The shifting sands of global trade and the cryptocurrency surge

The shifting sands of global trade and the cryptocurrency surge

Key points:

  1. US Considers Tariffs: Trump explores reciprocal tariffs on Japan and South Korea, stirring trade tensions.
  2. Market Response Mixed: MSCI US index up 1.1%, but US Treasury yields drop, reflecting cautious optimism.
  3. Gold as Safe Haven: Gold prices rise to near US$3,000, signaling investor caution amid trade uncertainty.
  4. Oil Prices Stable: Brent crude at US$75/barrel, balanced by OPEC+ and US policy dynamics.
  5. Coinbase Soars: Revenue doubles to US$2.3 billion, showing crypto’s mainstream integration and growth.
  6. GameStop’s Crypto Pivot: Traditional retailer GameStop explores cryptocurrencies, signaling broader market acceptance.

The latest developments in global finance have painted a picture of both cautious optimism and bold new ventures on 14 February 2025. As tensions simmer over trade policies, particularly with the US signalling potential reciprocal tariffs against nations like Japan and South Korea, the market’s response has been a nuanced blend of relief and strategic positioning.

Meanwhile, in the digital realm, Coinbase’s latest financial revelations signal a robust mainstream integration of cryptocurrencies, showcasing a significant pivot in investment landscapes.

The tentative global risk sentiment can largely be attributed to the recent news regarding US tariffs. President Trump’s directive to explore reciprocal tariffs has cast a long shadow over international trade relations. The market’s sigh of relief stems from the hope that these tariffs might not be as punitive as initially feared, mirroring the recent adjustments with Canada and Mexico. This development suggests a possible softening of trade war rhetoric, which could lead to more stable investor confidence in the short term.

Yet, the reaction in financial markets shows a clear dichotomy. On one hand, the MSCI US index rose by 1.1 per cent, with materials leading the charge with a 1.7 per cent gain, indicating sector-specific optimism. Conversely, US Treasury yields have seen a decline, with the 10-year yield dropping 9.2 basis points to 4.53 per cent, and the 2-year yield falling by 4.8 basis points to 4.31 per cent. This could be read as the market bracing for potentially slower growth or inflationary pressures easing off, influenced by expectations that the Federal Reserve’s favoured inflation gauge might show softer numbers than anticipated.

The US Dollar Index’s slight decline by 0.6 per cent also speaks to this complex sentiment, where the dollar’s role as a safe haven is being re-evaluated against the backdrop of trade policy uncertainty. Meanwhile, gold’s upward trajectory towards US$3,000 per ounce, with a 0.8 per cent increase, underscores the lingering search for security in traditional safe-haven assets amidst geopolitical and economic uncertainties.

In the oil markets, Brent crude held steady at US$75 per barrel, showing that despite the trade tensions, OPEC+’s supply management and US policy dynamics under the Trump administration continue to exert influence on oil prices, keeping investors’ eyes peeled for any policy shifts or supply changes that could disrupt this balance.

Turning our gaze to the equity markets, Asian equities presented a mixed bag in early trading sessions, indicative of regional variations in response to global trade news. US equity futures suggested a flat opening, perhaps reflecting a cautious approach by investors, waiting to see how these trade negotiations pan out.

Amid these traditional market movements, a more disruptive narrative is unfolding with GameStop’s exploration into alternative asset classes, particularly cryptocurrencies like Bitcoin. This move by GameStop, traditionally a retailer, into digital assets is not just a business pivot but a signal of broader acceptance and integration of cryptocurrencies into mainstream investment portfolios. The social media interaction between GameStop’s CEO Ryan Cohen and Michael Saylor of MicroStrategy underscores this shift, aligning with a trend where traditional companies are looking to diversify into digital currencies to tap into new revenue streams or hedge against inflation.

This brings us to the stellar performance of Coinbase, which has not only met but significantly exceeded Wall Street expectations in its fiscal fourth quarter. Coinbase’s revenue doubled to US$2.3 billion from the previous year, with adjusted earnings per share soaring to US$4.68 from US$1.04. The boom in cryptocurrency trading, fuelled by both institutional and consumer interest, seems to have been amplified by the political climate, particularly post-Trump’s election, which has often been seen as crypto-friendly.

The detailed breakdown of Coinbase’s revenue shows a stark increase in transaction revenue by 172 per cent, reflecting the heightened activity in cryptocurrency markets. The growth in subscription and services revenue by 15 per cent, alongside significant increases in stable coin, Blockchain Rewards, and custodial fee revenues, paints a picture of a maturing ecosystem where various facets of cryptocurrency operations are gaining traction.

This surge in Coinbase’s performance isn’t just about numbers; it’s a narrative of how cryptocurrencies are becoming less of a fringe movement and more of a central player in the financial world. The election of President Trump, perceived by many in the crypto community as favourable due to his deregulatory stance and interest in digital currencies, has likely contributed to this momentum.

The road ahead for both global trade and the cryptocurrency sector is fraught with challenges. For global trade, the effectiveness of ongoing negotiations will determine whether we see a de-escalation or a further escalation of trade barriers. For cryptocurrencies, regulatory clarity, market volatility, and the integration into traditional finance systems remain significant hurdles.

To conclude, the interplay between traditional finance and emerging technologies like blockchain and cryptocurrencies will likely define the next era of economic evolution. The cautious optimism in markets, coupled with bold moves into digital assets by companies like GameStop, and the undeniable success stories like Coinbase, suggest we are on the cusp of a new financial paradigm. Yet, the journey is as much about managing risks as it is about embracing new opportunities, a balance that will test the mettle of investors, policymakers, and innovators alike.

 

Source: https://e27.co/the-shifting-sands-of-global-trade-and-the-cryptocurrency-surge-20250214/

 

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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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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Deciphering the Shiba Inu Surge: A Q&A with Blockchain Expert Anndy Lian

Deciphering the Shiba Inu Surge: A Q&A with Blockchain Expert Anndy Lian

The Shiba Inu token has taken the crypto world by storm, experiencing a dramatic price surge that has left many wondering about the driving forces behind its momentum. To understand this phenomenon, The Shib sat down with Anndy Lian, a renowned blockchain expert and seasoned industry insider, to get his perspective on the factors fueling Shiba Inu’s rise and its potential for long-term success.

The Shib: What are the underlying factors driving Shiba Inu’s recent price surge? Are there any fundamental changes in the cryptocurrency market or within the Shiba Inu ecosystem that have contributed to this growth? How has market sentiment and FOMO played a role in this surge?

Lian: “Shiba Inu’s recent price surge can be attributed to several key factors within the cryptocurrency market and the Shiba Inu ecosystem itself. One of the primary drivers is the significant increase in on-chain activities. This includes a spike in trading volume, token circulation, and whale transactions, indicating heightened market interest and liquidity. The surge in on-chain metrics suggests increased confidence in Shiba Inu’s short-term price movements.

Developments within the Shiba Inu ecosystem have played a crucial role. The integration of liquid staking into Shibarium, Shiba Inu’s layer-2 blockchain solution, has been a significant advancement. This feature allows users to earn rewards by staking their SHIB tokens, adding utility and attracting more participants to the network. Furthermore, the Shiba Inu community has been actively burning tokens, which reduces the available supply and can contribute to long-term price growth.”

The Shib: Based on technical analysis, what indicators or patterns suggest the sustainability of Shiba Inu’s recent price increase? Are there any potential resistance levels that could limit further gains? What is your outlook for Shiba Inu’s price in the coming months? Do you anticipate continued growth or a potential correction?

Lian: “Market sentiment and FOMO (Fear of Missing Out) have significantly contributed to Shiba Inu’s recent price surge. As the cryptocurrency market often thrives on investor sentiment, the increased social media buzz and heightened interest from retail investors have fueled a FOMO-driven rally. This is evident from the spike in Shiba Inu’s social dominance and trading volume, as noted in recent analyses. Such dynamics often lead to rapid price increases as investors rush to capitalize on perceived opportunities before prices climb higher.

From a technical analysis perspective, several indicators suggest the potential sustainability of Shiba Inu’s price increase. Bullish patterns have been identified, I would predict a possible of another 90% rise if current trends continue. However, Shiba Inu is approaching key resistance levels, notably around $0.000020, which could limit further gains if not surpassed. These levels are critical as they often act as psychological barriers where traders might take profits, potentially stalling the upward momentum. Looking ahead, the outlook for Shiba Inu’s price in the coming months is cautiously optimistic.”

The Shib: How do you assess Shiba Inu’s long-term prospects in the competitive cryptocurrency market? What factors will determine its success or failure? Can Shiba Inu transition beyond its meme coin origins to establish a sustainable value proposition?

Lian: “Shiba Inu’s long-term prospects in the competitive cryptocurrency market hinge on its ability to evolve beyond its meme coin origins and establish a sustainable value proposition. The ecosystem’s expansion through various projects like LEASH,BONE, SHIBOSHIS, and the anticipated $TREAT, as well as collaborations like Bad Idea AI, are crucial steps in this evolution.

The success of these projects will play a significant role in determining Shiba Inu’s future. Each project adds a layer of utility and diversification to the ecosystem, potentially attracting a broader user base and increasing the token’s intrinsic value. For instance, LEASH and BONE serve specific roles within the ShibaSwap platform, enhancing its functionality and appeal. The NFT ventures like SHIBOSHIS and SHEBOSHIS tap into the growing interest in digital collectibles, offering unique opportunities for engagement and investment.

Moreover, the introduction of innovative projects like Bad Idea AI could position Shiba Inu at the intersection of blockchain and emerging technologies, further distinguishing it from other meme coins. Success in these areas could lead to increased adoption and integration into various sectors, thereby solidifying its market position.

However, several factors will determine Shiba Inu’s success or failure. These include the ability to deliver on project promises, maintain community engagement, and adapt to regulatory changes. The cryptocurrency market’s volatility and competitive nature also pose challenges that require strategic navigation.”

The Shib: How has the Shiba Inu community’s role evolved during this recent surge? Has community engagement and development within the Shiba Inu ecosystem (e.g., Shibarium) contributed to the price appreciation? How might changing regulatory landscapes, both domestically and internationally, affect Shiba Inu’s future growth? Are there any emerging competitors or trends that could challenge Shiba Inu’s market position?

Lian: “The Shiba Inu community has played a pivotal role in the recent surge of the cryptocurrency, with engagement levels reaching unprecedented heights. Based on what I see, community engagement has exploded by over 12,000%, which has significantly contributed to the increased trading volume and price appreciation of SHIB. This active participation has been crucial in driving the momentum behind Shiba Inu’s growth, as community-driven initiatives often amplify interest and investment in the token.

The changing regulatory landscape poses potential challenges for Shiba Inu’s future growth. As governments worldwide continue to develop and implement cryptocurrency regulations, Shiba Inu must navigate these changes to ensure compliance and maintain its market position. Regulatory challenges could impact its adoption and integration into mainstream financial systems. Staying compliance is key for Shiba Inu. In near future, I think there is a need to consider how to present Shytoshi at events. I do not want to see the ‘leader’ getting into any trouble. Being careful is key.

Emerging competitors and trends, such as other meme coins like Pepe, could also challenge Shiba Inu’s market position. To remain competitive, Shiba Inu must continue to innovate and expand its ecosystem, leveraging partnerships with exchanges like OKX and Gate, and new projects like MemeCore. I noted that Shiba Inu is supportive of Neiro, even followed them. I again noted that Shibtoshi, verified billionaire and CEO of SquidGrow is now followed by Shiba Inu. This means Shiba Inu is uniting good projects and is open to work with good people. This would only help strengthen Shiba Inu as a whole.”

About The Expert

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. Anndy has held key positions in various organizations, including Chairman of BigONE Exchange and Advisory Board Member for Hyundai DAC. He is currently the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Anndy is also an author, with his books “Blockchain Revolution 2030” and “NFT: From Zero to Hero” providing insights into the blockchain and NFT space. He is a strong advocate for blockchain technology and its potential to revolutionize traditional businesses.

 

Source: https://news.shib.io/2024/10/02/shiba-inu-surge-deciphering-a-qampa-with-blockchain-expert-anndy-lian/

 

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”.

j j j