TradFi feels the chill, crypto heats up: US slowdown meets Asia’s digital surge

TradFi feels the chill, crypto heats up: US slowdown meets Asia’s digital surge

The recent retreat in global risk sentiment, driven by a cocktail of weaker-than-expected US economic data and shifting investor moods. The numbers coming out of the US last week painted a concerning picture: manufacturing growth slowed more than anticipated, services took an unexpected dive into contraction territory, and consumer sentiment, as measured by the University of Michigan, slumped to its lowest level since November 2023.

Add to that the spectre of rising inflation expectations, and it’s no surprise that markets reacted with a collective wince. Major US equity indices ended Friday in the red, with the MSCI US index dropping 1.8 per cent, led by steep declines in Consumer Discretionary (down 2.7 per cent) and Information Technology (down 2.5 per cent). Treasury yields also pulled back, with the 10-year dipping seven basis points to 4.42 per cent and the 2-year falling 6 basis points to 4.20 per cent.

Meanwhile, the US Dollar Index edged up 0.2 per cent, hitting a high of 106.74 before settling at 106.61. Gold, despite a slight 0.1 per cent dip on Friday due to profit-taking, is still on track for an eighth consecutive weekly gain, buoyed by safe-haven demand tied to uncertainty over President Donald Trump’s tariff proposals. Brent crude, however, slid 2.7 per cent, reflecting jitteriness over a potential Ukraine peace deal.

Over in Asia, the mood was a bit more upbeat, with the MSCI Asia ex-Japan index climbing 1.76 per cent to notch a sixth straight week of gains, powered by a rally in Chinese tech stocks—Hang Seng soared 4.0 per cent, CSI 300 rose 1.3 per cent, and TAIEX gained 1.0 per cent. Germany’s election results, announced this morning, aligned with polls, with Friedrich Merz’s conservative bloc taking nearly 29 per cent and the far-right Alternative for Germany doubling its share to over 20 per cent. Asian markets opened mixed today, but US equity futures suggest a rebound might be on the horizon.

Let’s unpack this a bit.

TheUS data from S&P Global was a double whammy—manufacturing PMI for February came in weaker than economists had hoped, signaling a slowdown in one of the economy’s key engines. Even more surprising was the services PMI, which flipped into contraction after months of resilience. This isn’t just a blip; it’s a red flag that the US economy might be losing steam faster than anticipated.

The University of Michigan’s sentiment index dropping to its lowest in over a year only adds fuel to the fire. Consumers are clearly rattled, and the culprit seems to be inflation expectations creeping higher. With Trump’s tariff threats looming large—potentially slapping hefty duties on imports from China and elsewhere—households and businesses alike are bracing for higher costs. That fear is palpable in the equity markets, where riskier sectors like Consumer Discretionary and Info Tech bore the brunt of the sell-off.

Investors appear to be rotating out of growth stocks and into safer bets, as evidenced by the drop in Treasury yields. Lower yields typically signal a flight to safety, though the modest uptick in the US Dollar Index suggests some lingering confidence in the greenback as a haven currency amid global uncertainty.

Gold’s performance is particularly telling. Even with Friday’s slight retreat, its eight-week winning streak underscores how jittery investors are. Trump’s tariff talk isn’t just a domestic issue—it’s a global one. If he follows through, we could see supply chain disruptions, higher input costs, and a ripple effect across commodity markets. Gold thrives in times like these, and its resilience despite profit-taking shows that safe-haven demand isn’t going anywhere.

Brent crude’s decline, on the other hand, reflects a different dynamic. The prospect of a Ukraine peace deal could ease geopolitical tensions and reduce oil supply risks, but the uncertainty is keeping traders on edge. A 2.7 per cent drop isn’t catastrophic, but it’s enough to signal that energy markets are grappling with mixed signals.

Asia’s story offers a glimmer of hope amid the gloom. The MSCI Asia ex-Japan index’s 1.76 per cent bounce on Friday, driven by Chinese tech giants, suggests that some pockets of the global economy are still finding their footing. The Hang Seng’s 4.0 per cent surge was a standout, fueled by optimism around China’s tech sector, which has been clawing back ground after years of regulatory crackdowns.

The CSI 300 and TAIEX followed suit, though gains were more modest at 1.3 per cent and 1.0per cent, respectively. This resilience could be a sign that Asian markets are decoupling—at least temporarily—from US woes. China’s stimulus measures and a weaker yuan might be giving exporters a boost, while tech firms benefit from renewed investor appetite. That said, Monday’s mixed start in Asian equities hints that the rally might not have legs unless US markets stabilise.

Switching gears to Europe, Germany’s election results are worth a closer look. Friedrich Merz’s conservative bloc securing nearly 29 per cent of the vote isn’t a shock—polls had been pointing that way for weeks. What’s more eyebrow-raising is the Alternative for Germany (AfD) doubling its share to over 20 per cent. The far-right’s gains signal a growing populist undercurrent that could complicate Merz’s coalition-building efforts.

A Merz-led government might lean toward fiscal conservatism and tougher trade stances, which could clash with Trump’s tariff agenda and add another layer of uncertainty to global markets. For now, though, the immediate market impact seems muted—Asian equities didn’t flinch much this morning, and US futures are pointing to a higher open, suggesting traders are more focused on domestic data than Berlin’s political shuffle.

Then there’s the crypto angle, which feels like a subplot that’s gaining traction. Deribit’s push into Hong Kong is a fascinating development. The city, alongside Singapore, is racing to become Asia’s crypto hub, and Trump’s pro-crypto rhetoric is fanning the flames. Deribit’s chief commercial officer, Jean-David Péquignot, hit the nail on the head—Hong Kong’s appeal lies in its status as a financial nexus and its growing pool of family offices and asset managers dabbling in digital assets. This isn’t just about retail speculation anymore; institutional interest is picking up, and Hong Kong wants a piece of the pie.

Singapore’s in the game too, with both cities rolling out regulatory frameworks to lure crypto firms. The broader market, however, is showing some cracks—AI Agents like ai16z, Fartcoin, and Turbo tanked over five per cent in the last 24 hours, though AIXBT bucked the trend with a 4.06 per cent gain. Ethereum’s holding steady, up 0.58 per cent, thanks in part to buzz around the Ethereum Ecosystem Conference.

But the real wild card is Ye’s “Swasticoin” stunt. His now-deleted posts teasing a token launch next week—after years of slamming similar projects—reek of provocation. Whether it’s a serious move or just Kanye being Kanye, it’s a reminder of how chaotic and hype-driven the crypto space can be. Investors would be wise to steer clear until the dust settles.

So, what’s my take on all this?

The retreat in global risk sentiment feels like a natural response to a US economy that’s flashing warning signs. Manufacturing and services data don’t lie—growth is slowing, and consumers are spooked. Trump’s tariff threats are amplifying the unease, pushing investors toward gold and away from equities. Asia’s resilience is a bright spot, but it’s fragile—dependent on China’s tech momentum and broader market stability.

Germany’s election adds a political twist, though it’s not the main event yet. And the crypto boom in Hong Kong and Singapore? It’s exciting, but the Ye drama underscores the sector’s volatility. We’re in a choppy phase—markets hate uncertainty, and there’s plenty of it to go around.

My gut says we’ll see more turbulence before any clear trend emerges, but if US futures are right, a short-term bounce could be in the cards. Long term, though, it’s anyone’s guess until we get more clarity on Trump’s policies and the US economic trajectory. Stay sharp—this ride’s far from over. Hope you like my observations for 24 February 2025.

 

Source: https://e27.co/tradfi-feels-the-chill-crypto-heats-up-us-slowdown-meets-asias-digital-surge-20250224/

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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Anndy Lian Meets Crypto Curry Club: Trading, Investing And The Lessons Learned Along The Way

Anndy Lian Meets Crypto Curry Club: Trading, Investing And The Lessons Learned Along The Way

Erica Stanford, Founder of Crypto Curry Club meets Anndy Lian, book author and intergovernmental blockchain expert. They talked about trading, investing and other lessons learnt when dealing with crypto.

It’s hard to miss news of the meteoric rise in prices for several coins but crypto’s nature consists of a lot of plunges along the way due to its volatility and unpredictability and one of the biggest challenges for investors when it comes to crypto is to not get caught up in the hype. This is especially so for now that we live in an era where a tweet can easily dictate its rise and fall.

If you’re tempted to invest or are looking to have a little exposure to crypto in your portfolio, Anndy Lian, Chairman of BigONE Exchange lets you in on what to consider before taking the leap.

Give us an overview of all the different ways for people and institutions to get involved in crypto. What are some of the different ways that are being offered on the BigONE Exchange?
[00:01:59] Anndy Lian

Do you see any new trends in terms of what type of people or users are being drawn to these products and strategies?
[00:05:17] Anndy Lian

What methods would you say you see to mitigate with as less risk as possible if somebody is new to crypto and sort of cautious to get in?
[00:08:39] Anndy Lian

How do you see institutional investment in crypto going?
[00:13:21] Anndy Lian

What else do you see needs to come in for crypto to be fully ideal for new investors, but also for institutional money aside from the regulation and ease of use?
[00:19:26] Anndy Lian

Anndy Lian is an all-rounded business strategist in Asia. He has provided advisory across a variety of industries for local, international, public listed companies and governments. He is an early blockchain adopter and experienced serial entrepreneur, book author, investor, board member and keynote speaker.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. He is also the Chairman, Asia for BigONE Exchange. BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.

At Crypto Curry Club, we create opportunities to build meaningful relationships, and exchange value through shared experiences on a range of topics from Blockchain, Digital Assets, Crypto to Tech for Sustainability. The club connects like-minded individuals to come together and affect real change that innovates our future while driving businesses forward.

More information about Crypro Curry Club can be found at https://www.cryptocurryclub.com/. You can visit Anndy at his personal page at https://anndy.com. BigONE Exchange’s information can be found at https://big.one.

 

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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