Weekly Smart Pills #83
Financial Markets
Cryptocurrency Market
Bitcoin traded between $108,600 and $110,250 this week, closing around $109,700. The market remained stable despite recent fluctuations, showing resilience amid global uncertainty. Ethereum also held steady. Meanwhile, crypto investment funds reached a record level of $167 billion in assets under management, reflecting sustained institutional interest and long-term confidence in digital assets.
Traditional Financial Markets
U.S. stock markets closed the week slightly higher. The S&P 500 remained above the 6,000 mark, supported by better-than-expected job data and progress in trade talks between the U.S. and China. The Nasdaq and Dow also saw modest gains. However, concerns over tariffs and central bank decisions kept volatility elevated. In Europe, the DAX and FTSE 100 moved cautiously as investors awaited further clarity on inflation and global trade conditions.
Economy and Regulation
Bulgaria will adopt the euro in early 2026 after receiving approval from both the ECB and the European Commission. The country met the main economic criteria after previous delays due to high inflation. Despite protests and disinformation, the transition is expected to lower borrowing costs and attract investment. Final approval is expected on July 8.
The ECB cut its deposit rate by 25 basis points, bringing it down to 2%, citing easing inflation and ongoing global trade tensions. Other key rates will also be lowered starting June 11. Inflation fell to 1.9% in May, below the target, supported by a strong euro and lower energy costs. Despite trade-related risks, EU spending on defense and infrastructure could help sustain growth. Markets anticipate another rate cut by year-end.
Blockchain and Innovation
This week saw significant progress in blockchain adoption:
Société Générale announced the launch of a USD-pegged stablecoin, available on Ethereum and Solana starting in July.
In the U.S., the government initiated preliminary discussions on creating a strategic Bitcoin reserve, signaling growing interest in integrating digital assets into national financial planning.
These developments reflect the ongoing shift toward broader institutional acceptance of blockchain technology.
Trends and Statistics
Post-tax real incomes in Europe:
In 2024, seven countries recorded a decline in real post-tax income: Italy, Estonia, Czechia, France, Greece, Belgium, and Spain.
Italy: Real wages rose by 2.7%, but this was offset by a 7.5% increase in the average personal tax rate.
Estonia and Czechia: Tax hikes above 4.5% outpaced real wage growth.
France: Real wages rose 0.7%, but with a 1.7% increase in tax burden, post-tax income declined.
By contrast:
Portugal (-8%) and the UK (-8.7%) cut their tax rates.
Turkey saw a 15.5% rise in real wages, more than offsetting a 3.9% increase in tax burden.
