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South Korea’s worst political crisis in decades is playing out against a darkening economic backdrop, as policymakers grapple with challenges ranging from a tumbling currency and weak consumer confidence to slowing job growth and intensifying competition from China.Asia’s fourth-largest economy is facing these problems as it navigates twin political shocks: Donald Trump’s re-election in the US and the fallout from South Korean President Yoon Suk Yeol’s failed attempt to impose martial law.While South Korea’s political strife is likely to exacerbate its economic woes, analysts stressed that these weaknesses predate and go beyond the current crisis.“Even if the present political crisis were to be resolved soon, there are not many reasons to be optimistic about our economic outlook,” said Park Chong-hoon, head of research at Standard Chartered in Seoul.Currency weaknessThe South Korean won was the worst performer in Asia against the US dollar last year, weakening more than 10 per cent in the fourth quarter. And while a weaker currency often benefits export-oriented economies, South Korea’s reliance on expensive imports, notably energy, outweighed any potential benefits, economists said.The currency’s slide led the Bank of Korea to defy widespread expectations on Thursday and hold its benchmark interest rate at 3 per cent, despite sluggish growth and signs of trouble in the job market.“The weaker won seems to be the biggest factor for the BoK’s decision,” said Oh Suk-tae, an economist at Société Générale in Seoul. “It is aware of the bad economic situation, but the bank remains more sensitive to exchange rates than to economic growth.”Some content could not load. Check your internet connection or browser settings.Trump threatsSouth Korea was the largest source of foreign direct investment in the US last year as the country’s manufacturers, attracted by generous subsidies, rushed to set up chip and battery plants.But a surge in US imports of South Korean goods for those facilities helped drive a record trade surplus, a long-standing bugbear for Trump, making Seoul vulnerable to retaliation.Finance minister and acting president Choi Sang-mok acknowledged this week that Trump’s threats of across-the-board trade tariffs would have a “significant impact” on South Korea’s export-oriented economy.“Although Trump is likely to increase tariffs only gradually, this will shake our financial markets and have an adverse impact on our economy,” said Shin Min-young, professor at Hongik University in Seoul.Slowing growthThe BoK also warned on Thursday that the country was likely to miss its 2024 GDP growth forecast of 2.2 per cent and trimmed its 2025 forecast to 1.8 per cent. That is down from an average annual rate of more than 3 per cent in the 2010s.“Downside risks to economic growth have intensified, and the volatility of exchange rates has increased,” said Bank of Korea governor Rhee Chang-yong, citing “political risks that have recently escalated”.Analysts note that pressure on the won as a result of the BoK’s back-to-back rate cuts in October and November was compounded by the US Federal Reserve’s pivot to slowing its pace of easing in response to Trump’s election.If Trump’s protectionist trade and immigration policies fuel US inflation, as many economists expect, a more hawkish Fed would put further pressure on the won and South Korea’s growth.Economists also warn that slowing growth is likely to have an outsized long-term impact because of the looming demographic crisis in South Korea, which has the world’s lowest fertility rate.Political turmoilSouth Korea’s ability to address structural economic issues — as well as policymakers’ efforts to lobby the incoming Trump administration — has been paralysed by an unfolding domestic political crisis.Shortly after Yoon’s aborted martial law declaration last month, Rhee told the Financial Times that Trump’s trade policies constituted a greater risk to the economy than the turmoil at home.But with the crisis showing no signs of abating after Yoon was arrested this week on insurrection and abuse of power charges, Rhee has changed his tune.“Previously, US monetary and trade policies were the biggest factors determining how much lower the growth rate would fall,” Rhee said on Thursday. “But I think it now depends more on whether the political process will function stably and whether the economy will perform in the interim.”South Korea’s President Yoon Suk Yeol, left, was arrested by police on Thursday after a dramatic predawn raid on his hilltop compound More
Bringing cutting-edge AI technology to the forefront of gaming and blockchain, GameGPT announces the official launch of their Genesis AI NFT Collection—an innovative blend of digital NFT ownership and advanced AI Agent capability. With this launch, GameGPT aims to redefine how video games are created: providing gamers, creators, and blockchain enthusiasts with next-generation tools for immersive digital experiences.The upcoming AI Agent NFT Collection of 6,000 NFTs offers owners the ability to upgrade these digital assets into interactive AI Agents. These Agents can:“We believe AI is the next frontier in game development,” says Will Deane, Founder and CEO of GameGPT. “By combining blockchain with advanced AI, we’re not only speeding up the creation process but also enabling the average person to bring their game ideas to life. This launch is just our first step in radically reshaping the future of online gaming.”For more information on the upcoming AI Agent NFT auction or AI Game Builder, visit GameGPT’s Discord channel or follow their social media channels.Disclaimer: The AI Agent NFTs are digital collectibles that enable optional AI-powered features. Buyers should familiarize themselves with potential risks, including technical, financial, and regulatory considerations.Official channels: Website | Telegram channel | Telegram chat | X | YouTube | DiscordContactCo-FounderDevin [email protected] article was originally published on Chainwire More
This tweet was published while Bitcoin briefly surged to touch the $106,000 price mark. That was followed by a slight pullback, and the world’s largest cryptocurrency by market capitalization size is now changing hands at $103,120 per coin. This constitutes a 2.71% decline within several hours today.It happened as the speculation about the new presidential administration in the U.S. and the newly elected political leader’s plans to give the green light to the creation of a strategic BTC reserve for the country and start building it this year.According to a screenshot from the Kalshi betting market, the probability of it happening has reached a historic peak of 70%.Another key factor that has driven the Bitcoin price up that high is the approaching of Donald Trump’s inauguration day, which will be Jan. 20, Monday next week.The sell has not taken place yet, but it could result in the U.S. government obtaining $7,152,699,078 in exchange for this crypto. Many crypto fans, however, hope that the newly elected U.S. president Donald Trump will prevent the potential sale and keep that huge amount of Bitcoin for the strategic reserve he plans to build.This article was originally published on U.Today More
Ali, a crypto analyst, has identified the legendary cup and handle pattern on the Bitcoin price chart. This technical formation, often seen as a bullish indicator, suggests that Bitcoin could be on the verge of a significant price surge.According to Ali, Bitcoin’s breakout from this pattern signals a potential upside target of $276,400. The cup-and-handle pattern consists of a “cup” shape, where the price gradually declines and then rises to form a rounded bottom, followed by a “handle,” in which the price consolidates briefly before breaking out to new highs.The cup-and-handle pattern has appeared in Bitcoin’s price history during previous bull runs, often preceding significant increases. If validated, this current setup sparks optimism for Bitcoin’s price trajectory.Similarly, in a recent X post, CryptoQuant predicts that Bitcoin’s price could soar past $200,000 in 2025. It cites potential $520 billion inflows, pro-crypto policies and a bullish four-year cycle as factors that might drive this outlook. According to CryptoQuant, Bitcoin’s multiplier effect might result in a $2-$6 increase in market value for every $1 inflow.Following a major sell-off at the week’s start, cryptocurrencies rebounded as riskier assets surged widely in response to comforting U.S. inflation data, which reignited expectations of future Federal Reserve interest rate reduction.In the last 24 hours, gains across various crypto assets have been reversed, with the majority trading in losses. In the last 24 hours, $477 million worth of cryptocurrency positions were liquidated, per CoinGlass data.So far this year, Bitcoin has traded quite closely with stocks. It has been in consolidation mode since late December, when Federal Reserve Chair Jerome Powell issued an inflation warning, which was later lifted this week following two mild December inflation figures. Bitcoin ETFs have received more than $1 billion in inflows during the last two days.This article was originally published on U.Today More
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By Elisa MartinuzziLONDON (Reuters) – Armed conflict is the top risk in 2025, a World Economic Forum (WEF) survey released on Wednesday showed, a reminder of the deepening global fragmentation as government and business leaders attend an annual gathering in Davos next week. Nearly one in four of the more than 900 experts surveyed across academia, business and policymaking ranked conflict, including wars and terrorism, as the most severe risk to economic growth for the year ahead. Extreme weather, the no. 1 concern in 2024, was the second-ranked danger. “Rising geopolitical tensions and a fracturing of trust are driving the global risk landscape,” WEF Managing Director Mirek Dusek said in comments accompanying the report. “In this complex and dynamic context, leaders have a choice: to find ways to foster collaboration and resilience, or face compounding vulnerabilities.”The WEF gets underway on Jan. 20 and Donald Trump, who will be sworn in as the 47th president of the United States, will address the meeting virtually on Jan. 23. Ukraine President Volodymyr Zelenskiy will attend the meeting and give a speech on Jan. 21, according to the WEF organisers.Advisers to Trump concede that the Ukraine war will take months or even longer to resolve, Reuters reported on Wednesday, a sharp reality check on his pledge to strike a peace deal on his first day in the White House. Among other global leaders due to attend the Davos meeting are European Commission President Ursula von der Leyen and China’s Vice Premier Ding Xuexiang.Syria, the “terrible humanitarian situation in Gaza” and the potential escalation of the conflict in the Middle East will be a focus at the gathering, according to WEF President and CEO Borge Brende. Negotiators were hammering out the final details of a potential ceasefire in Gaza on Wednesday, following marathon talks in Qatar. The threat of misinformation and disinformation was ranked as the most severe global risk over the next two years, according to the survey, the same ranking as in 2024.Over a 10-year horizon environmental threats dominated experts’ risk concerns, the survey showed. Extreme weather was the top longer-term global risk, followed by biodiversity loss, critical change to earth’s systems and a shortage of natural resources.Global temperatures last year exceeded 1.5 degrees Celsius (2.7 degrees Fahrenheit) above the pre-industrial era for the first time, bringing the world closer to breaching the pledge governments made under the 2015 Paris climate agreement.A global risk is defined by the survey as a condition that would negatively affect a significant proportion of global GDP, population or natural resources. Experts were surveyed in September and October.The majority of respondents, 64%, expect a multipolar, fragmented global order to persist. More
His tweet came out as the world’s flagship cryptocurrency Bitcoin surpassed the $103,000 price level and then went on to overcome $105,000 before facing a small rebound.He asked his followers whether they had ever regretted not buying the Bitcoin dip, not buying early and not ignoring FUD. Back on that day, Bitcoin first traded above $94,000 and by the end of the day it managed to overcome $97,000. He hinted that now the opportunities are as wide and plentiful as when they were when Bitcoin only started its glorious march on the market. “Today is earlier than all the days to come,” CZ stated.In the tweet published today, Zhao made sure everyone understood his Jan. 14 post correctly. He said that when speaking about “today” then, he was not referring to that particular day but “it was a generalization.” He then jestingly added that “even the short-term charts aligned with it,” hinting at the lower Bitcoin price on that day. To prove his point, CZ published a screenshot of a Bitcoin chart from CoinMarketCap which shows BTC surging above $103,500 earlier today.On Jan. 16, CZ also offered his view on the altcoin market, tweeting: “What’s good for Bitcoin is good for alts.”At the time of this writing, Bitcoin is changing hands at $102,760 per coin.This article was originally published on U.Today More
