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US considering BTC as USD collateral, Europe keeps struggling with economic challenges, and Powell’s rate-cut pause shakes markets. Plus, a $212M art forgery scandal unveils a dark twist in the art world. Let’s dive in!

The Weekly Fun Fact 🤔

Italian police uncovered a sophisticated forgery ring that produced counterfeit works of iconic artists like Banksy, Picasso, and Warhol. Knowned as “Operation Cariatide,” the investigation seized over 2,100 fake artworks valued at $212 million, preventing them from flooding the market.

This elaborate scheme even staged exhibitions to legitimize the fakes. Now, some of the confiscated pieces are on display in Pisa, offering a rare look into the secretive world of art forgeries.

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🔴 Europe struggles amidst global shifts 🌍

As the euro approaches parity with the dollar and stock markets perform worse than in the US, Europe is facing economic difficulties. Trump's proposed tariffs pose a threat to deepen the economic gap and further strain Europe's weakening economy and struggling businesses.

The Stoxx Europe 600 Index, trading at a 40% discount to the S&P 500, highlights this growing disparity. While some see Trump’s policies as a wake-up call for reform, Europe faces an uphill battle to regain economic competitiveness.

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🟡 Powell’s rate-cut pause sparks market worries 📉

Federal Reserve Chair Jerome Powell signaled no urgency in cutting interest rates, pointing to steady economic growth, a strong labor market, and persistent inflation above the 2% target. His remarks shifted market expectations, with investors now pricing in a slower pace of rate cuts for the foreseeable future.

This cautious stance decreased the optimism in the market, leading to a decline in major U.S. indices. While some view Powell's approach as a prudent response to economic conditions, others are concerned it could weigh on market momentum as 2024 progresses.

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🟢 Bold Bitcoin proposal stirs debate💰

Bitcoin’s rise past $99,000 has reignited calls for the US to establish a strategic Bitcoin reserve. Advocates suggest a $250 billion allocation could secure Bitcoin’s role in protecting against currency depreciation. This move would position the US as a global leader in digital assets.

Skeptics draw attention to the risks tied to Bitcoin’s volatility and the scale of such an investment. Still, with Trump’s pro-crypto administration in power, the concept of a Bitcoin reserve is gaining traction among policymakers and investors alike.

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🎬 It’s a wrap on the week! From Bitcoin’s rise to Europe’s challenges and an eye-opening art forgery scandal, this week offered plenty to think about.