Anndy Lian

Anndy Lian
Exponential currency debasement: ‘You don’t own enough crypto, NFTs’

Cryptocurrencies and non-fungible tokens (NFTs) can help investors protect their eroding purchasing power during an era of exponential currency debasement, according to analysts and industry leaders.

Investing in digital assets is becoming increasingly important in the “world of the exponential age and currency debasement,” according to Raoul Pal, founder and CEO of Global Macro Investor.

“You don’t own enough crypto. When you do, you don’t own enough NFT’s, as art is upstream of wealth. Both will never be this cheap again,” Pal said.

NFTs are “the single best long term store of wealth I know and you get to buy it before network effects kick in,” he added in another response.

“There is some validity to the statement that NFTs, and in extension art, become a vehicle for the wealthy once a certain level of wealth is reached,” wrote Nicolai Sondergaard, research analyst at Nansen, calling it a “natural move” for asset diversification.

“For traders and investors, further down the wealth curve, NFTs are partially about speculating on future returns,” he told Cointelegraph, adding that NFTs also benefit from the allure of strong communities, beyond just wealth creation.

Related: German gov’t missed out on $2.3B profit after selling Bitcoin at $57K

Art NFTs may see a resurgence as “digital ownership gains acceptance among younger, tech-savvy cohorts,” if collections manage to move past the “speculative fervor,” according to Anndy Lian, author and intergovernmental blockchain expert.

Still, Lian said broader adoption depends on blockchain networks improving scalability and security to “instill confidence.” He added that art NFTs “must transcend hype, anchoring value in cultural significance or utility.”

Some digital artists made millions of dollars through NFTs. Digital artist Mike Winkelmann, also known as Beeple, auctioned his “Everydays: The First 5000 Days,” NFT artwork for a record-breaking $69 million in March 2021.

Meanwhile, the largest NFT collections continue to lack upside momentum, unable to recover toward their 2021 highs.

CryptoPunks, the largest NFT collection by market capitalization, is currently trading at a floor price of 46 Ether, 59% down from its peak of 113.9 ETH, recorded on Oct. 9, 2021, NFTpricefloor data shows.

NFT market set for recovery in early 2026, after Bitcoin cycle top

Despite the temporary lack of interest, NFTs could be poised to see more momentum after the profits from Bitcoin’s cycle top start rotating into other digital assets.

“That likely puts the peak of the NFT market in Q1 2026, but don’t expect a repeat of the 21/22 euphoria that we saw in NFTs,” according to Yehudah Petscher, strategist at CryptoSlam NFT data platform and SlamAI.

“We’re likely an entire cycle away from NFTs having a parabolic run,” Petscher told Cointelegraph, adding:

“There is a perfect storm brewing for 2030: BTC at $1 million, a matured metaverse, AI reshaping labor economics (whether through universal basic income or universal high income, falling production costs, etc), AR/VR adoption, and NFT ownership equaling ownership of a brand.”

However, the previous NFT bull market was driven largely by metaverse speculation and wealthy traders, Petscher noted — factors that are mostly absent in the current cycle.

 

Source: https://cointelegraph.com/news/currency-debasement-own-enough-crypto-nfts

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Anndy Lian
Global markets react to Trump’s crypto dinner and Bitcoin’s record high

Global markets are navigating a labyrinth of economic, political, and monetary challenges, each influencing investor sentiment and market dynamics profoundly. Following a rally across the curve on Thursday driven by moderating fiscal concerns, the recent stabilisation of US Treasuries suggests a tentative calm amidst a broader storm.

US equity indices reflected this cautious mood, with the S&P 500 and Dow Jones remaining flat, while the Nasdaq Composite eked out a modest gain of 0.3 per cent. Asian equity indices were mostly higher in early trading, and US equity futures hinted at a slight opening increase of 0.1 per cent, signalling a fragile optimism.

However, beneath this surface calm lies a web of anxieties, centred primarily on the fiscal health of the United States, the world’s largest economy. Moody’s Ratings’ downgrade of the US credit rating last week has intensified these concerns, serving as a stark warning about the nation’s mounting debt. Adding fuel to the fire, President Donald Trump’s tax bill, narrowly passed by the House, has raised fears of ballooning deficits.

Meanwhile, the Federal Reserve’s potential policy shifts and a dramatic surge in Bitcoin trading volumes introduce additional layers of complexity. This article explores these interconnected developments, offering a detailed examination of their implications for global markets and a perspective on the road ahead.

The bond market has been a focal point of investor unease this week, acting as a barometer of confidence in the US economy. US Treasuries initially rallied as investors sought safety amid fiscal uncertainties, driving yields lower across the curve. However, this safe-haven surge was fleeting, as renewed worries about the US fiscal trajectory triggered volatility.

Moody’s downgrade of the US credit rating from its top tier was a seismic event, underscoring the risks posed by a national debt that now exceeds US$36 trillion—a figure that has swelled due to years of budget deficits. The passage of Trump’s tax bill, which promises substantial tax cuts without offsetting spending reductions, has deepened these concerns.

Critics warn that this legislation could add trillions to the deficit over the next decade, potentially pushing the debt-to-GDP ratio to unsustainable levels. The Congressional Budget Office estimates an additional US$5.2 trillion deficit by 2035 if key provisions are extended, a projection that has rattled investors. This perceived fiscal recklessness prompted a sell-off in Treasuries, driving yields higher as investors demanded greater compensation for risk.

The 30-year Treasury yield briefly surpassed five per cent, a threshold not crossed in over a year, before moderating slightly. Rising yields increase borrowing costs for the government and ripple through the economy, impacting mortgage rates, corporate borrowing, and consumer spending, all of which could amplify economic pressures in an already uncertain environment.

Against this backdrop of fiscal turbulence, the Federal Reserve’s stance has taken on heightened significance. Governor Christopher Waller recently offered a glimpse into the central bank’s strategy, suggesting that interest rates could be lowered in the second half of 2025 if the Trump administration’s tariffs on US trading partners stabilise at around 10 per cent.

This conditional outlook reflects the Fed’s vigilance regarding trade policies that could stoke inflation by raising the cost of imported goods. Lowering rates could soften the economic blow of tariffs, making borrowing cheaper and spurring investment and consumption. Yet, this approach is not without risks.

Rate cuts in an economy already grappling with inflationary pressures—evidenced by rising global commodity prices—could overheat markets, complicating the Fed’s dual mandate of fostering maximum employment and price stability. The US Dollar Index (DXY) has felt the strain, consolidating weekly losses as investors weigh the prospects of rate cuts and fiscal instability.

A weaker dollar could bolster US exports by enhancing competitiveness but also inflate import costs, potentially feeding into domestic price increases. This tightrope walk highlights the Fed’s challenge: supporting growth without igniting an inflationary spiral, all while fiscal policy threatens to undermine monetary efforts.

Beyond the US, inflationary pressures are gaining momentum globally, adding another dimension to the market narrative. In Japan, the key inflation gauge has surged at its fastest pace in two years, propelled by escalating food and energy costs. This uptick has bolstered the yen slightly, as markets speculate that the Bank of Japan may tighten its ultra-accommodative monetary stance to curb price rises. Japan’s inflationary trend mirrors a broader global pattern, fuelled by supply chain bottlenecks, geopolitical uncertainties, and the lingering effects of post-pandemic recovery.

Europe, too, is contending with rising prices, prompting discussions at the European Central Bank about policy adjustments. This synchronised inflationary wave suggests that central banks may need to align their responses to prevent destabilising economic disparities. In the commodities sphere, gold has held firm, trading just below US$3,300 per ounce after a slight 0.6 per cent dip, reinforcing its status as a safe-haven asset amid US fiscal jitters.

Conversely, Brent crude oil prices slipped 0.7 per cent to around US$85.50 per barrel, reflecting a de-escalation of tensions between Israel and Iran and anticipation of an OPEC+ output increase in July. While lower oil prices might ease some inflationary strain, gold’s resilience signals persistent investor caution, painting a mixed picture of risk appetite and economic stability.

Amid these conventional market currents, the cryptocurrency sector has emerged as a striking counterpoint, with Bitcoin stealing the spotlight. The leading virtual currency soared to a record high near US$112,000 on Thursday, buoyed by a dramatic surge in trading activity.

Bitcoin futures trading volume spiked to over US$203 billion on Wednesday—the third-highest daily total in 2025—while spot trading volume hit a two-day peak of US$150 billion, the highest in nearly two months, according to CoinMarketCap. Several forces are driving this frenzy. The US fiscal concerns and a softening dollar have pushed investors toward alternatives perceived as hedges against inflation and currency depreciation, with Bitcoin often likened to “digital gold.”

Additionally, the low-interest-rate environment has fuelled a quest for yield, drawing capital into riskier assets like cryptocurrencies. The timing of Bitcoin’s ascent coincides with a high-profile event: President Trump’s dinner for top holders of his TRUMP meme coin, held Thursday at the Trump National Golf Club in Washington, D.C. This gathering, potentially hosting up to 220 attendees, with the top 25 earning a White House tour, has sparked intrigue and controversy.

Bloomberg reports that 19 of these top 25 holders are based outside the US, raising national security and ethical questions about foreign influence in a politically charged crypto venture. Notable attendees include Justin Sun, founder of the Tron blockchain, who has clashed with US regulators over allegations of unregistered securities sales and market manipulation, and who claims to be the top TRUMP holder after a US$75 million investment in the Trump-backed World Liberty Financial platform.

Other guests, such as Singapore’s MemeCore and an Australian crypto entrepreneur, highlight the global reach of this phenomenon. Technologically, Bitcoin’s momentum is robust: the hourly MACD is accelerating in the bullish zone, and the RSI exceeds 50, signaling strong upward pressure.

Support levels at US$110,000 and US$108,200 provide a cushion, while resistance at US$112,000 and US$113,200 looms as the next test. This technical strength, coupled with macroeconomic and political catalysts, underscores Bitcoin’s growing role in the financial ecosystem.

Reflecting on these developments, the current state of global markets reveals a landscape fraught with both peril and potential. The US fiscal situation, exacerbated by Moody’s downgrade and Trump’s tax bill, has cast a long shadow over investor confidence, evident in the bond market’s turbulence and the dollar’s fragility. The Federal Reserve’s hinted rate cuts introduce a wildcard, balancing tariff-driven inflation risks against growth support, while global inflation—exemplified by Japan’s surge—complicates the monetary picture.

Commodities offer a split verdict: gold’s steadfastness betrays lingering fears, while oil’s retreat hints at easing pressures. Bitcoin’s meteoric rise, amplified by trading volumes and political spectacle, signals a shift toward alternative assets, yet its volatility and the ethical quandaries of events like Trump’s dinner temper enthusiasm with caution.

For investors, this environment demands agility—diversifying into safe havens like gold or even cryptocurrencies might mitigate risks, but the latter’s regulatory and security uncertainties warrant restraint.

Looking forward, the trajectory of US fiscal policy, the pace of global inflation, and the maturation of crypto markets will shape the next chapter. For now, global finance remains a high-stakes puzzle, blending opportunity with profound challenges and requiring sharp analysis and measured action from all players involved.

 

Source: https://e27.co/global-markets-react-to-trumps-crypto-dinner-and-bitcoins-record-high-20250523/

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Anndy Lian
Crypto thrives as traditional markets falter: What’s driving the divergence?

The recent retreat in global risk sentiment, spurred by escalating concerns over the rising US deficit, has sent ripples across various asset classes, from US equities and Treasuries to commodities and cryptocurrencies, painting a vivid picture of a market grappling with uncertainty.

The implications are profound, and the data tells a compelling story of shifting investor priorities and economic pressures. Let’s dive into this multifaceted topic, exploring how the US deficit is reshaping global markets and what it means for the future.

The growing unease about the US deficit is at the heart of this shift in risk sentiment. For months, economists and investors have voiced concerns about the ballooning federal deficit, but recent events have brought these worries to a boiling point.

A Bloomberg report from May 22, 2025, underscores this tension, noting that a proposed tax bill could add trillions to the deficit, further straining an already stretched fiscal framework. This has rattled investors, who fear that unchecked borrowing could lead to higher interest rates, persistent inflation, or even a loss of faith in the US economy’s long-term stability.

The bond market, often a bellwether for such concerns, is flashing warning signs—most notably through a weak 20-year Treasury auction and a pronounced bear steepening of the yield curve. This dynamic, where long-term yields are rising faster than short-term ones, reflects a market bracing for tougher times ahead.

Take US equities, for instance. The S&P 500, a broad barometer of American corporate health, plummeted by 1.6 per cent on Wednesday, marking its worst day in a month. The Dow Jones Industrial Average and Nasdaq Composite followed suit, shedding 1.9 per cent and 1.4 per cent, respectively.

This wasn’t a isolated stumble but a broad-based sell-off, signaling that investors are pulling back from riskier assets. Why? The rising deficit fuels fears of higher borrowing costs down the line, which could squeeze corporate profits and dampen economic growth.

Higher Treasury yields also play a role—when bonds offer better returns, stocks lose some of their luster, especially for those seeking steady income. It’s a classic flight from risk, and the numbers bear it out: the equity market is feeling the heat of this deficit-driven anxiety.

The US Treasury market offers even more insight into this unfolding narrative. On Wednesday, Treasuries experienced an aggressive bear steepening, a term that might sound arcane but simply means that long-term interest rates are climbing faster than their short-term counterparts.

Yields on tenors beyond 10 years surged by more than 10 basis points, while the 2-year yield, tethered to expectations of Federal Reserve policy, edged up a more modest 4.9 basis points to 4.019 per cent. This divergence is telling. The Fed might still be poised to cut rates in the near term—hence the relatively stable short-end yields—but the long end of the curve is screaming concern about the future.

Investors are demanding higher compensation for locking their money into longer-dated Treasuries, likely anticipating inflation or a flood of government borrowing to finance the deficit. The weak 20-year auction only amplifies this sentiment; when demand for these securities falters, it’s a clear sign that confidence is waning.

Interestingly, the US Dollar Index didn’t follow the script you might expect. Despite rising Treasury yields, which typically bolster the dollar by attracting foreign capital, the index fell 0.5 per cent to 99.60, marking its third consecutive day of declines. This counterintuitive move suggests that deficit worries are overshadowing the yield advantage.

If investors are losing faith in the US economy’s fiscal health, the dollar’s appeal dims, even with higher rates on offer. It’s a fascinating twist—while yields climb, the currency weakens, hinting at deeper structural concerns that could ripple globally.

Amid this turmoil, gold has shone brightly, rising 0.8 per cent to close at US$3,315 per ounce—its third straight day of gains. This isn’t surprising. Gold thrives in times of uncertainty, serving as a safe haven when faith in paper assets falters.

With the deficit stoking fears of inflation and economic instability, investors are flocking to this timeless store of value. It’s a hedge against the unknown, and right now, there’s plenty of that to go around. The data backs this up: gold’s steady ascent mirrors the retreat in risk sentiment, a textbook response to the current climate.

Oil, on the other hand, tells a different story. Brent crude slipped 0.7 per cent to settle at US$65 per barrel, pressured by a report showing US crude inventories at their highest since July. This drop reflects a broader worry: if the global economy slows under the weight of deficit-driven uncertainty, demand for oil could soften.

Rising inventories suggest an oversupply might already be in play, compounding the downward pressure on prices. It’s a stark contrast to gold’s rally—while one asset benefits from fear, another suffers from faltering growth expectations.

Beyond the US, global responses are adding layers to this saga. Bank Indonesia, for example, cut its benchmark interest rate by 25 basis points to 5.50 per cent, aligning with market expectations. The Deposit Facility and Lending Facility rates also dropped to 4.75 per cent and 6.25 per cent, respectively.

This move could be a preemptive strike to bolster domestic growth amid a shaky global backdrop, though it risks weakening the rupiah if risk sentiment continues to sour. It’s a delicate balancing act—stimulus now might cushion the blow, but it could also expose vulnerabilities later. For now, it’s a sign that central banks worldwide are watching the US deficit drama closely, adjusting their own playbooks accordingly.

Asia’s equity markets offer a mixed picture. While Wednesday saw broadly positive performances, early Thursday trading tracked Wall Street’s decline, suggesting the US slump is casting a shadow. Yet US equity index futures hint at a potential rebound at the open, a glimmer of optimism amid the gloom. Markets are volatile, reacting to each new headline about the deficit and its fallout. Investors are on edge, and rightly so—the stakes are high.

Then there’s the cryptocurrency angle, which has turned heads with its defiance of traditional market trends. Bitcoin rocketed to US$110,730 on Wednesday, a fresh all-time high, before settling just below US$110,000. This surge, a 47.82 per cent climb from its April 6 low of US$74,434, coincided with Bitcoin Pizza Day—a nostalgic nod to May 22, 2010, when Laszlo Hanyecz traded 10,000 Bitcoins for two pizzas, then worth US$41.

Today, those coins would fetch millions, a testament to Bitcoin’s meteoric rise. The timing feels symbolic, but the rally’s roots run deeper. Strong buying pressure and a shrinking supply on exchanges suggest investors are piling in, viewing Bitcoin as a hedge against the chaos in traditional markets.

Ethereum’s story echoes this resilience. Up two per cent in Thursday’s early Asian session, it reclaimed the US$2,500 level, buoyed by whale buying. Exchange supply has dwindled to 18.73 million ETH, the lowest since August 2024, with over 1 million ETH flowing to private wallets since late April.

This hoarding signals confidence in future gains, and it’s paying off—Ethereum’s upward trajectory holds firm despite the broader market wobble. Unlike equities or Treasuries, these digital assets seem to thrive on uncertainty, drawing in those disillusioned with fiat systems strained by deficits and debt.

So, what does it all mean? The rising US deficit has unleashed a cascade of effects, eroding global risk sentiment and reshaping asset valuations. Equities and Treasuries are reeling, gold is basking in safe-haven demand, and oil is buckling under growth fears.

The dollar’s weakness underscores a crisis of confidence, while cryptocurrencies like Bitcoin and Ethereum soar as alternative refuges. It’s a tale of divergence—traditional markets buckle under fiscal strain, while digital ones chart their own course.

Looking ahead, the implications are vast. If the deficit continues to swell, Treasury yields could climb further, squeezing equities and amplifying economic headwinds. Gold might keep rising, but oil could languish if growth stalls. Central banks like Bank Indonesia will face tough choices, balancing stimulus with stability.

And cryptocurrencies? Their trajectory hinges on whether they can sustain this momentum as viable hedges. For investors, the key is vigilance—understanding how these pieces fit together will be crucial in navigating what’s shaping up to be a turbulent road.

In my view, this moment is a wake-up call. The US deficit isn’t just a domestic issue; it’s a global fulcrum, tilting markets in ways we’re only beginning to grasp. The data—from yield curves to crypto wallets—paints a picture of a world in flux, where old assumptions are tested, and new opportunities emerge.

I’ll keep digging, tracking the numbers and the narratives, because this story is far from over. For now, the retreat in risk sentiment is a stark reminder: in finance, as in life, uncertainty is the only certainty.

 

Source: https://e27.co/crypto-thrives-as-traditional-markets-falter-whats-driving-the-divergence-20250522/

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