’s efforts to present a united front against US trade policies. But let’s not kid ourselves—Europe isn’t immune to the fallout. A 20 per cent US tariff on European goods could hammer exporters, and the STOXX 600’s recent slide suggests that investors are already pricing in pain.

Gold, unsurprisingly, is shining bright amid the chaos. Up 3.0 per cent and pushing toward US$3,250 an ounce, the precious metal is basking in its role as the ultimate safe haven. Investors are piling in, driven by fears of economic instability and the inflationary pressures that tariffs could unleash. Gold’s upward momentum feels relentless, and I can’t help but see it as a barometer of the market’s deepest anxieties.

When even US Treasuries—long considered the bedrock of safety—are being dumped in favour of cash and gold, you know the ground is shifting. Brent crude, on the other hand, is struggling, down 3.3 per cent and hovering just above US$62 per barrel. The combination of tariff-induced demand fears and OPEC+’s decision to ramp up output is keeping oil prices in check, a rare bit of relief for consumers but a headache for energy producers.

Then there’s Bitcoin, which occupies a curious niche in this turbulent landscape. At US$79,474, it’s down 3.5 per cent over the past day and 2.24 per cent over the last month, according to CoinMarketCap. April has been a wild ride for the cryptocurrency, with Trump’s tariff announcements triggering sharp swings.

The initial panic on April 2 sent Bitcoin reeling, as investors fled risk assets. But the pause in tariffs has sparked a tentative recovery, with signs of a corrective bullish wave emerging. The Relative Strength Index is showing early positive divergence, hinting that the selling pressure may be easing. Still, Bitcoin faces a tough road ahead. If it can’t break through the US$84,000 resistance level, it risks stalling out.

But if bullish momentum builds, we could see it test US$96,000. What strikes me about Bitcoin is its dual nature—it’s both a speculative asset and a potential hedge against fiat currency debasement. In a world where tariffs are stoking inflation fears, Bitcoin’s narrative as “digital gold” gains traction, even if its volatility keeps it from being a true safe haven.

As I reflect on these developments, I’m struck by the broader implications of this trade war. Tariffs of this scale—145 per cent on China, 20 per cent on Europe, and a baseline 10 per cent on nearly all US imports—are a gamble with high stakes. The White House argues they’re a tool to protect American industries and level the playing field, but the immediate fallout suggests otherwise. Supply chains are buckling, consumer prices are poised to rise, and corporate earnings are under threat.

The market’s reaction—plunging stocks, surging gold, and a weakening dollar—tells me that investors see more pain ahead than promise. China’s retaliatory tariffs, now at 84 per cent on US goods, signal that this isn’t a one-sided fight. Beijing’s hints at further stimulus may cushion the blow, but they’re unlikely to fully offset the drag of restricted trade.

What worries me most is the potential for a self-fulfilling prophecy. Markets are pricing in a US recession, with some estimates putting the odds as high as 60 per cent. If businesses pull back on investment and consumers tighten their belts, that fear could become reality. The Federal Reserve, already grappling with sticky inflation, faces an impossible choice: cut rates to stimulate growth and risk fuelling inflation, or hold firm and watch the economy sputter.

The bond market’s volatility suggests that investors are losing faith in the Fed’s ability to thread the needle. And while Trump’s tariff pause offers a glimmer of hope, it’s a temporary reprieve at best. Negotiations with over 75 countries are underway, but the threat of renewed levies looms large, especially for China.

On the flip side, there’s an argument to be made that markets are overreacting. The US economy has shown resilience before, and corporate America is adept at adapting to new realities. If tariffs force companies to reshore production, it could spark a manufacturing renaissance, creating jobs and strengthening domestic supply chains.

The pause in tariffs has already triggered massive relief rallies, with the S&P 500 posting its biggest one-day gain since 2008 earlier this week. And let’s not forget that volatility creates opportunities—savvy investors are snapping up beaten-down stocks and positioning for a rebound. Bitcoin, too, could benefit if inflation fears drive demand for alternative assets.

Still, I can’t shake the sense that we’re at a tipping point. The global economy is interconnected, and policies that disrupt trade flows don’t just hurt one nation—they reverberate worldwide. Emerging markets like Vietnam, already reeling from currency devaluations, face a precarious future. Europe’s export-driven economies are bracing for impact, and even Japan, with its safe-haven yen, isn’t immune to the slowdown.

As I look at the data—plunging stock indices, soaring gold, and a bond market in disarray—I see a world grappling with uncertainty. My view is cautiously pessimistic: while markets may find moments of relief, the underlying tensions won’t resolve quickly. Investors should buckle up for a bumpy ride, with safe havens like gold and selective defensives offering the best shelter in this storm.

 

 

 

Source: https://e27.co/bitcoin-battles-gold-soars-how-tariffs-are-reshaping-wealth-20250411/

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