Global markets began the trading week on edge, particularly in crypto, as U.S. President Donald Trump reignited trade tensions by threatening steep new tariffs—30% on the European Union and Mexico—following last week’s 25% and 35% levies on Japan and Canada. Combined with the Federal Reserve’s hawkish tone and escalating geopolitical tensions, this has injected fresh uncertainty into markets.
Despite the cautious mood, strong institutional interest drove Bitcoin (BTC/USD) toward a fresh record near $123,000, while spot Gold (XAU/USD) climbed to a three-week high around $3,370. Meanwhile, equities across Asia-Pacific and Europe/UK edged lower, and U.S. stock futures traded slightly in the red ahead of the Wall Street open.
Investor nerves are also heightened ahead of this week’s key U.S. inflation data, with the Consumer Price Index (CPI) in focus. With supply chain concerns tied to tariffs and global conflicts, traders are turning to traditional havens—like gold—and increasingly, to Bitcoin, amid growing optimism for regulated crypto growth.
Geopolitical risks remain front and center. Despite talk of a ceasefire, Israel-Iran tensions persist, while the U.S. is pressing allies to ramp up arms support for Ukraine. Reports suggest Trump is planning a major policy shift, including long-range missile deliveries to Ukraine. French President Emmanuel Macron added to the urgency, warning that European freedom faces its biggest threat since World War II and calling for a defense spending surge.
Back in the U.S., Trump’s repeated calls for rate cuts were largely dismissed in the latest Fed minutes. Policymakers reaffirmed their data-driven stance, with Fed official Austan Goolsbee cautioning that new tariffs could delay any rate reductions.
In Asia, China’s June trade data surprised to the upside, with stronger exports driving a larger-than-expected surplus. Bloomberg estimates show China likely beat its Q2 growth target, which may prompt Beijing to pause stimulus efforts if U.S.-China trade talks progress.
Kicking off “Crypto Week,” attention turns to Capitol Hill, where lawmakers will debate the CLARITY Act, GENIUS Act, and the Anti-CBDC Surveillance State Act—bills that could mark a pivotal moment for crypto regulation. Alongside this, key events such as Tuesday’s U.S. CPI, China’s Q2 GDP release, and further Trump tariff updates will keep markets volatile across equities, bonds, and crypto.
Moving on, if Trump softens his tariff stance and U.S. inflation data shows signs of cooling, Wall Street optimism may rebound—potentially weakening the U.S. dollar and boosting Gold and Bitcoin further.
