US President Donald Trump has announced a proposed reserve fund for digital assets, including bitcoin and ether, sparking enthusiasm among crypto fans. However, analysts are cautious about the funding mechanism, given the government’s $36 trillion of debt.
The proposed fund would include five cryptocurrencies: bitcoin, ether, XRP, solana, and cardano. Bitcoin is up 10%, while ether has jumped 13%. Details on how the reserve will be funded are unclear, but Trump may outline them at Friday’s White House Crypto Summit.
Tariffs imposed on Mexico and Canada remain uncertain. The US Commerce Secretary initially stated that tariffs would go into effect on Tuesday, but Trump’s decision is yet to be confirmed. There are suggestions that Mexico and Canada might agree to impose their own tariffs on Chinese imports or delay the levies until April 1.
The uncertainty surrounding tariffs adds to market volatility. Recent US economic data has surprised on the downside, leading some analysts to predict a negative impact on consumption. The threat of tariffs saw imports surge in January, lifting the US trade deficit to its highest ever recorded level.
Markets are now focused on Friday’s payrolls report and potential responses from Beijing. If tariffs go ahead, China’s National People’s Congress may announce new stimulus measures worth $274 billion-$412 billion. Key developments this week include EU flash CPI for February, European PMI data, US ISM survey for February, speeches by ECB Supervisory Board Chair Claudia Maria Buch, and Fed Reserve Bank of St Louis President Alberto Musalem.
Source: https://finance.yahoo.com/news/trump-flags-crypto-mum-funding-053351855.html