Weekly Smart Pills #87
Financial Markets
Cryptocurrency Market
Bitcoin fell roughly 4%, closing the week at US $99,237. Ethereum followed a similar path, dropping 8.5 % to about US $2,199. These declines came amid escalating geopolitical tensions—particularly in the Middle East—as markets reacted to developments involving Iran, Israel, and the United States. At the same time, activity on decentralized exchanges rose by more than 10 %, pointing to investor rotation rather than panic-driven selling. Overall, the crypto market structure remains sound, with stablecoin inflows ticking up versus the previous week.
Traditional Financial Markets
U.S. equity indices finished slightly higher despite geopolitical headwinds. The S&P 500 gained 1 %, the Dow Jones rose 0.9 %, and the Nasdaq advanced 0.9 %, buoyed by resilient consumer spending and lower oil prices. Investors took comfort in reports that Iranian missile strikes caused no U.S. casualties, easing fears of a broader escalation. Treasury yields fell, and gold briefly touched US $2,100/oz before pulling back, while risk appetite returned—albeit cautiously.
Economy and Regulation
Fourteen EU member states oppose the European Commission’s plan to centralize the management of EU funds in the next long-term budget. They are calling for a separate Cohesion Policy with region-specific financing to ensure balanced development across the Union. Critics argue that merging the funds into a single national plan would dilute regional influence and risk excessive centralization. Poland and the Socialist & Democrats (S&D) group in the European Parliament also reject the “single national plan” model and demand a larger, more ambitious budget. The Commission’s official proposal for the 2028–2034 EU budget is due on 16 July.
The main tax-and-spending bill backed by Donald Trump has cleared Congress and will be signed on 4 July. The package delivers US $4.5 trillion in tax cuts—heavily skewed toward high-income earners—and sharply reduces funding for healthcare, food security, and green-energy programs. According to the CBO, the law could add US $3.4 trillion to the federal debt and leave nearly 12 million Americans without health insurance. All Democrats opposed the measure, while most Republicans supported it despite the cost. Trump calls it a “transformative” reform and plans a celebratory signing ceremony featuring a fighter-jet flyover above the White House.
Blockchain and Innovation
No major protocol upgrades were announced, yet blockchain adoption continued to grow. Coinbase has filed an application with the SEC to offer trading in tokenized equities, enabling users to buy securities via blockchain infrastructure. Meanwhile, the SEC wrapped up its series of digital-asset roundtables, signaling a more structured regulatory approach ahead. These developments underscore rising institutional engagement with tokenized assets and greater legal clarity for the digital-finance sector.
Trends and Statistics
Cost of Living in Europe:
In 2024, Switzerland is Europe’s most expensive country, with a cost-of-living index at 184 % of the EU average; Turkey is the cheapest at 47 %.
Within the EU, Luxembourg tops the list at 151 % of the EU average, while Bulgaria and Romania share the bottom spot at 57 %.
Ten EU states post prices above the bloc’s average; among them, Germany (109 %) and France (108 %) sit slightly above, whereas Italy (98 %) and Spain (91 %) remain below.
High prices in countries such as Switzerland, Norway, and Denmark are tied to high productivity and wages.
These price comparisons omit income levels; for example, alcohol and tobacco in Ireland cost three times as much as in Bulgaria.
