Global crypto valuation tops $4 trillion amid regulatory breakthrough
The $4 trillion milestone reflects the crypto industry's remarkable evolution since its early speculative and fringe beginnings. With growing interest from asset managers, the launch of new exchange-traded products, and broader adoption among retail and corporate users, digital assets are increasingly becoming a focal point in global financial discussions, Reuters reported.The valuation surge comes amid a perfect storm of positive catalysts: renewed investor confidence, clearer regulations in major economies, and rising institutional participation.Stablecoins, designed to maintain a fixed 1:1 value with fiat currencies, are widely used by crypto traders to move funds between tokens. Their adoption has soared in recent years, and proponents say they could soon power instant global payments."The Genius Act will go down in history as a law that served as a foundational step in the mainstreaming of crypto as an asset class," said Chris Perkins, president of CoinFund.Corporate treasury allocations to bitcoin are also accelerating, with an increasing number of public companies adding the cryptocurrency to their balance sheets as a long-term store of value.The sector was last trading at a combined market value of $3.92 trillion, as bitcoin — the world's largest cryptocurrency — dipped 1.8%. Earlier this week, bitcoin surpassed the $120,000 mark, setting a new record. Brokerage firm Bernstein forecasts the token could reach $200,000 by the end of 2025.Ether, the second-largest crypto token, was last up 4.5% and has more than doubled in value over the past three months. The ongoing rally has also lifted crypto-linked equities, with Coinbase and Robinhood reaching all-time highs on Friday.Shares of Coinbase were last up 1%, while Robinhood — which also facilitates crypto trading — gained 3%.- Ends
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Time of India
33 minutes ago
- Time of India
Asian markets slip: Tariff talks cloud investor sentiment; US-China talks cast shadow
AI-generated representative image Asian markets broadly declined on Tuesday, as initial optimism surrounding newly proposed trade agreements with Japan and the European Union by US President Donald Trump began to fade. Japan's Nikkei 225 slipped nearly 0.7 per cent to 40,725.23, while Australia's S&P/ASX 200 edged down 0.3 per cent to 8,670.50. South Korea's Kospi managed to recover from earlier losses, ending flat with a marginal gain of less than 0.1 per cent at 3,212.59. In China, Hong Kong's Hang Seng Index dropped 1.1 per cent to 25,276.36, and the Shanghai Composite fell 0.3 per cent to 3,586.93. Analysts said investors turned cautious as attention shifted to ongoing trade discussions between the US and China. US Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng in Sweden, though no major breakthroughs were reported. Bessent suggested that existing tariff levels would likely remain in place. 'Aside from addressing economic imbalances, tariffs are also now well entrenched in the geo-political arena,' said Tan Boon Heng of Mizuho Bank's Asia & Oceania Treasury Department. Trump recently unveiled a new trade framework with Japan, proposing a 15 per cent import tax- lower than the previously floated 25 per cent. Under the deal, Japan agreed to invest $550 billion in the US and expand access to its automotive and rice markets, though finer details are still pending. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 Historic Cars Every Enthusiast Should Know Undo Meanwhile, the US and the EU struck a deal to impose 15 per cent tariffs on cars and other goods, again lower than earlier threats. Despite the announcements, many trade details remain unresolved, keeping investors on edge. US markets ended Monday relatively stable, with investors awaiting the Federal Reserve's upcoming interest rate decision on Wednesday. Wall Street broadly expects the Fed to delay any rate cuts until September, although some Trump-appointed officials could dissent. The Fed has held rates steady throughout 2025 following a series of reductions late last year. Tech Rally Drives Momentum Technology and AI-linked stocks continued to lead the market. Tesla shares jumped 3 per cent after it announced a potential $16.5 billion semiconductor deal with Samsung Electronics. Samsung's stock in Seoul surged 6.8 per cent. Chipmakers saw broad gains following Alphabet's announcement of an $85 billion investment in AI chips and related initiatives. Advanced Micro Devices climbed 4.3 per cent, while Super Micro Computer surged 10.2 per cent. However, not all earnings updates impressed. Revvity shares plunged 8.3 per cent despite beating quarterly earnings expectations, as its full-year forecast fell short of analyst estimates. The result weighed on broader sentiment. Investors are watching closely as nearly one-third of S&P 500 companies are due to report quarterly results this week. Strong earnings are seen as critical to justifying recent stock rallies, which have been partly fuelled by tariff relief hopes. Some analysts, however, remain sceptical about elevated valuations without corresponding profit growth. Commodities and currency moves In energy markets, US crude edged up by 1 cent to $66.72 per barrel, while Brent crude added 6 cents to $70.10. On the currency front, the US dollar strengthened slightly to 148.56 Japanese yen from 148.54 yen. The euro ticked up to $1.1600 from $1.1593. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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First Post
an hour ago
- First Post
Trump gets tough on Russia: What's hope for Ukraine can cause economic turmoil elsewhere
As the shortened deadline approaches, the world watches to see whether Trump's high-stakes gamble will force a breakthrough in the Ukraine conflict or lead to unintended consequences on the global stage. read more US President Donald Trump sips Diet Coke from his wine glass after a toast, during a luncheon for world leaders at the 73rd session of the United Nations General Assembly in New York, US, September 25, 2018. File Image/Reuters In a bold move, US President Donald Trump has drastically shortened the timeline he initially set for Russian President Vladimir Putin to secure a ceasefire with Ukraine. Originally giving Russia 50 days, Trump now insists on a resolution in just '10 or 12 days,' signalling an aggressive push to alter the course of the ongoing war. The timing is critical. Ukraine is grappling with its toughest moment on the battlefield since the conflict began. STORY CONTINUES BELOW THIS AD By September 3, the original deadline, Russia is poised to solidify significant territorial gains. Over the past two weeks, Moscow's forces have made rapid and strategic advances, positioning them to potentially encircle key eastern Ukrainian cities like Pokrovsk, Kostiantynivka, and Kupiansk in the north. Such a development could shift the front lines dramatically, bringing Putin closer to his goal of seizing the Donetsk region. The next '10 or 12 days' will be pivotal. If Trump's ultimatum proves to be another hollow threat or if the deadline shifts again, it could fuel perceptions of weakness within his administration. Critics have already pointed to a pattern they dub ' TACO' (Trump Always Chickens Out), suggesting Trump may hesitate to follow through on tough measures. Trump's secondary tariff gamble Last week, Trump floated the idea of imposing tariffs as high as 100 per cent on Russia's trading partners if Putin fails to halt hostilities within six weeks. However, this threat is fraught with complications. Russia's closest trading partners, China and India, are deeply intertwined with the US in delicate trade and tariff negotiations. Imposing secondary sanctions or tariffs on these nations could have far-reaching consequences for the global economy. Tariffing China, India to carry serious implications India, a close US partner, relies heavily on Russian energy. Complex mechanisms allow it to purchase this energy without destabilising global oil markets, which could otherwise drive up prices and harm the US economy. China, a Russian ally, is even more dependent on Moscow's energy supplies and maintains a complicated, often tense economic relationship with the United States. Sanctions on either country could disrupt global energy markets and strain US relations with two critical trading partners. STORY CONTINUES BELOW THIS AD If Trump follows through with these sanctions, his actions would mark a significant escalation compared to the policies of his predecessor, President Joe Biden. Yet, the risk of miscalculation looms large. Punishing Russia's trading partners could derail ongoing negotiations with China and India, potentially backfiring on US interests and destabilising the global economy. As the shortened deadline approaches, the world watches to see whether Trump's high-stakes gamble will force a breakthrough in the Ukraine conflict or lead to unintended consequences on the global stage.
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Business Standard
an hour ago
- Business Standard
Trump gets economy he wants, but growth risks may spoil his victory lap
President Donald Trump is getting his way with the world economy. Trading partners from the European Union to Japan to Vietnam appear to be acceding to the president's demands to accept higher costs in the form of high tariffs for the privilege of selling their wares to the United States. For Trump, the agreements driven by a mix of threats and cajoling, are a fulfillment of a decades-long belief in protectionism and a massive gamble that it will pay off politically and economically with American consumers. On Sunday, the United States and the 27-member state European Union announced that they had reached a trade framework agreement: The EU agreed to accept 15 per cent US tariffs on most its goods, easing fears of a catastrophic trans-Atlantic trade war. There were also commitments by the EU to buy $750 billion in US energy products and make $600 billion in new investments through 2028, according to the White House. We just signed a very big trade deal, the biggest of them all, Trump said Monday. But there's no guarantee that Trump's radical overhaul of US trade policy will deliver the happy ending he's promised. The framework agreement was exceedingly spare on details. Most trade deals require months and even years of painstaking negotiation that rise and fall on granular details. High-stakes negotiations break Trump's way Financial markets, at first panicked by the president's protectionist agenda, seem to have acquiesced to a world in which US import taxes tariffs are at the highest rates they've been in roughly 90 years. Several billion in new revenues from his levies on foreign goods are pouring into the US Treasury and could somewhat offset the massive tax cuts he signed into law on July 4. Outside economists say that high tariffs are still likely to raise prices for American consumers, dampen the Federal Reserve's ability to lower interest rates and make the US economy less efficient over time. Democrats say the middle class and poor will ultimately pay for the tariffs. It's pretty striking that it's seen as a sigh of relief moment, said Daniel Hornung, a former Biden White House economic official who now holds fellowships at Housing Finance Policy Centre and the Massachusetts Institute of Technology. But if the new baseline across all trading partners is 15 per cent, that is a meaningful drag on growth that increases recession risks, while simultaneously making it harder for the Fed to cut. The EU agreement came just four days after Japan also agreed to 15 per cent US tariffs and to invest in the United States. Earlier, the United States reached deals that raised tariffs on imports from Vietnam, Indonesia, the Philippines and the United Kingdom considerably from where they'd been before Trump returned to the White House. More one-sided trade deals are likely as countries try to beat a Friday deadline after which Trump will impose even higher tariffs on countries that refuse to make concessions. Trump's long-held theory now faces reality The US president has long claimed that America erred by not taking advantage of its clout as the world's biggest economy and erecting a wall of tariffs, in effect making other countries ante up for access to America's massive consumer market. To his closest aides, Trump's use of tariffs has validated their trust in his skills as a negotiator and their belief that the economists who warned of downturns and inflation were wrong. Stocks rose slightly on Monday morning on tariffs that once seemed unthinkably risky. Where are the experts' now? Commerce Secretary Howard Lutnick posted on X. But the story is not over. For one thing, many of the details of Trump's trade deals remain somewhat hazy and have not been captured in writing. The US and Japan, for instance, have offered differing descriptions of Japan's agreement to invest $550 billion in the United States. The trade deals do seem to count as a qualified win for Trump, with other countries giving the US favourable trade terms while accepting US tariffs, said Eswar Prasad, a Cornell University economist. "However, certain terms of the deals, such as other countries' investments in the US, seem more promising in the abstract than they might prove in reality over time.' Trump is also facing a court challenge from states and businesses arguing that the president overstepped his authority by declaring national emergencies to justify the tariffs on most of the world's economies. In May, a federal court struck down those tariffs. And an appeals court, which agreed to let the government continue collecting the tariffs for now, will hear oral arguments in the case Thursday. And he's yet to reach an accord with China which has deftly used the threat of retaliatory tariffs and withholding exports of rare earth minerals that are desperately needed for electric vehicles, computer chips and wind turbines to avoid caving in to Trump's demands. The US and China are talking this week in Stockholm, Sweden. Economists remain sceptical of the impacts for US consumers There is also skepticism that tariffs will produce the economic boom claimed by Trump. Analysts at Morgan Stanley said the most likely outcome is slow growth and firm inflation, but not a recession. After all, the 15 per cent tariffs on the EU and Japan are a slight increase from the 10 per cent rate that Trump began charging in April during a negotiation period. While autos made in the EU and Japan will no longer face the 25 per cent tariffs Trump had imposed, they will still face a 15 per cent tax that has yet to appear in prices at US dealerships. The administration has said the lack of auto price increases suggests that foreign producers are absorbing the costs, but it might ultimately just reflect the buildup of auto inventories to front-run the import taxes. Dealers built stocks ahead of tariff implementation, damping the immediate impact on retail prices. That cushion is starting to wear thin, Morgan Stanley said in a separate note. Our Japan auto analyst notes that as pre-tariff inventory clears, replacement vehicles will likely carry higher price tags. Economist Mary Lovely of the Peterson Institute for International Economics warned of a slow-burn efficiency loss' as US companies scramble to adjust to Trump's new world. For decades, American companies have mostly paid the same tariffs and often none at all on imported machinery and raw materials from all over the world. Now, as a result of Trump's trade deals, tariffs vary by country. US firms have to change their designs and get inputs from different places based on these variable tariff rates,' she said. It's an incredible administrative burden. There's all these things that are acting as longer-term drags on economy, but their effect will show up only slowly.' Mark Zandi, chief economist at Moody's Analytics, said that the United States' effective tariff rate has risen to 17.5 per cent from around 2.5 per cent at the start of the year. I wouldn't take a victory lap,' Zandi said. The economic damage caused by the higher tariffs will mount in the coming months. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
