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This week brings stories of political challenges and financial milestones. While France faces mounting political instability, South Korea’s crypto trading dominance grows amidst uncertainty, highlighting its deep connection to digital assets. And Bitcoin breaks the $100K barrier, sparking debates on its future as a global reserve asset.

The Weekly Fun Fact 🤔

South Korea’s declaration of martial law briefly sent Bitcoin prices on local exchanges dropping to $71,815, well below the global average. This highlights how the country relies on cryptocurrency as a safe haven in times of instability.

Since Trump’s election, South Korea's daily crypto trading volumes have surpassed its Kospi index, with $9.4 billion traded daily compared to $7 billion for stocks. Over 7 million Koreans — that’s 15% of the population — are now crypto traders, drawn by high-reward altcoins and exchange promotions. This change is still being fueled by political and economic conflicts.

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🔴 Martial Law sparks market turmoil

South Korea shocked the world as President Yoon Suk Yeol declared martial law, only to retract it within hours in the face of criticism and unanimity from the parliament. The KOSPI index fell more than 2% as a result of the market's strong reaction, but it was still higher than its low from the previous month. In an indication of cautious optimism, the Bank of Korea offered liquidity but held off on lowering interest rates.

Although there were little worldwide repercussions, the incident brought attention to South Korea's vulnerable position in the geopolitical stage. While democracy overcame the test, the fragility of stable democracies like South Korea, France, and Germany underscores the challenges of an evolving global order.

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🟡 French dominoes as political uncertainty shakes confidence

France’s political landscape is collapsing. A no-confidence vote resulted from Prime Minister Michel Barnier's legal ploy to pass a budget, and his chances of surviving fell from 80% to 10% on Polymarket. Parliamentary elections are months away, leaving the country in a political impasse.

The chaos is pushing borrowing costs higher, with French 10-year yields now 88 basis points above German bonds. Experts warn of more harm to the euro's credibility as a reserve currency, even while the rest of the eurozone is still stable. A possible reset in US-EU economic ties and more extensive European reforms may be the key to finding solutions.

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🟢 Bitcoin’s $100K milestone ignites reserve debates 💰

Bitcoin reached a historic $100,000, marking a psychological and financial breakthrough. Despite its $2 trillion market cap, the digital asset still lags behind gold’s $18 trillion, sparking debates about its true value. Advocates argue Bitcoin’s portability, durability, and resistance to censorship make it far superior. President Trump’s proposal for a U.S. Strategic Bitcoin Reserve adds momentum, with global adoption already underway. 

As nation-states like El Salvador and Bhutan adopt Bitcoin, experts predict a global competition for the asset among countries. For long-time Bitcoin holders, this moment signifies validation after years of market volatility. But for advocates, the journey has just begun—bringing Bitcoin to the masses is the next chapter.

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Interesting reads

Euro-zone inflation data
Euro zone inflation rose to 2.3% this month, mainly driven by services, according to today’s data.

France vs Germany
The political turmoil in France is taking its toll on markets. The CAC 40 Index is underperforming Germany’s stock benchmark by the most in three decades.

Traditional Art vs Digital Art
The art market now focuses on how traditional and digital art differ, as both offer unique creative opportunities.

🎬 It’s a wrap! From France’s political turmoil to Bitcoin’s record-breaking rally, this week highlights the intricate ties between politics and markets.