Tariffs, tariffs, tariffs.
The fluctuating import duties introduced by Trump were the major focus this week. Initially, these tariffs pushed stock and cryptocurrency prices significantly down. By the week’s end, however, with a 90-day pause on all new tariffs outside of those related to China, markets experienced a rebound.
Bitcoin climbed back to a prior threshold of $82,000, mirroring its position from the previous week. Analysts engaged in discussions about whether the cryptocurrency displayed “safe haven” properties akin to gold during the recent downturn, or if it merely functioned as another risk asset. Ultimately, the prevailing view was that Bitcoin demonstrated resilience, though it didn’t entirely instill confidence.
Our Asia reporting team excelled in covering market developments. Omkar Godbole started the week strongly, outlining how the unraveling of the “basis trade” could influence Bitcoin’s valuation. Sam Reynolds shared insights on Kalshi’s likelihood of emerging victorious in its legal struggles in Nevada, right before the prediction market celebrated its inaugural success in the state. Shaurya Malwa highlighted the first XRP ETF listing in the U.S. and noted how Teucrium’s leveraged fund garnered $5 million on its debut trading day.
From our European team came insightful analysis from James Van Straten, discussing the troubling trend of the important U.S. 10-Year Yield moving unfavorably for Trump, and a feature by Oliver Knight illustrating the resilience of the decentralized economy amidst chaos, titled How DeFi ‘Defied’ Market Carnage as Traders Poured Millions Amid Panic. Our reporting extended beyond merely tariffs and market fluctuations; Jamie Crawley’s exclusive revealed that Rootstock was gearing up to unveil SDKs for Bitcoin Layer 2s using BitVMX, based on an embargoed press release he managed to secure an interview with the founder about. Additionally, Oliver provided a follow-up on the aftermath of the price manipulation exploit concerning HyperLiquid from March, detailing How the Hype for HyperLiquid’s Vault Evaporated Due to Concerns Over Centralization.
Notably, much news surfaced beyond tariff discussions. Paul Atkins was confirmed as the new chair of the SEC, while the Department of Justice disbanded its crypto enforcement unit, leading to criticism from various factions, including Democrats, that the government was not serious about tackling wrongdoing in the sector. The SEC also approved options for ETH ETFs after a prolonged delay, and President Trump scrapped a contentious DeFi accounting regulation.
This week underscored the increasing significance of cryptocurrency within the realms of finance and macroeconomics. Exciting times lie ahead.