Seeds of Wisdom RV and Economic Updates Monday Afternoon 2-10-25

Feb 10

Good Afternoon Dinar Recaps,

GOLD REACHES ALL-TIME HIGH AS BITCOIN STRUGGLES FOR MOMENTUM AMID MARKET UNCERTAINTY

▪️Gold has surged to a new all-time high, outperforming bitcoin year-to-date, as central banks continued aggressive purchases.

▪️Meanwhile, bitcoin’s price increase of around 5% since the beginning of the year has been marked by volatility, with markets reacting to Donald Trump’s proposed tariffs and broader macroeconomic risks.

Gold reached a fresh all-time high of $2,902 per ounce as of Monday, marking a 17.5% increase since the start of the year.

Gold’s bullish trajectory has been fueled by ongoing central bank purchases, concerns over global trade policies, and investor demand for safe-haven assets, according to a report from the World Gold Council. Its data shows global gold reserves increased by 694 tons in the first ten months of 2024, continuing the record accumulation trend from previous years.

The report said central banks are expected to remain net buyers of gold in 2025, citing de-dollarization efforts and geopolitical risks as key drivers.

Among the largest gold buyers in 2024 were Poland, India, Turkey and China, with net purchases of 89.5 tons, 72.6 tons, 74.8 tons, and 44.2 tons respectively. Western sanctions on Russia’s central bank reserves in 2022 have been cited as a turning point, reinforcing gold’s role as a geopolitical hedge.

The World Gold Council report found that 69% of central banks expect to continue accumulating gold, while 83% of those in industrialized nations cite it as a hedge against inflation and financial instability.

Trump’s tariffs and market impact

Markets remain uncertain after President Donald Trump announced on Sunday a 25% tariff on all steel and aluminum imports, renewing fears of a global trade war. Steel and aluminum stocks surged in premarket trading in New York, with U.S. Steel and Nucor rising 8% and Cleveland-Cliffs gaining 9%. Alcoa also saw a 4% increase.

With Mexico and Canada among the top three U.S. suppliers, the tariffs cast doubt on last week’s temporary delay and could reignite trade tensions. Although stock futures showed optimism on Monday, QCP Capital sees a feedback loop emerging.

"President Trump, highly sensitive to market reactions, is facing a market increasingly calling his bluff. This could embolden him further, adding another layer of volatility," said QCP Capital.

While bitcoin is often discussed as a hedge against monetary and geopolitical uncertainty, its correlation with risk assets has remained elevated, making it susceptible to shifts in market sentiment, according to a Bitwise report on Monday. In contrast, gold’s traditional role as a safe haven has strengthened its appeal amid growing concerns over inflation and trade disruptions.

@ Newshounds News™

Source: The Block

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CFTC ANNOUNCES CRYPTO FRAUD ACTION AFTER ENFORCEMENT PRIORITIES SHIFT

Acting CFTC Chair Caroline Pham announced on Feb. 4 that the commission would essentially end its practice of regulation by enforcement.

The US Commodity Futures Trading Commission (CFTC) announced a consent order charging a New York resident with fraud in one of the agency’s first crypto-related enforcement actions under acting Chair Caroline Pham.

In a Feb. 10 notice, the CFTC said US authorities had charged Rashawn Russell with engaging in a digital assets trading scheme from 2020 to 2022, in which he solicited investors to contribute cryptocurrency to a fraudulent fund.

According to the complaint, Russell misappropriated roughly $1.5 million through the scheme, which had him plead guilty to wire fraud in the US District Court for the Eastern District of New York.

“Russell guaranteed no loss to investors, and in some instances, guaranteed a minimum twenty-five percent return,” said the CFTC complaint filed on Jan. 16. “In reality, Russell intentionally and/or recklessly made false or misleading statements to solicit and retain investors.”

The enforcement case was one of the agency’s first actions since acting Chair Pham announced on Feb. 4 that the CFTC would be restructuring its Division of Enforcement’s priorities to focus on fraud.

The commission said it planned to divide responsibilities for enforcement cases into two task forces focused on retail fraud and “complex fraud and manipulation.”

Crypto enforcement cases going into 2025?

Members at the CFTC elected Pham as acting chair on Jan. 20 amid the inauguration of US President Donald Trump, whom many expect will nominate a commissioner to fill former Chair Rostin Behnam’s seat. Behnam stepped down as chair on Jan. 20 but remained at the CFTC until Feb. 7, leaving the commission one seat shy of a full panel.

During the 2024 fiscal year under Behnam, the CFTC reported more than $17 billion in monetary relief, stemming mainly from the agency’s actions against crypto exchange FTX.

Pham’s announcement regarding the commission’s shift in priorities suggested that the CFTC would focus less on regulating by enforcement for crypto firms handling digital assets considered commodities.

The US Securities and Exchange Commission — the country’s other significant financial regulator overseeing digital assets — announced in January that it would form a crypto task force to develop a regulatory framework.

Trump appointed SEC Commissioner Mark Uyeda as acting chair following the departure of Gary Gensler until the US Senate can consider the nomination of former commissioner Paul Atkins.

@ Newshounds News™

Source: CoinTelegraph

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RIPPLE'S FIRST FORAY INTO PORTUGAL: PARTNERS WITH UNICÂMBIO USING BLOCKCHAIN FOR INSTANT CROSS-BORDER PAYMENTS

Ripple has expanded its European presence by partnering with Unicâmbio, a leading currency exchange provider in Portugal, to facilitate instant cross-border payments between Portugal and Brazil

This collaboration marks Ripple's first foray into the Portuguese market, leveraging Ripple Payments to enable Unicâmbio's corporate clients to transfer funds quickly and efficiently between the two countries.

@ Newshounds News™

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