Welcome back. Good Friday morning everybody. Thanks so much for joining us this morning.I'm Maria Barto Romo and it is Friday, February 6. It is 7 a. m.on the button on the East Coast. Coming up this hour in just a moment, I'll talk with Pennsylvania Senator Dave McCormack. And then at 7:20, don't miss the word on Wall Street panel with Payne Capital Management President Ryan Payne and the Lansky Group founder John Lansky.At 7:30, don't miss my special interview with former State Department senior adviser C ...

>> "BLOOMBERG TECH" IS LIVE FROM COAST TO COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO. ED: COMING UP, QUALCOMM OUT WITH EARNINGS. WE ARE BREAKING IT DOWN WITH THE CEOS.CAROLINE: RECORD SPENDING PLANS HIT GOOGLE DESPITE STRONG EARNINGS. ED: BITCOIN FALLS BELOW $70,000 FOR THE FIRST TIME SINCE LATE 2024. WE WILL BREAK DOWN THE NEGATIVE MOMENTUM IMPACTING CRYPTO MARKETS.CAROLINE: THAT NEGATIVE MOMENTUM IS AFFECTING MARKETS MORE BROADLY. THE NASDAQ OFF BY ONE POINT 4%. THE LOWEST SINCE N ...

Government and Economic Outlook - The upcoming Union Budget is unlikely to deliver major reform-oriented surprises and is expected to maintain the status quo due to limited scope for sweeping changes [1] - The government must urgently address heavy foreign portfolio investor (FPI) outflows to mitigate risks to financial stability [2][3] - Concerns among foreign investors have intensified following recent tax-related developments, particularly the Flipkart judgment, which has led to uncertainty regarding past transactions [6][7] Precious Metals and Cryptocurrencies - The recent rally in gold and silver prices is deemed unsustainable, with expectations of further price corrections in the near term [8][9] - The correction in precious metals and cryptocurrencies is viewed as a healthy development, indicating a return to market sanity [10] Indian Equities and Market Sentiment - Despite near-term pressures, the long-term outlook for Indian equities remains constructive, supported by healthy economic indicators and corporate earnings [11] - Concerns exist regarding the depreciation of the rupee, rising bond yields, and tightening liquidity conditions, which could pose challenges for the economy [12] Investment Opportunities - Attractive valuations in the midcap space and select sectors, such as construction, defense, and consumption, present potential investment opportunities [13] - Market psychology often creates the best buying opportunities, as drastic sell-offs can lead to undervalued stocks [14] - Selective buying has begun in the market, with interest in larger companies and smaller private banks benefiting from an improving rate environment [15][16]

Core Insights - Indian policymakers are under pressure to revise the punitive crypto tax framework as capital flight to offshore platforms raises concerns about lost tax revenue and weakened regulatory oversight [1] - The upcoming Union Budget is being closely watched by the crypto industry for potential relief from a tax regime that has significantly reduced domestic trading volumes [2] - The current tax framework imposes challenges for retail participants by taxing transactions without recognizing losses, leading to a frictional environment for the crypto ecosystem [3] Tax Framework and Impact - The Indian government introduced a 30% tax on crypto income in February 2022, with no deductions or exemptions allowed [4] - The Finance Minister specified that losses from price drops or hacking incidents cannot be offset against profits, further complicating the tax landscape for investors [5] - A 1% Tax Deducted at Source (TDS) has adversely affected high-frequency traders and liquidity providers, making their business models unsustainable on domestic platforms [6] Industry Requests and Regulatory Environment - Key requests for the 2026 Budget include tax rationalization through reduced TDS, allowing loss set-offs, establishing a regulatory mechanism for the sector, and promoting blockchain adoption [4] - Despite being a leader in grassroots crypto adoption, India's tax-heavy approach has created a regulatory limbo, contrasting with more structured frameworks in other Asian countries [2]

Core Insights - South Korean crypto trading volumes have significantly decreased following the announcement of a 25% tariff by US President Donald Trump, leading investors to shift their focus to the stock market [1][2] - The Korea Composite Stock Price Index (KOSPI) reached a record high of over 5,000 index points, reflecting a rebound after an initial drop due to the tariff news [2][5] - The gap between traditional stock markets and the crypto market is widening, with investors feeling exhausted by crypto volatility and shifting their attention to the rising KOSPI [3] Crypto Market Impact - Trading volumes on major crypto exchanges in South Korea, Upbit and Bithumb, fell by 51% and 35% respectively, indicating a significant decline in retail investor activity [2][5] - Retail crypto investors are reportedly hesitant to make moves, with many choosing to hold their positions amid uncertainty [4] - Despite retail investor caution, institutional interest in the crypto market remains strong, as evidenced by the rise in share prices of companies with stakes in crypto exchanges [4][5] Stock Market Dynamics - The KOSPI's record-breaking performance occurred despite initial volatility, with Hyundai Motor shares dropping nearly 5% before rebounding to close only 1% lower [6] - Shares of companies like Woori Technology Investment and Hanwha Investment & Securities, which are associated with Upbit, saw increases of over 4% and 7% respectively, highlighting a positive sentiment in the stock market [5]

Core Viewpoint - The fundamentals driving gold prices remain strong, influenced by government spending and geopolitical tensions, particularly the impact of Russia's invasion of Ukraine and the shifting dynamics in global monetary markets [1][2]. Group 1: Gold Market Dynamics - Gold is increasingly viewed as a safe haven amid a less ordered world, with expectations that countries, particularly China, will continue to buy significant amounts of gold [2][3]. - The perception of risk associated with treasury holdings is growing among various countries, not just China, which may lead to increased demand for gold [3]. Group 2: Comparison with Cryptocurrency - There was a time when cryptocurrencies were favored over gold, but recent trends indicate that gold is reaffirming its value as a stable asset [4]. - The rise of cryptocurrency has made younger generations more aware of the risks associated with fiat currency, leading them to appreciate gold as a more reliable hedge [5][6].

Davos 2026 did put crypto back in the global spotlight. It may not have dominated the WEF agenda but it was a part of enough speeches and conversations to move markets and set narratives for 2026. What was the big takeaway? Politics is still navigating through short-term price action. But traditional finance, Wall Street and more are increasingly treating crypto and tokenization as inevitable. In an exclusive chat with 99Bitcoins, Dea Markova, Policy Director for Fireblocks, weighed in. “As geopolitical ...

Core Insights - Institutional adoption of digital assets has reached a point where a full retreat is no longer realistic, indicating a structural shift rather than a cyclical one [1][2][3] Group 1: Institutional Engagement - PwC's report highlights sustained institutional activity in areas such as custody, trading, settlement, tokenization, and on-chain financial infrastructure, which has continued despite market volatility and regulatory uncertainty [2][3] - Major financial institutions are now developing long-term systems and strategies around digital assets, making it costly and impractical to withdraw from this engagement [3] Group 2: Regulatory Environment - The regulatory landscape, particularly in the U.S., has played a crucial role in facilitating this shift towards institutional adoption of crypto [4][5] - New legislation and regulatory clarity, such as the GENIUS Act, have encouraged traditional financial institutions to engage more directly with digital assets, moving from caution to commitment [5][6] - Leadership changes at the SEC have also been identified as a turning point that has shifted perceptions from viewing crypto as a risk to seeing it as an opportunity [6]

Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. Subscribe to the Morning Minute on Substack. GM! Today’s top news: Crypto majors fall 1-2% despite Gold & Silver pump; BTC at $89,200 Ledger prepares for $4B IPO, tapping Goldman and others to lead PwC says institutional crypto adoption can no longer be reversed Leshner’s SuperState raises $82.5M in Series B to accelerate tokenized stocks ...

Core Insights - The US Department of Justice (DOJ) is shifting its approach to crypto enforcement, viewing digital assets as integral to large-scale fraud operations rather than isolated scams [1][2] Group 1: DOJ's New Approach - The DOJ's 2025 Year in Review indicates a significant increase in crypto-related fraud cases, with 265 defendants charged and an aggregate intended loss exceeding $16 billion, more than double the previous year [2] - The Fraud Section of the DOJ operates specialized units, including the Health Care Fraud Unit, which manages the seizure of crypto alongside other assets [3] Group 2: High-Profile Cases - A notable case involved a $1 billion Medicare fraud scheme targeting elderly patients, resulting in over $600 million in improper Medicare payments, with authorities seizing more than $7.2 million in assets, including crypto [4] - Travis Ford, former CEO of Wolf Capital, was sentenced to five years in prison for a $9.4 million crypto investment scam that promised 547% annual returns to approximately 2,800 investors, reflecting the DOJ's strategy of treating crypto as traditional illicit assets [5]