Global Economic Shift: Bitcoin & Beyond

Hello everyone! This is Empathy Keeper from 'The Beginning of Empathy.' I hope you've all started your week with great energy. Today, we're going to dive deep into the news from 24 countries around the world from the past week, all through the lens of 'Empathy.'

While these stories might seem to originate from distant corners of the globe, you'd be surprised to discover the common threads that run through them – shared challenges and opportunities that we can all connect with. We'll specifically focus on economic search trends that have been heating up on platforms like Google, to understand what people worldwide are interested in and the changes they're experiencing.

From the record-breaking surge in the virtual asset market to the struggles of everyday people grappling with high inflation and economic instability, and the unpredictable waves of international trade disputes. In the midst of all these upheavals, what common ground can we find? And how might these trends shape our future? I hope this becomes a time for collective insight.

So, are you ready to embark on a journey to the heart of the global economy with me?

Over the past week, the keyword that undoubtedly dominated global discussions was 'Bitcoin.' It soared to the top of search trends in numerous countries, including the United Kingdom, Brazil, Argentina, Poland, Belgium, the United States, Australia, Taiwan, Indonesia, India, Russia, Türkiye, Canada, Mexico, Italy, Switzerland, Germany, France, and the Netherlands. Bitcoin impressively broke the 120,000 dollar mark, setting new all-time highs day after day.

Several common factors have converged to fuel this explosive ascent. Firstly, the current U.S. President Donald Trump’s administration's supportive stance on virtual currencies has had a significant impact. With President Trump referring to himself as a 'virtual asset president,' pushing for policy reforms, and reportedly signing executive orders to build strategic Bitcoin reserves, investor sentiment has been robustly revitalized. The 'Crypto Week' event in the U.S. Congress, fostering active discussions on establishing a regulatory framework, further boosted market expectations. The passage of stablecoin regulation bills, like the 'Genius Act,' amplified hopes for the virtual asset market's integration into mainstream finance.

Secondly, a massive inflow of institutional investors propelled the price surge. Consistent capital infusions into Bitcoin Exchange Traded Funds, alongside vigorous purchasing by global institutional investors like BlackRock, were key drivers. Companies such as MicroStrategy and those in the gaming retail sector adding Bitcoin to their balance sheets, and even a media technology group reportedly seeking approval for a virtual asset blue-chip ETF, signal an acceleration of virtual assets' absorption into mainstream financial markets. Analysis suggesting some central banks are beginning to view Bitcoin as a long-term reserve asset underscores just how much the status of virtual assets has transformed.

This Bitcoin rally had positive ripple effects across other major altcoin markets, including Ethereum, XRP, Solana, and Dogecoin. XRP, in particular, saw notable gains, bolstered by technical breakthroughs and accumulation by large institutional investors. Furthermore, low-priced altcoins like Sui and Avalanche attracted investors seeking the next big opportunity. However, as noted in reports from Germany, unlike Bitcoin's strong performance, an 'altcoin season' has yet to fully arrive. This suggests that differences in regulated channel accessibility might affect the altcoin market, warranting continuous observation.

The rise in Bitcoin's price also impacted national asset management in countries like El Salvador and Indonesia, leading to unrealized gains. The emergence of cloud mining platforms is also noteworthy. Platforms such as RDGMining and PFMCrypto are opening new avenues for the general public to easily participate in the digital asset market, enabling convenient and stable virtual asset mining without expensive equipment. These technological advancements demonstrate that virtual assets are evolving beyond mere speculative tools to become a new form of economic activity.

Simultaneously, countries worldwide are facing a common challenge: economic uncertainty. News from the UK about water supply restrictions due to dryness, Brazil's high inflation and weakened currency, Carrefour's withdrawal from Argentina coupled with high unemployment, Japan's stock market crash predictions, Türkiye's household debt issues, and the bankruptcy of a well-known fashion brand in the Netherlands vividly illustrate the economic hardships faced by many households and businesses globally. Governments are striving to alleviate these difficulties through various policy efforts, such as supporting small business owners (South Korea), increasing food voucher values (Belgium), and expanding pension payments (Spain, Poland).

Current U.S. President Donald Trump's 'tariff policies' are adding significant uncertainty to the global trade environment. Threats of 50% tariffs on Brazilian products, 30% tariffs on Mexican exports, and a letter proposing 30% tariffs on the European Union are directly impacting the economies of many nations. The German Chancellor's concern that U.S. tariff policies could be 'a fatal blow,' and Russia's escalating trade dispute with Azerbaijan, demonstrate that trade conflicts can intensify diplomatic tensions beyond economic impacts.

These protectionist moves, coupled with global supply chain restructuring, are increasing inflationary pressure and delaying corporate investment decisions. The Milan stock exchange in Italy reacted sensitively to U.S. tariff announcements, showing volatility, and the Swiss stock market was also affected. Ironically, this instability in traditional financial markets has highlighted the appeal of virtual currencies like Bitcoin, spurring investment in them as alternative assets. This strongly suggests the necessity of diversifying asset portfolios in an unstable global economy.

The wave of technological revolution, particularly Artificial Intelligence, is profoundly affecting industries and employment markets worldwide. Nvidia's market capitalization surpassing 4 trillion dollars exemplifies its leadership in the AI boom. The success of AI entertainment platforms like Zeta AI in South Korea and the rapid growth of AI cloud infrastructure companies like CoreWeave in Mexico show how AI technology is boosting efficiency across industries and creating new markets.

However, AI simultaneously brings concerns about job changes. Telstra, an Australian telecommunications company, announced a large-scale workforce reduction plan, underscoring the urgent need for societal discussions on how AI will transform the employment market. Furthermore, a 'warning letter' from the U.S. Senate to Nvidia's CEO indicates that the tech hegemony competition has evolved beyond mere economic issues to become a crucial pillar of international politics. India, holding a significant position in the U.S.-China tech rivalry, is naturally paying close attention to these developments.

The importance of social infrastructure and public services also came to the forefront in several countries. Frequent railway disruptions and airport power outages in Japan, a 'boil water' advisory due to water supply interruption in Minnesota, USA, and a large-scale power outage in Ottawa, Canada, re-emphasize how crucial stable basic infrastructure is for citizens' daily lives. The need for investment in aging infrastructure was also raised. News such as Hong Kong MTR's half-price compensation and France's Agirc-Arrco implementing two-factor authentication demonstrates efforts to ensure the stability of public transport services and enhance personal data security in the digital age.

Discussions on aging societies and changes in welfare policies are also common trends. Spain's tax deductions for cohabiting individuals over 65 and changes in pension eligibility age, along with Poland's '14th pension' announcement, highlight the global challenges of supporting the elderly and ensuring the sustainability of pension systems. South Korea's discussions on abolishing credit card income tax deductions and the reversal of the unemployment benefit minimum compared to the minimum wage illustrate governments' dilemma in achieving fiscal soundness and revitalizing the labor market, emphasizing the importance of building social consensus.

Changes in the consumer market were also interesting. Poland's 'Sunday shopping ban' prompts reflection on the balance between workers' right to rest and consumer convenience. The 'Free Slurpee Day' at 7-Eleven and McDonald's 'Snack Wrap' return in the U.S., and large retail chains' summer sales events in Mexico, show companies' efforts to stimulate consumer spending and evoke nostalgia. Australia's Amazon 'Prime Day' and Aldi's entry into the online grocery delivery market highlight the expansion of online shopping and O2O (Online to Offline) services, along with a new trend of supporting small businesses. News of famous restaurant closures in Hong Kong and declining popularity of night markets in Taiwan regrettably reveal the difficulties traditional commercial models face amid high inflation and changing consumer trends.

Meanwhile, Saudi Arabia is accelerating its economic diversification through 'Vision 2030,' aiming to reduce oil dependency. By fostering entrepreneurs through 'Idea Path Week' and supporting business growth via 'Thasama Business Services Company' established by the Public Investment Fund, the nation is laying a robust foundation for its future economy. This demonstrates a strong commitment to leveraging Saudi Arabia's young population to build new industrial ecosystems and create youth employment opportunities.

As we've reviewed the major global news from the past week, it's clear that common trends and waves of change coexist amidst the unique challenges and opportunities each nation faces. Economic uncertainty, technological revolution, and shifts in societal values are impacting all our lives. In these complex circumstances, we must listen to each other's difficulties, jointly explore new opportunities, and move forward towards a better future.

In my weekly blog posts yesterday, I mentioned how news from various countries helps us understand each other more deeply and contribute to building a better world together. I believe that amidst all changes, the most important thing is ultimately 'Empathy.' Only when we understand and connect with each other's situations can a true path to mutual prosperity open up.

See you in the next update. Thank you.