Eric Trump Sparks Ethereum Rally

China Retaliates Against U.S. Tariffs and Tesla’s California Sales Decline in 2024

CRYPTO
Eric Trump Sparks Ethereum Rally

Ethereum’s price surged from around $2,300 to over $2,900 in less than 24 hours, marking a dramatic 25% gain amid ongoing crypto market volatility. This rally follows a sharp decline and comes as Ethereum faces internal disputes and competition from Solana, which has been gaining market share.

The latest rally was partly fueled by Eric Trump’s tweet, stating, “In my opinion, it’s a great time to add $ETH.” While the intent behind his statement remains unclear, speculation has grown about whether Ethereum could play a role in U.S. strategic financial decisions.

President Trump recently signed an executive action to create a U.S. sovereign wealth fund, rumored to hold Bitcoin, but Ethereum has not been explicitly included. However, the Trump-backed World Liberty Financial, a decentralized finance (DeFi) project, reportedly holds significant Ethereum reserves.

Despite Ethereum’s price surge, internal disputes among its developers and slower market cap growth compared to Bitcoin and Solana continue to fuel uncertainty about its future direction.

ECONOMY
China Retaliates Against U.S. Tariffs

China announced retaliatory tariffs on U.S. goods Tuesday, responding to Trump’s newly enacted 10% tariffs on Chinese imports. The measures raise concerns over a renewed trade war between the world’s two largest economies.

Starting Feb. 10, China will impose 15% tariffs on U.S. coal and liquefied natural gas (LNG) and 10% duties on American crude oil, agricultural machinery, and automobiles. Beijing condemned the U.S. actions as violations of World Trade Organization rules and warned of further countermeasures.

Additionally, China imposed export controls on critical minerals, including tungsten, tellurium, and molybdenum, key components for tech and industrial sectors. Meanwhile, China’s antitrust regulator launched an investigation into Google, signaling wider economic retaliation.

Despite China’s immediate response, analysts suggest these tariffs remain largely symbolic for now, but the risk of further escalation remains high. Trump’s administration is set to review Beijing’s trade compliance by April 1, potentially leading to new tariffs.

FINANCE
Tesla’s California Sales Decline in 2024

Tesla’s California registrations declined in all four quarters of 2024, with sales falling 12% for the year and nearly 8% in Q4, according to the California New Car Dealers Association. The Model 3 sedan saw a 36% annual drop, contributing to the decline.

Despite adding the Cybertruck to its lineup, Tesla’s market share in California’s EV segment fell from 60.1% to 52.5%. Meanwhile, Honda and Hyundai gained ground, increasing their EV market share by 1.8 and 1.5 percentage points, respectively.

CEO Elon Musk’s political involvement—including a $288 million donation to Trump and other Republican candidates—may have influenced sales, as California voters backed Kamala Harris by 20.2 points.

Tesla relocated its headquarters to Texas in 2021 and later moved X and SpaceX. In response, Governor Gavin Newsom has considered excluding Tesla from future EV rebates if Trump rolls back federal tax credits.

What did you think of today's newsletter

Your feedback helps us create the best newsletter!

Login or Subscribe to participate in polls.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.