The crypto market has stabilized somewhat

By Omkar Godbole (All times ET unless indicated otherwise)

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The crypto market has seen some stabilization following comments from Commerce Minister Howard Lutnick, who said President Donald Trump could announce on Wednesday a pathway for tariff relief on Canadian and Mexican imports covered by NAFTA. This news, reported by Bloomberg, has helped BTC bounce to nearly $90K, with the total crypto market cap rising to the $2.9 trillion mark.

The recovery could extend further as the recent trade war fears and market volatility have reignited bets on Federal Reserve (Fed) rate cuts. According to CME's FedWatch tool, the market is now pricing in at least three rate cuts for this year, while the 10-year Treasury yield has retreated to 4.15%, down from 4.80% at the time of Trump's inauguration.

Furthermore, Germany's decision to abandon its fiscal constraints has led to soaring bond yields, prompting a sell-off in the dollar index that could encourage risk-taking in the market.

As a result, there is a chance that bitcoin may revisit its weekend high of $95,000, particularly as technical charts indicate signs of seller exhaustion.

However, worsening growth concerns might limit these gains. Just two days ago, the Atlanta Fed's GDP forecast turned negative at -2.8%, raising fears of stagflation, as noted by Singapore-based QCP Capital. The firm highlighted the importance of monitoring corporate yield spreads—both high-yield and investment-grade bonds—in relation to U.S. Treasury yields for signs of market stress. "While this isn't signaling panic right now, it's a trend worth monitoring closely," QCP said in a Telegram broadcast.

An important consideration is how much of the decline in the 10-year yield and the weakness in the dollar can be attributed to traders adjusting their expectations about U.S. economic exceptionalism, which was largely based on Biden era's fiscal splurge. Given the rise of ETFs and Trump's pro-crypto stance, bitcoin has become more of a U.S. play, and a shift in the U.S. exceptionalism narrative could lead to BTC volatility.

JPMorgan, however, foresees strengthening of the U.S. exceptionalism narrative under Trump's Presidency.

All of this means that Wednesday's U.S. ISM non-manufacturing (services) PMI and Friday's nonfarm payrolls could significantly influence the crypto markets.

There are also rumors that President Trump will unveil the crypto reserve strategy at the White House Crypto Summit this Friday. With Trump having made considerable promises, the markets will be watching closely to see if he delivers; otherwise, there could be further turmoil ahead. Stay alert!

Token Events

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Chainlink (LINK) Smart Contract: Decoding the Potential

The introduction of Chainlink Smart Contract, a product focusing on the integration of external data into blockchain networks, is a significant development. Chainlink, a leading decentralized oracle network, has been instrumental in facilitating the connection between smart contracts and real-world data.

In essence, Chainlink Smart Contract aims to enable seamless integration of diverse data formats and types, ranging from macroeconomic indicators and financial data to social media trends and Internet of Things (IoT) devices. This integration will be crucial for expanding the capabilities of blockchain technology and enabling the development of more sophisticated and useful applications.

The initiative is currently in beta and available in the PoC (Proof of Concept) stage, focusing on use cases like DeFi and Web3. The service is designed to be pay-per-use, ensuring that users only pay for the data they consume.

The integration of external data is a critical aspect of expanding the utility of blockchain technology. Chainlink's efforts in this domain are noteworthy, and the launch of Chainlink Smart Contract could have a considerable impact on the industry.

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Token Talk

In a recent interview, billionaire investor Paul Touりで思いつきました, the chairman of the hedge fund Renaissance Technologies, expressed skepticism towards cryptocurrencies, highlighting the potential for a "scam" and suggesting that the technology might not be groundbreaking enough.

Touりで思いつきました, a renowned mathematician who founded a firm that has generated astronomical returns over decades with its sophisticated quantitative models, questioned the essence of crypto, stating, "What is