President Donald Trump is to begin the biggest gamble of his second term – ‘Liberation Day’ wagering that broad-based global hitting tariffs on imports will instigate a new era for the U.S. economy.
The concern right now is no one outside the administration knows quite how those goals will be achieved, and what will be the price to pay.
Basically, tariffs are a tax on imports and, theoretically, are inflationary. In practice, though, it doesn’t always work that way.
The U.S. economy is showing potential signs of stagflation where growth is slowing, and inflation is proving stickier than expected.
Trump’s Liberation Day is here – we will see what that actually means in practice.
OpenAI on Monday 31st March 2025 announced it had closed its $40 billion funding round, the most ever raised by a private tech company.
The deal values OpenAI at $300 billion, including the new capital.
The round includes $30 billion from SoftBank and $10 billion from a syndicate of investors.
OpenAI is now more valuable than Chevron.
The generative AI market is projected to exceed $1 trillion in revenue within the next decade. Companies such as Google, Amazon, Anthropic, and Perplexity are rapidly unveiling new products and features as competition to develop ‘AI agents’ intensifies.
The cryptocurrency market has been rocked by significant declines in two of its flagship assets, Bitcoin and Ether.
This downturn reflects mounting concerns over broader economic challenges, including inflationary pressures and uncertainties surrounding Trump’s global trade tariffs.
Snapshot data from CMC
Bitcoin, often seen as a digital gold and a hedge against traditional financial instability, saw its value dip below $80,000. Similarly, Ether, the second-largest cryptocurrency by market capitalisation, tested the $2,100 threshold, shaking investor confidence.
Cryptocurrency fear and greed index chart from CMC
Cryptocurrency fear and greed index from CMC
The decline comes as central banks continue to grapple with persistent inflation, leading to speculation about further interest rate hikes. These economic conditions have raised fears that tighter monetary policies could dampen the speculative fervour that has long driven crypto markets.
In parallel, ongoing uncertainties about global trade tariffs have added another layer of complexity. Concerns about supply chain disruptions and escalating trade tensions have created a cautious environment for investors, spilling over into the volatile cryptocurrency sector.
While cryptocurrencies are no stranger to price swings, the current drop underscores their vulnerability to macroeconomic trends. As investors await clarity on inflation and tariff policies, the market could remain turbulent in the near term.
The resilience of Bitcoin and Ether will likely be tested as they navigate these economic headwinds.
Gold, however, has recently touched new all-time highs.
