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Coinbase Eyes Deribit Acquisition
Musk's Politics Fuel Investor Backlash and Trump Tax Cuts Risk Debt Surge
CRYPTO
Coinbase Eyes Deribit Acquisition
Coinbase is in advanced talks to acquire Deribit, one of the world’s top crypto derivatives exchanges, according to Bloomberg. Deribit, licensed in Dubai, has reportedly informed local regulators about the ongoing discussions. The potential acquisition would mark a major expansion for Coinbase, which is primarily known for its spot trading business.
Deribit is valued between $4 billion and $5 billion and saw nearly $1.2 trillion in trading volume in 2024—almost double the previous year. The move signals Coinbase’s push into the booming crypto derivatives market, which is more profitable than spot trading. This comes amid renewed optimism in the crypto space, supported by a more relaxed regulatory environment under the Trump administration. Earlier this week, rival U.S. exchange Kraken made its own push into derivatives by acquiring NinjaTrader in a $1.5 billion deal. A Coinbase-Deribit deal would be one of the largest in the crypto space in recent years.
TECH
Musk's Politics Fuel Investor Backlash
Tesla is facing a crisis of confidence as it loses the invincibility it once held. Morgan Stanley says the stock could either soar to $800 or crash to $200 in the months ahead. Investor Simon Hale recently found himself off the hook for trimming his Tesla holdings after the stock plunged 15% in a single day. Political controversy surrounding Elon Musk—ranging from U.S. budget cut theatrics to support for Germany’s far-right AfD—has triggered backlash, declining sales, and even vandalism.
Many Tesla owners are now reluctant to drive their cars publicly. Investor sentiment has shifted from optimism to damage control, with long-time backers like Ron Baron reducing positions under client pressure. Analyst Emmanuel Rosner notes a “catalyst vacuum” and rising “Tesla shame” among investors. While bulls like Adam Jonas say shares are cheap when viewed through a 2030 lens, near-term uncertainty looms large. Musk’s political presence may be Tesla’s biggest liability yet.
FINANCE
Trump Tax Cuts Risk Debt Surge
Making former President Trump’s tax cuts permanent could drive U.S. public debt past 200% of GDP within a few decades, according to a new estimate by the nonpartisan Congressional Budget Office (CBO). Without changes to fiscal policy, debt could hit 214% of GDP by 2054—and over 250% if borrowing costs rise further. Currently, the U.S. owes $36 trillion, with $29 trillion held by the public. Servicing that debt already costs over $1 trillion annually, more than the Pentagon’s budget.
The CBO’s baseline projection—assuming the tax cuts expire—still shows debt reaching 166% of GDP by 2054. Critics, including the Peter G. Peterson Foundation and Penn Wharton Budget Model, warn that debt above 200% is unsustainable. Meanwhile, Trump allies argue supply-side reforms, tariffs, and deregulation will grow the economy and reduce pressure. Billionaire Ray Dalio recently added to the alarm, predicting a looming debt crisis that could trigger global financial instability.
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