When tariffs danced with Bitcoin and markets held their breath

When tariffs danced with Bitcoin and markets held their breath

I’ve been closely following the whirlwind of events shaping global markets on March 12, 2025. The past 24 hours have been a rollercoaster for investors, policymakers, and analysts alike, with shifting narratives around tariff measures, deteriorating global trade relations, and a bold new step into the cryptocurrency realm by the US government.

From President Trump’s tariff tango with Canada to the unveiling of a Crypto Strategic Reserve, there’s a lot to unpack. Here’s my take on what’s driving the global risk sentiment, how markets are reacting, and what this all might mean for the future—grounded in the data and developments at hand.

Let’s start with the tariff saga, which has been the headline-grabber of the day. Overnight, President Trump sent shockwaves through markets by threatening to double tariffs on Canadian steel and aluminum to a hefty 50 per cent. This wasn’t just a shot across the bow—it was a cannon blast aimed at one of the US’s closest trading partners.

The move came after a weekend interview where Trump had already stoked recessionary fears by hinting at aggressive trade policies to protect American interests. For a moment, it looked like we were hurtling toward a full-blown trade war escalation.

But then, in a classic Trumpian pivot, he walked it back to the previously announced 25 per cent rate after Ontario agreed to suspend a 25 per cent surcharge on electricity exports to the US This rapid de-escalation underscores a pattern we’ve seen before: bold threats followed by pragmatic deal-making. It’s a high-stakes game of chicken, and so far, it seems Canada blinked first.

The market reaction was predictably volatile. US stock indices took a beating on Tuesday, with the MSCI US index sliding 0.7 per cent, dragged down by a 1.5 per cent drop in industrials—sectors most exposed to trade disruptions. The S&P 500, already nursing a six per cent decline from last week (its lowest point in six months), couldn’t shake off the tariff jitters, though it did claw back some losses from session lows.

Across the Atlantic, the STOXX 600 shed 1.7 per cent, reflecting Europe’s growing unease about being the next target of Trump’s tariff threats. Meanwhile, US Treasury yields ticked higher, with the 10-year note climbing 6.7 basis points to 4.280 per cent and the 2-year up 6 basis points to 3.943 per cent.

The yield spread widened slightly to 33.9 basis points, hinting at lingering uncertainty about the economic outlook. The US Dollar Index, however, dipped 0.5 per cent, while gold—a classic safe-haven asset—rebounded 0.9 per cent. Brent crude eked out a 0.4 per cent gain to settle at US$69.56 per barrel, reversing some recent losses but still reflecting oil’s sensitivity to global growth fears.

What’s fascinating here is the contrast in Asia, particularly China. Despite the heavy sell-off in US equities overnight, China’s onshore markets bucked the trend. The Shanghai Composite (SHCOMP) and Shenzhen Composite (SZCOMP) both rose 0.4 per cent, buoyed by robust domestic buying.

This resilience suggests that Chinese investors are betting on Beijing’s ability to cushion any fallout from US tariffs—perhaps through stimulus or a weaker yuan. It’s a reminder that while the US remains the world’s economic heavyweight, other players are finding ways to adapt and thrive amid the chaos.

On the data front, the US economy is sending mixed signals. The NFIB Small Business Optimism Index for February fell more than expected, a worrying sign for the backbone of the American economy.

Small businesses are often the first to feel the pinch of trade uncertainty and rising costs, and this retreat could foreshadow broader weakness. Yet, the labor market continues to hold its own. January’s JOLTS data showed job openings edging up to 7.74 million, or a 4.6 per cent rate—proof of resilience despite the tariff noise.

All eyes are now on tonight’s February CPI inflation data, which could either soothe or inflame market nerves. If inflation ticks higher than anticipated, it might force the Federal Reserve to rethink its rate-cutting stance, adding another layer of complexity to an already jittery landscape.

Then there’s the cryptocurrency bombshell, which could prove to be the most consequential story of the day. David Sacks, the White House’s newly minted crypto czar, announced that the Treasury Department will focus on boosting the value of Bitcoin, XRP, and other digital assets already in the government’s possession.

This follows President Trump’s signing of an executive order to establish a Crypto Strategic Reserve, greenlighting Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) for inclusion. It’s a stunning move—one that signals the US is not just dipping its toes but diving headfirst into the digital asset pool. The stated goal? To diversify national assets and bolster America’s financial posture in a world where cryptocurrencies are increasingly influential.

Bitcoin, currently trading above US$82,000 after a four per cent gain in the past 24 hours, is at the heart of this narrative. It’s a sharp rebound from its recent 30 per cent correction off an all-time high of US$109,350, and technical indicators suggest this dip might be nearing its end. Unlike the brutal 41 per cent crash in November 2021, this pullback feels different—less like the start of a bear market and more like a healthy breather amid unprecedented government backing.

The inclusion of other heavyweights like Ethereum, XRP, Solana, and Cardano only amplifies the stakes. This isn’t just about holding tokens; it’s about integrating crypto into the fabric of the US financial system, potentially legitimising it on a scale we’ve never seen.

The implications are profound. For one, it could reshape global risk sentiment in ways tariffs never could. While trade wars dent growth and stoke inflation, a US-led crypto reserve might spark a digital arms race, with other nations racing to stockpile their own reserves.

Posts on X already hint at this sentiment, with users like @digitalartchick noting that the real story isn’t the US buying assets but signalling to the world that crypto is now a geopolitical chess piece.

If countries like China or Russia follow suit, we could see a seismic shift in how wealth and power are measured. On the flip side, critics like @mansikthecat warn of downsides—government control over crypto could lead to price manipulation, undermining the decentralised ethos that drew many to the space in the first place.

From a market perspective, the crypto reserve adds a wild card to an already turbulent mix. Bitcoin’s four per cent jump today contrasts sharply with the S&P 500’s woes, suggesting digital assets might decouple from traditional markets in times of stress. Gold’s 0.9 per cent rise shows safe-haven demand is alive and well, but crypto could soon rival it as a go-to hedge if the US keeps pushing this agenda.

The Treasury’s focus on “increasing the value” of these assets also raises questions: Will they actively manage the portfolio? Buy more during dips? The lack of clarity keeps markets on edge, but the intent is clear—America wants to dominate the crypto frontier.

My view? This is a watershed moment, but it’s not without risks. The tariff flip-flops show Trump’s penchant for disruption, which keeps markets guessing and risk aversion high. The Crypto Strategic Reserve, while visionary, could backfire if it spooks investors or triggers retaliation—imagine China dumping US Treasuries to fund its own crypto hoard.

Yet, the US labour market’s strength and China’s equity resilience offer glimmers of hope. Tonight’s CPI data will be a litmus test: a tame reading could steady the ship, while a hot one might sink it.

For now, I see a world in flux—trade tensions pulling one way, digital innovation the other, and markets caught in the crossfire. I’ll keep digging for the facts, but one thing’s certain: March 12, 2025, will be remembered as a day when the old and new economies collided.

 

Source: https://e27.co/when-tariffs-danced-with-bitcoin-and-markets-held-their-breath-20250312/

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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Leadership Thought: Exploring Stablecoins and Their Role in Crypto Payments

Leadership Thought: Exploring Stablecoins and Their Role in Crypto Payments

Stablecoins have emerged as a pivotal component, offering a bridge between the volatile nature of digital currencies and the stability of traditional fiat money. Anndy Lian, a best-selling book author, and Tran Hung, CEO of UQUID, explore the adaptability of stablecoins in crypto payments and their potential to revolutionize the financial landscape.

Stablecoins are digital currencies pegged to a stable asset, such as the US dollar, to minimize price volatility. As they become integral to the crypto ecosystem, understanding their impact on finance and daily transactions is crucial. This episode brings together two thought leaders to discuss the current state and future potential of stablecoins in the world of payments.

The Role of Stablecoins in the Cryptocurrency Ecosystem
Anndy Lian emphasizes that stablecoins serve as a crucial element in the cryptocurrency ecosystem, acting as a stable medium for transactions. They provide a familiar denomination for users, akin to the US dollar, facilitating easier and more understandable transactions. Stablecoins also encourage broader adoption of cryptocurrencies by offering a less volatile alternative for payments and investments.

Tran Hung highlights the impact of stablecoins in emerging markets, where fiat currencies often face devaluation. Stablecoins offer a reliable store of value, allowing users to preserve their purchasing power. In UQUID’s ecosystem, stablecoins have become a preferred payment method, enabling users to make purchases without worrying about currency fluctuations.

Stablecoins and Cross-Border Payments
Stablecoins are revolutionizing cross-border payments by offering faster, cheaper, and more transparent transactions compared to traditional methods. Tran Hung notes that stablecoins enable instant settlements, reducing the time and cost associated with cross-border transactions. This transparency and efficiency make stablecoins an attractive option for global commerce.

Anndy Lian adds that the transparency of blockchain technology enhances the security of cross-border payments. Transactions can be easily tracked and verified, providing an additional layer of security. Moreover, the stability of stablecoins compared to other cryptocurrencies makes them a preferred choice for international transactions.

The Future of Stablecoins and Central Bank Digital Currencies (CBDCs)
As central banks explore the development of their own digital currencies, the relationship between stablecoins and CBDCs becomes a topic of interest. Anndy Lian believes that stablecoins and CBDCs can coexist, serving different purposes. While stablecoins facilitate quick and low-cost transactions, CBDCs can act as a stable store of value within domestic markets.

Tran Hung agrees, noting that CBDCs are likely to operate on private blockchains, focusing on local transactions and government-related payments. In contrast, stablecoins, built on public blockchains, offer global accessibility and can be used across borders. This distinction allows both forms of digital currency to complement each other in the evolving financial landscape.

The Dominance of USDT in the Stablecoin Market
USDT, or Tether, has maintained its dominance in the stablecoin market due to its first-mover advantage and widespread adoption. Anndy Lian attributes USDT’s success to its early entry into the market and its ability to capture significant liquidity. Despite controversies, USDT has established itself as a reliable and widely used stablecoin.

Tran Hung emphasizes the trust that users have in USDT, particularly in emerging markets where stablecoins offer a solution to currency devaluation. The liquidity and accessibility of USDT make it a preferred choice for both individual users and large institutions.

The Future of Crypto Payments
Looking ahead, both experts envision a future where stablecoins play a central role in crypto payments. Anndy Lian hopes to see a diversification of payment methods, with other cryptocurrencies gaining traction alongside stablecoins. He believes that embracing a variety of digital currencies can drive further adoption and innovation in the crypto space.

Tran Hung sees stablecoins as a gateway to broader cryptocurrency adoption, particularly in regions with unstable fiat currencies. He anticipates that stablecoins will continue to gain popularity, offering a stable and efficient payment method for everyday transactions.

Conclusion
Stablecoins are not just a trend but a transformative force in the world of payments and commerce. From enabling cross-border transactions to providing a stable store of value, stablecoins are reshaping the financial landscape. As we look to the future, the continued evolution and adoption of stablecoins will play a crucial role in driving financial inclusion and innovation.

 

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

Decrypting the Solana Wallet attack and how investors can safeguard their crypto holdings

Decrypting the Solana Wallet attack and how investors can safeguard their crypto holdings

Solana’s hack is one of the major events that happened this week. These are my additional comments.

According to a tweet on Solana account. “There is no evidence the Solana protocol or its cryptography was compromised.” I think we should not take this lightly. I would expect a full postmortem later this week to address to the attack.

The addresses that were affected by the attack were at one point created, imported or used in the Slope mobile applications. Private key information was also accidentally sent to an application monitoring service. I think a decentralized network should stay independent and operate purely by codes. This can help to reduce similar problems.

Whether it is a bridge exploit or supply chain attack, the root problem is still uncertain. I would suggest users to create a new wallet, move their funds over to the new wallet and delete the old ones. Users for the time being can also consider moving their funds to the more reputable centralized exchanges or hardware wallets too. Keeping assets secure amid the uncertain situation is the best way for now.

I think the rest on the network should check on their codes and increase their security to prevent any other possible exploits that could happen. Never be too sure and let your guard down.

 

 

Decrypting the Solana Wallet attack and how investors can safeguard their crypto holdings

With reports indicating around 8,000 ‘hot’ wallets were compromised in the attack, experts advise investors to switch to hardware wallets for better security.

Close on the heels of cross-chain messaging platform Nomad being the target of a $200-million crypto heist, investors using ‘hot’ or internet-connected crypto wallets on the popular blockchain Solana were under attack from an unknown bad actor.

 

Over $8 million stolen from 8,000 investors

With crypto holdings worth over $8 million stolen from approximately 8,000 investors, this latest attack has raised many questions about the security offered by both the Solana network and ‘hot’ wallets that are quite popular with the average crypto investor.
While Solana’s official Twitter account was quick to clarify that the attack was not the result of any compromise in the network’s software, it added that its team of engineers is fervently working with security researchers and ecosystem teams to identify the root cause of this wallet hack.

Create new wallets, delete old ones

“While it is my opinion that a decentralised network should stay independent and operate purely by codes, I think the team at Solana should re-check all their partner systems and increase their security to prevent any other possible exploits. Investors ought to remain vigilant and take necessary precautions at their end,” he said.

“I would suggest users create a new wallet, move their funds over to the new wallet and delete the old ones. They can also consider moving their funds to the more reputable centralised exchanges or hardware wallets too. Keeping assets secure amid the uncertain situation is the best way for now,” he added.

Preliminary investigations have revealed that this exploit was limited to just the Slope wallet on the Solana ecosystem, while hardware wallets used by Slope remained unscathed.

According to Solana, affected wallet addresses were at one point created, imported or used in Slope mobile wallet applications, and their private key information was transmitted to an application monitoring service.

 

Do not store private keys on computers

Commenting on the Solana network and the underlying sentiment, Lin, a senior analyst at Block Review, said according to his statistics, there were 10.5 percent negative sentiments for Solana in the last seven days, while Ethereum had around 6.2 percent and anything below 15 percent is still okay in his opinion.

“Coming back to the private keys that were compromised, I think any of this information should never be on any computer at any given time. This part should be taken care of and well audited by the wallet providers. Users, on the other hand, have to take extra care of their private keys and seed phrases,” Lin said.

Solana has already urged investors affected by the attack to abandon the affected wallets as they could still be compromised even after revoking wallet approvals.

While the exact modus operandi employed is still unknown, crypto industry leaders have highlighted that the suspect transactions were properly signed, further indicating that it could be a supply chain attack with a specific focus on Slope ‘hot’ wallet users.

 

Investors should opt for cold or hardware wallets   

Elaborating on how hackers can still steal from a compromised wallet, Raj Kapoor, founder of India Blockchain Alliance, said since private keys are stored in application and device wallets, hackers can access them and steal cryptocurrencies and that sums up the Solana hack.

“If your wallet has been compromised, it’s paramount that you transfer any existing funds from your compromised wallet to another wallet. Hackers will wipe your account of funds immediately, but if you’re lucky and they have not done this yet, it’s time for investors to take immediate action,” he added.

Since most hacks happen to hit “hot” wallets, investors should opt for cold or hardware wallets instead. While investors may need some of it online for transactions, they should keep what they need in the short term and store most of it offline.

A cold crypto wallet, which is similar in size to a USB device, holds a private key that can be used to access your funds. Investors can set their own private keys as well.

 

Use multi-factor authentication

Investors should also use multi-factor authentication (MFA) as this creates a layered defence on their account with independent credentials based on a password, security token, and/or biometrics.

Phishing is another danger and to prevent it, investors should never log in to their cryptocurrency exchange unless they are sure they are on the correct site.

 

Do not share information over texts, emails

Additionally, investors should not trust texts, emails or chats that ask for your personal information.

Avoiding public WiFi is also a great idea as is updating your software from time to time. Regularly changing the passwords is great as well. Change the password regularly and use a password manager like LastPass or 1Password.

 

‘Hot’ wallets are vulnerable

As Solana continues to work with Slope Finance in conjunction with their partners OtterSec and SlowMist to restore normalcy, this incident again serves to highlight the vulnerability of ‘hot’ wallets to cyberattacks, despite the faster transaction times offered by them.

Comprising the entire collection of web-based, mobile and desktop wallets available today, ‘hot’ wallets should be used in conjunction with ‘cold’ or hardware wallets to strike the perfect balance between speed, functionality and security.

For those actively trading in crypto tokens and other crypto assets, it is recommended to hold trading funds in a ‘hot’ wallet while the bulk of their crypto holdings remains secure in a ‘cold’ or hardware wallet.

Nearly impossible to hack hardware wallets

Since a user’s private keys never leave the device, stealing funds from a hardware wallet is an almost impossible task for malicious cyber entities. Ranging from 50 to a few hundred dollars, the security offered by these hardware wallets more than compensates for the one-time costs involved and is highly recommended for all crypto investors out there.

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