Changes in the Global Economic Landscape and Outlook for the Crypto Assets Market

In the current context of an unpredictable global situation, the Crypto Assets market seems to have entered a relatively calm phase. Although there are signs of a bull market rebound after Bitcoin's halving, the overall market currently presents a "wait-and-see" state. For most investors, adopting a strategy of long-term holding or investing in emerging popular coins might be a more prudent choice at this time.

However, this relatively quiet period also provides us with an opportunity to examine the macroeconomic environment. After all, the Crypto Assets market is fundamentally influenced by global economic trends. Currently, two important economic events worth noting are occurring:

1. A certain country is massively reducing its holdings of US Treasury bonds and agency bonds.
2. The United States has announced a significant increase in tariffs on imported products from the country.

For a long time, the country has been a major holder of U.S. Treasury bonds, owning up to 10% of them. This practice has multiple reasons, including that U.S. Treasury bonds are seen as a safe and reliable investment option, as well as helping to maintain the relative stability of the country's currency, thereby keeping export competitiveness.

However, recently the country has started to significantly reduce its exposure to US debt. Reports indicate that the country recorded a massive sell-off of US Treasury bonds and agency bonds in the first quarter. This move could have multiple effects:

• Increase the supply of U.S. Treasury bonds in the market, leading to a decline in prices and an increase in interest rates.
• The cost of servicing U.S. government debt has increased.
• May affect the exchange rate of the US dollar against the country's currency, impacting the country's exports.

In response, the U.S. government announced a significant increase in tariffs on imports from the country. The new policy substantially raises tariffs on a variety of products, including electric vehicles, lithium batteries, steel, aluminum products, semiconductors, and solar panels. This measure aims to raise the prices of the country's goods in the U.S. market and encourage consumers to purchase domestically made products.

However, this strategy also faces challenges. The United States currently lacks sufficient domestic production capacity to replace the country's supply. To increase domestic capacity, large-scale fiscal stimulus may be required, which could lead to more currency issuance and government debt.

For the Crypto Assets market, these macroeconomic changes may have various impacts:

• The global economic slowdown may reduce disposable income available for investing in Crypto Assets.
• Governments may increase fiscal stimulus and monetary issuance, while Bitcoin is often seen as a tool against inflation.
• Governments around the world are facing economic challenges, which may weaken the regulatory pressure on Crypto Assets.
• If the US dollar depreciates due to increased debt and money supply, Bitcoin may benefit as an alternative currency choice.

Overall, although the current encryption market is relatively calm, changes in the global economic landscape may create new opportunities and challenges for its future development. Investors need to closely monitor these macroeconomic trends to better grasp the long-term development direction of the Crypto Assets market.