Weekly Smart Pills #78
Financial Markets
Cryptocurrency Market
This week, Bitcoin (BTC) experienced high volatility. The price approached $97,000 before stabilizing around $95,000. The movement was driven by growing investor interest and ongoing discussions between the United States and China regarding cryptocurrency regulation. Ethereum (ETH) also saw gains, trading between $1,790 and $1,830. A major blackout in Spain and Portugal on April 28 interrupted internet access and raised concerns about Bitcoin's ability to function during large-scale infrastructure failures.
Traditional Financial Markets
U.S. markets closed the week slightly higher. The S&P 500 and the Nasdaq rose, supported by strong earnings from major tech companies. At the same time, investors remained cautious due to mixed economic data and uncertainty over trade policy. In Europe, the euro fluctuated between $1.136 and $1.152. The DAX and FTSE MIB posted slight gains, but overall market sentiment remained uncertain.
Economy and Regulation
India and Bangladesh have imposed reciprocal trade restrictions, disrupting key sectors such as Bangladesh’s garment exports and India’s cotton yarn exports. Tensions escalated after Bangladesh’s interim government, led by Muhammad Yunus, requested the extradition of former Prime Minister Sheikh Hasina, currently in India. India revoked a key transit route for Bangladeshi exports, likely in response to Yunus’s pro-China statements. Political and public dissatisfaction is growing in both countries, affecting visas, trade, and regional cooperation. Analysts warn that continued escalation could harm long-standing economic ties.
European markets rose after President Trump confirmed plans to reduce tariffs on auto parts used in vehicles made in the U.S., in an effort to support local manufacturers. The decision, announced shortly before a potential increase to 25% tariffs, boosted investor confidence and extended the global market rally. Major European and Asian stock indices increased, while U.S. futures also saw slight gains. Meanwhile, the euro and other safe-haven assets weakened due to easing trade war tensions. China denied that any trade talks were underway, but the U.S. administration appears to be taking a softer approach to tariffs.
Blockchain and Innovation
In Arizona, lawmakers passed a bill that would have allowed public entities to invest in Bitcoin, but the governor vetoed it due to concerns about volatility.
MetaMask and Mastercard announced a new crypto card that allows spending directly from self-custody wallets.
On the stablecoin front, the SEC clarified that some will not be considered securities, providing greater regulatory clarity for issuers.
Trends and Statistics
Income tax rates in Europe:
Denmark has the highest rates for all family types, with a maximum of 35.7% for both single individuals and dual-income couples.
Poland has the lowest for singles (6.2%), while Slovakia reaches as low as -12.8% for single-income couples with two children, thanks to tax refunds.
Among major economies, Italy has the highest rate for singles (20.9%), followed by Germany and France (both at 16.7%).
Tax rates rise with income: the EU average is 12.1% at 67% of the average wage, 17.2% at 100%, and 23.1% at 167%. Sweden shows the largest increase, from 16.1% to 28.7%.
Eastern European countries (Poland, Czechia, Slovakia) have the lowest tax burdens for all types of families.
