- Trump’s 25% tariffs on Japan and South Korea spark little market reaction
- Worst-case geopolitical risks may already be priced in
- Expanding money supply supports bullish sentiment for crypto and stocks
On the heels of U.S. President Donald Trump’s announcement of a 25% tariff on imports from Japan and South Korea, financial markets showed surprising calm. Stocks barely flinched, and crypto markets remained stable, signaling that investors may have already priced in worst-case geopolitical scenarios — including trade conflicts and even potential wars.
Historically, such aggressive economic measures have triggered short-term panic in global markets. However, this time, the lack of major price movement suggests that investors have become more resilient, or perhaps more forward-looking. Some analysts argue that this could mark the beginning of a strong rally in risk assets.
Money Supply Growth Fuels Optimism
While geopolitical tension grabs headlines, what’s happening behind the scenes is even more telling — the money supply continues to grow. Central banks and governments worldwide have maintained loose monetary policies, injecting liquidity into the system.
This influx of cash historically leads to asset inflation, meaning more money chasing a limited supply of stocks and cryptocurrencies. That’s a bullish setup. When combined with already-priced-in risks, the expanding money supply could act as a strong tailwind for both traditional and digital markets in the coming months.
Crypto and Stocks: A Bullish Road Ahead?
If the market has indeed priced in the worst-case scenarios, and monetary expansion continues, both crypto and equities could see significant gains. While the tariff announcement may create regional economic strain for Japan and South Korea, the global appetite for risk assets appears undeterred.
This sentiment could push investors toward high-growth sectors, including crypto — especially as narratives around decentralization and hedging against fiat weakness grow stronger.
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