Weekly Smart Pills #74
Financial Markets
Cryptocurrency Market
In recent days, the cryptocurrency market has experienced significant volatility.
Bitcoin (BTC) dropped by 5%, falling to $78,892.92, while Ethereum (ETH) saw a sharper decline of 9.62%, settling at $1,617.65.
These movements were influenced by various factors, including geopolitical tensions and concerns over potential new regulations in the crypto sector.
Increased economic uncertainty has also contributed to heightened volatility, with investors closely monitoring macroeconomic developments and monetary policies from major central banks.
Traditional Financial Markets
This week, major U.S. indices suffered steep losses due to the newly announced tariffs, with the S&P 500 down 6%, the Dow Jones falling 5.5%, and the Nasdaq declining 5.8%.
Volatility increased across all sectors, reflecting concerns over the impact on global trade and corporate earnings.
In Italy, the FTSE MIB remained stable after last week’s growth, while European markets showed more caution, particularly in export-related sectors.
High volatility was also seen among banking and industrial stocks.
Economy and Regulation
President Trump’s new tariffs will take effect immediately, with no exemptions, imposing a 25% tax on imported vehicles.
The move aims to protect American workers, but global markets remain uncertain.
Some analysts anticipate a market rebound following the announcement, while others warn of prolonged volatility.
The European Union has expressed its willingness to respond but prefers a negotiated solution.
Major U.S. automakers are lobbying for exemptions on low-value components.
The EU is closely monitoring Chinese imports of steel, electronics, and renewables amid rising trade tensions and new U.S. tariffs on Chinese goods.
European officials warn of the risk of trade diversion, with excess Chinese products potentially flooding the European market.
Steel is a key concern, due to China’s domestic slowdown and global overcapacity.
The European Commission may consider safeguard measures if necessary.
Monitoring will intensify as reciprocal tariffs take effect at the beginning of April.
Blockchain and Innovation
Mastercard, in collaboration with JPMorgan, has integrated its Multi-Token Network (MTN) with Kinexys Digital Payments, formerly known as JPM Coin.
This integration aims to enhance cross-border B2B payments, offering greater transparency and speed in transactions.
Additionally, Mastercard has introduced Crypto Secure, a solution designed to help issuers assess the risk associated with cryptocurrency exchanges, ensuring safer transactions in the digital ecosystem.
These developments highlight Mastercard’s ongoing commitment to blockchain innovation, aiming to integrate digital payment solutions into the traditional financial system in a secure and compliant manner.
Trends and Statistics
Consumer prices in Italy rose by 0.4% month-over-month and 2.0% year-over-year in March 2025 (up from 1.6% in February).
Core inflation remained stable at 1.7%, while inflation excluding energy increased to 1.8%.
Goods inflation reached 1.7% (up from 1.1%), while services inflation held steady at 2.4%, narrowing the gap to 0.7 percentage points.
Unregulated energy product prices rose from -1.9% to +1.3% year-over-year; regulated energy prices slowed from +31.4% to +27.3%.
The Harmonized Index of Consumer Prices (HICP) increased 1.6% month-over-month and 2.1% year-over-year, mainly due to the end of winter clothing sales.
