A week of financial turbulence has seen the cryptocurrency market crash, driven largely by the volatile meme coin sector, while a significant hack and international trade tensions add layers of complexity. Developments surrounding the LIBRA and MELANIA meme coins have notably contributed to this downturn. Meanwhile, President Donald Trump has ordered an investigation into Copper pricing in futures and delivery markets, citing national security concerns. In addition, tensions between the US and Europe rise as digital taxes imposed on US businesses are being scrutinized.
The market crash was exacerbated by a $1.4 billion hack at Bybit. The stolen funds were laundered through Solana meme coins, adding to the chaos in the crypto world. Bitcoin traders faced substantial financial losses, with over $746 million in liquidations recorded in just 24 hours. These events underscore the fragility and unpredictability that currently characterize the cryptocurrency markets.
President Trump's administration has taken a decisive step by instructing the US Commerce Department to launch a probe into Copper markets. This move comes as part of an Executive Order signed by Trump, leveraging US law that permits presidents to bypass traditional Congressional processes to initiate trade investigations. The administration has issued hundreds of such orders since Trump took office, reinforcing its proactive stance on trade and economic issues.
In the realm of international trade, President Trump has made bold claims regarding Canada, asserting that the US does not "need" Canadian crude oil or lumber products. Despite a long-standing history of trade between the two nations, this statement suggests a potential shift in US-Canada trade relations. As part of his broader trade strategy, Trump aims to challenge digital services taxes imposed by European countries, viewing them as a pseudo-tariff on American goods.
The global commodity market is also witnessing significant shifts. A corrective move in Gold prices has pushed the yellow metal beyond the $2,900 mark per ounce troy. This increase is partly attributed to a decline in the US Dollar and US yields, which has bolstered Gold's appeal as a safe-haven asset amid market volatility.