Altcoins Lead the Latest Crypto Rally

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Alternative digital currencies outperformed Bitcoin in the latest market rebound, with Solana rising as much as 11%, Dogecoin up around 8%, and Avalanche also climbing 8%. The gains come as investors respond positively to signs that U.S. tariffs will be more targeted, reducing the need for safer assets like Bitcoin.

Bitcoin gains, but lags behind

Bitcoin rose as much as 4.3% to $88,786, reaching its highest level in two weeks. However, it remains about 20% below its all-time high set earlier this year. Historically, altcoins tend to outperform Bitcoin during bullish periods, though they are also more vulnerable during market downturns.

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Mixed signals beneath the surface

Despite the green day across crypto markets, some analysts are cautious. Kirill Kretov from CoinPanel noted that the rally may be short-lived, describing it as more of a “relief bounce” than a true momentum shift. While investor interest has returned in the short term, the broader trend remains uncertain.

ETF flows highlight diverging sentiment

One positive development is the return of net inflows into U.S.-listed Bitcoin ETFs after five straight weeks of outflows. On the other hand, Ether-focused ETFs have faced 13 consecutive days of withdrawals, totaling around $415 million. Ether’s price is down roughly 40% over the past year, as concerns over Ethereum’s leadership and strategy weigh on investor confidence.

Dollar Holds Near Five-Month Lows as Fed Signals Rate Cuts

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The U.S. dollar steadied near five-month lows on Thursday after the Federal Reserve indicated that rate cuts are likely later this year, despite uncertainty around U.S. trade policies. The Fed held rates steady at 4.25%-4.50%, with policymakers projecting two quarter-point cuts in 2024. Fed Chair Jerome Powell emphasized the need to wait for more economic clarity before making any moves, reinforcing expectations that the first cut could come as soon as July.

Pound hits four-month high ahead of BoE decision

The British pound touched a four-month high of $1.3015 before settling slightly lower, as traders anticipated the Bank of England’s policy decision. Unlike the Fed and the European Central Bank, the BoE has been slower to cut rates, given that UK inflation remains above 2%. This cautious stance has contributed to the country’s sluggish growth but has supported the pound.

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Yen strengthens, but tariff risks loom

The Japanese yen edged up to 148.46 per dollar, extending its 6% gain this year. While the Bank of Japan kept rates steady, speculation remains that Japan could see further hikes in 2024. However, analysts warn that the yen’s role as a safe-haven asset may be limited in the near term due to potential U.S. tariff risks affecting Japan’s exports.

Global currencies react to economic shifts

Elsewhere, Turkey’s lira remained steady after hitting a record low of 42 per dollar on Wednesday. Meanwhile, the Australian dollar fell 0.31% following weaker-than-expected job data, while the New Zealand dollar dropped 0.5% despite the country emerging from a mild recession. As central banks around the world adjust policies, traders remain focused on how rate cuts, trade tensions, and economic data will shape global currency markets in the coming months.

Xiaomi Hits Record High After Strong Earnings Report

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Xiaomi shares surged to an all-time high on Wednesday after the company reported better-than-expected fourth-quarter earnings. Revenue jumped 48.8% year-over-year to 109 billion yuan ($15.1 billion), surpassing analyst forecasts. Adjusted net profit also saw a strong 69.4% increase, driven by rising global smartphone shipments.

Smartphone and EV growth fuel stock surge

Xiaomi’s smartphone sales climbed 5% globally, solidifying its position as the third-largest smartphone maker. In China, shipments rose 29% to 12.2 million units, highlighting strong domestic demand. The company’s stock jumped 1.9% to a record HK$58.75, continuing its upward momentum from a 3.3% gain on Tuesday before the earnings release.

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Xiaomi’s EV ambitions grow

Beyond smartphones, Xiaomi’s electric vehicle (EV) segment is also expanding rapidly. The company reported 32.1 billion yuan in EV revenue for 2024, delivering over 135,000 SU7 sedans. As a result, Xiaomi has raised its 2025 EV delivery target from 300,000 to 350,000 units, signaling confidence in its growing presence in the EV market.

What’s next for Xiaomi?

With strong growth in both smartphones and EVs, Xiaomi continues to diversify its business while strengthening its global position. Investors will be watching closely to see if the company can sustain this momentum and meet its ambitious 2025 targets.

Indonesia’s Stock Market Tanks 7.1% as Investors Flee

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Indonesian stocks suffered their biggest drop since 2011, plunging 7.1% on Tuesday, as fears over weak consumer spending and government policies triggered a sharp selloff. The Jakarta Composite Index (JCI) dropped so fast that trading was temporarily halted, while the rupiah weakened 0.5% against the dollar, prompting central bank intervention. Bonds also declined as investors rushed to offload riskier assets.

What’s driving the selloff?

Market uncertainty deepened amid poor consumer confidence data and concerns over government spending priorities. President Prabowo Subianto’s push to fund his populist projects has fueled worries about budget deficits and a 20% drop in state revenues. Traders also pointed to speculation over potential changes in the finance ministry, though the government later denied any leadership shifts. The JCI recovered slightly, paring losses to 3.7%, but sentiment remains weak.

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Foreign outflows add to pressure

The selloff adds to months of foreign capital outflows, with investors pulling $1.65 billion from Indonesian stocks so far in 2025. A stronger dollar and rising trade tensions have made riskier markets less attractive, with investors moving toward safe-haven assets. Last week, Goldman Sachs downgraded Indonesian equities, citing weaker earnings growth and a lack of fresh inflows to support the market.

What’s next?

With markets closed from March 28 to April 7, all eyes are on Bank Indonesia’s interest rate decision on Wednesday for potential intervention. If the central bank acts to support the rupiah and stabilize the economy, it could ease market concerns. Until confidence returns, however, Indonesian equities may continue to struggle.

Copper Poised to Hit $10,000 as Market Tightens

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Copper prices are climbing fast, with Citigroup now forecasting the metal will reach $10,000 per ton within the next three months. The recent surge comes as President Trump’s probe into copper imports has triggered a shipping rush ahead of potential tariffs. With global supply struggling to keep pace with demand, copper is seeing strong price support.

Tariff uncertainty keeps markets on edge

Despite fears of a U.S. economic slowdown, industrial metals remain strong, largely due to supply shortages and increasing demand. Traders are watching closely as Trump’s proposed copper tariffs remain under review, with a decision expected after the Commerce Department’s investigation. Until the tariff timeline becomes clearer, tight market conditions will likely keep prices elevated.

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China’s role in the copper market

China, the world’s top copper producer, is also feeling the pressure. Authorities have increased export licenses, but smelters are struggling with negative processing fees due to high competition for raw copper. This supply-side squeeze is adding to global scarcity, further supporting prices.

What’s next for copper?

Copper is currently trading near $9,797 per ton, extending its 12% gain this year. While Citigroup previously expected a pullback to $8,500 per ton, they now see continued strength until U.S. tariffs are officially implemented. Once that happens, demand could weaken, but for now, copper remains in high demand with limited supply—pushing prices higher.

Euro Rallies as Ukraine Accepts Ceasefire

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The euro surged to a five-month high on Wednesday after Ukraine agreed to a month-long ceasefire, paving the way for restored U.S. military aid and intelligence sharing. Investors reacted positively to signs of de-escalation, pushing European equity futures up 1.1% and FTSE futures 0.5%. Meanwhile, the Russian rouble also strengthened, hitting a seven-month high.

Markets react to tariff uncertainty

While hopes of a ceasefire boosted sentiment, uncertainty around U.S. tariffs on steel and aluminium kept markets on edge. The 25% tariffs took effect Wednesday, triggering counter-tariffs from Europe. The reaction was mixed—Asian steel stocks remained steady, but Wall Street struggled, with the S&P 500 closing 0.8% lower after a volatile session. President Trump initially threatened to double tariffs on Canada before backing down, adding to investor unease.

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U.S. growth fears weigh on sentiment

Concerns over U.S. economic growth are growing, with J.P. Morgan estimating a 40% recession risk for the year. Stocks have suffered their heaviest selling in months, and traders are increasingly cautious. Weak financial results from retailers and travel companies added to the pressure—Delta Airlines slashed its profit forecast, while Kohl’s stock plunged 24% after reporting a decline in sales.

What’s next?

Later today, markets will be watching U.S. inflation data and a Canadian central bank meeting for further policy signals. The Canadian dollar briefly hit a one-week low before recovering, while the yen retreated from a five-month high. With global trade tensions and recession fears dominating market sentiment, volatility is likely to remain high in the coming days.

U.S. Stocks Plunge Amid Trade Tensions and Recession Fears

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U.S. stocks took a sharp hit on Monday as mounting concerns over tariffs, a potential government shutdown, and economic slowdown triggered a broad market selloff. The S&P 500 dropped 2.7%, marking its worst one-day decline since December, while the Nasdaq plunged 4%, its biggest single-day loss since September 2022. Investors pulled back as uncertainty over trade policies and economic risks grew.

Tech stocks lead the declines

Technology stocks were hit the hardest, with the tech-heavy Nasdaq entering correction territory, down more than 10% from its December highs. The “Magnificent 7” tech giants, which have led much of the market’s gains, saw steep losses, driven in part by rising Japanese bond yields that led to the unwinding of yen carry trades. Tesla fell 15.4%, its worst day since 2020, while Coinbase and MicroStrategy plunged 17.6% and 16.7%, tracking Bitcoin’s weakness.

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Trade and political uncertainty weigh on markets

Market anxiety is being fueled by ongoing trade disputes, with China’s retaliatory tariffs taking effect, while new U.S. tariffs on base metals are set to be introduced later this week. At the same time, lawmakers in Washington are struggling to pass a spending bill to prevent a government shutdown, adding another layer of uncertainty. HSBC has downgraded U.S. stocks, citing the unpredictability of trade policies as a major risk factor.

What’s next for investors?

The CBOE Volatility Index (VIX), often referred to as the “fear index,” surged to its highest level since August 2024, signaling increased market turbulence. With the S&P 500 now 8.6% below its all-time high, traders are closely watching for signs of stabilization or further downside. As uncertainty around tariffs, interest rates, and economic growth continues, market volatility is likely to remain high in the coming weeks.

Central Banks and Forex: How Their Decisions Affect Your Trades

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If you trade forex, understanding central bank decisions is crucial. These institutions control monetary policy, and their actions can drive major currency movements. Interest rate changes, policy shifts, and economic outlooks all play a role in shaping forex markets. Here’s how it works and what traders should watch for.

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How central banks influence currencies

Central banks, such as the Federal Reserve, the European Central Bank, and the Bank of Japan, use several tools to manage economic stability. These include:

  • Interest rate changes – Raising rates attracts foreign investment, strengthening a currency. Lowering rates makes borrowing cheaper, often weakening the currency.
  • Quantitative easing (QE) – When a central bank injects liquidity into the economy by buying bonds, it increases the money supply and typically lowers the currency’s value.
  • Foreign exchange interventions – Some central banks directly buy or sell their own currency to influence its value, as seen with the Swiss National Bank in the past.
Source: Pixabay

Why forex traders should pay attention

Every central bank meeting is a potential market mover. Even subtle changes in tone can shift sentiment. Traders analyze these decisions to anticipate market direction.

  • Hawkish statements (favoring rate hikes) often strengthen a currency.
  • Dovish statements (favoring rate cuts) tend to weaken a currency.

For example, if the Federal Reserve signals future rate increases, the US dollar often strengthens. If the European Central Bank suggests easing policies, the euro might decline. Traders who understand these signals can position themselves strategically.

Source: Pixabay

What forex traders should watch

To stay ahead in forex trading, it’s important to monitor:

  • Central bank meetings and policy statements – These events provide insights into future monetary policy.
  • Speeches from central bankers – Officials often give clues about upcoming decisions.
  • Inflation and employment reports – These indicators influence central bank actions and currency valuations.

By tracking central bank policies, traders can make more informed decisions and reduce the risks associated with unexpected market moves. Understanding how these institutions operate is essential for navigating the forex market successfully.

Trump’s Crypto Reserve: Game Changer or Just Hype?

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Bitcoin and other major cryptocurrencies saw a sharp rally after President Donald Trump confirmed plans to create a U.S. Crypto Strategic Reserve. The reserve will include Bitcoin, Ethereum, Ripple, Solana, and Cardano, signaling the administration’s push to make the U.S. a global crypto leader. Bitcoin jumped over 10%, hitting $94,821, while Ethereum and other altcoins followed with double-digit gains.

What’s the purpose of a crypto reserve?

A government-backed crypto reserve is unprecedented, raising questions about its role. Supporters argue it could legitimize crypto assets, diversify U.S. reserves, and create new financial opportunities. Critics, however, point out the risks—crypto volatility, regulatory uncertainty, and security challenges. With Trump’s administration still deciding whether to launch it via executive order or Congress, the plan remains in limbo.

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Regulatory uncertainty keeps markets on edge

Despite the price surge, investors remain cautious. Trump has previously made mixed statements on crypto, and the lack of clear implementation details has some traders skeptical. If the reserve requires congressional approval, it could face resistance from fiscal conservatives wary of expanding government spending. On the flip side, an executive order could limit its scale, raising concerns about its long-term viability.

What’s next for crypto?

All eyes are now on the White House Crypto Summit this week, where Trump is expected to reveal more details. If the administration follows through, this could be a historic moment for crypto adoption. However, if the plan stalls, the current price rally might be short-lived. Traders and investors should brace for more volatility as the political and financial landscape around crypto continues to evolve.

Dollar Stumbles as Trade War Heats Up

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The U.S. dollar is struggling, hovering near a three-month low as fresh tariffs from Washington triggered countermeasures from China and Canada. With the global economy facing rising uncertainty, investors are shifting away from the greenback, fearing that escalating trade tensions could slow growth. Meanwhile, China’s annual National People’s Congress (NPC) kicked off, reaffirming its 5% economic growth target for 2025 while increasing fiscal support to counteract the tariff impact.

Euro and Sterling gain ground

As the dollar faltered, the euro climbed to a nearly four-month high, reaching $1.0637, following Germany’s move to establish a €500 billion infrastructure fund. Sterling also held strong near a three-month peak at $1.2794, as investors found confidence in the U.K. economy. These currency gains come amid mounting concerns over the U.S. economy, with markets reacting to uncertainty surrounding trade policies.

Source: Pixabay

Global markets react

Stock markets were mixed, with Hong Kong’s Hang Seng jumping 2.1%, while Australian stocks fell 0.7%. Japan’s Nikkei managed a small 0.4% gain after fluctuating throughout the session. Meanwhile, crude oil prices plunged to six-month lows, and bitcoin stabilized around $87,500 after a volatile week. The uncertainty in the forex and equity markets highlights how investors remain cautious as global trade tensions deepen.

What’s next for the dollar?

With the U.S. imposing higher tariffs and key trading partners retaliating, the dollar faces ongoing pressure. The U.S. Dollar Index is sitting at 105.55, after a sharp two-day drop of 1.9%. As markets digest the latest economic and geopolitical shifts, traders are watching for signs of whether the dollar will rebound—or if more downside is ahead.