Market Recap: A Volatile Week in Forex, Gold, and Crypto
Forex & Gold Markets: Dollar Strength, Fed’s Cautious Approach and Pressures
- Gold (XAU/USD) slipped on Friday, closing at $3,019 (-0.81%), as traders locked in profits. Despite this dip, gold remains on track for weekly gains, boosted by inflation concerns and geopolitical instability.
- The U.S. Dollar Index (DXY) gained 0.24%, climbing to 104.05, supported by higher Treasury yields and Federal Reserve comments opposing early rate cuts.
- U.S. inflation forecasts were revised, driving speculation that the Fed may delay rate cuts into 2025, further strengthening the dollar.
Geopolitical risks are also escalating, with Israel intensifying attacks on Gaza after breaking a two-month ceasefire. This heightened uncertainty is causing defensive plays in the forex and commodities markets.
Crypto Market Recap: Bitcoin Holds Strong, Altcoins Struggle
- Bitcoin (BTC) Bitcoin price was around $84,500 on Friday, recovering nearly 3% this week. If it finds support at the 200-day EMA, it may retest the key level of $90,000. The MACD indicator showed a bullish crossover last week, signaling a potential upward trend with rising momentum.
- Ethereum (ETH) held steady but faced selling pressure due to hacking concerns after Lazarus’ Bybit exploit, which added to the industry’s ongoing security fears.
- Altcoins experienced mixed performances, with speculative assets like Dogecoin (DOGE) rallying after Musk engaged in meme coin discussions on X (formerly Twitter).
Investors remain cautious as regulatory developments and institutional strategies shape the next phase of crypto adoption.
North Korea-Linked Lazarus Group Now Holds More Bitcoin Than Tesla
Tesla Falls Behind a Cybercriminal Group in Bitcoin Holdings as Trump Pushes for U.S. Crypto Leadership
According to data from Arkham Intelligence, the Lazarus Group, a hacking group closely associated with North Korea, holds more bitcoin (BTC) than Tesla (TSLA), the electric car manufacturer led by Elon Musk.
Last month, the Lazarus Group targeted the crypto exchange Bybit and stole $1.4 billion in ether (ETH). Recently, some of the stolen money was turned into Bitcoin. Bybit’s CEO, Ben Zhou, confirmed that 12,836 BTC had been distributed across 9,117 different wallets.
Tesla has held onto its Bitcoin assets for four years, making it the fourth-largest publicly traded firm in BTC holdings. This is especially significant in contrast to the Lazarus Group, particularly after President Trump supports cryptocurrency. He intends to position the U.S. as the “undisputed Bitcoin superpower.”
Observing how Tesla and other American firms react to this scenario will be intriguing. Currently, the U.S. government possesses 198,109 BTC, valued at over $16 billion, acquired from confiscated assets, which Trump refers to as a strategic reserve.
Tesla’s Position in Bitcoin: A Corporate Stalemate?
Despite its impressive 11,509 BTC holdings, Tesla has largely remained silent on its Bitcoin strategy. The company purchased $1.5 billion worth of Bitcoin in February 2021 but sold 75% of its holdings in 2022, citing liquidity and macroeconomic concerns.
Now, the fact that a state-backed cybercriminal group holds more BTC than one of the world’s largest corporations raises red flags. Many investors wonder: Will Wiinvestors or other major companies increase their Bitcoin holdings to maintain their influence in the market?
Trump’s “Liberation Day” Tariffs: Potential Impacts on Global Trade
As international trade tensions rise, Trump prepares a “Liberation Day” tariff announcement on April 2, unveiling so-called reciprocal tariffs he sees as retribution for tariffs and other barriers from other countries, including longtime U.S. allies. While the announcement would remain a significant expansion of U.S. tariffs, it’s shaping up as more focused than the sprawling, fully global effort Trump has otherwise mused about, officials familiar with the matter say. This “Liberation Day” plan will include widespread reciprocal tariffs but may exclude certain nations. The tariffs aim for immediate effect and will likely strain relations with allies, provoking potential retaliation and escalating tensions. Only countries without tariffs on the U.S. and with whom the U.S. has a trade surplus will be excluded. The main goal is to bolster American producers and industries, but the threat of retaliation is causing market uncertainty, leading investors to be cautious.
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