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4E: The escalation of the trade war threatens to overwhelm the benefits of slowing inflation, leading to declines in both the US stock market and the cryptocurrency market

ChainCatcher news reports that, according to 4E monitoring, the threat of an escalation in the China-U.S. tariff war has overshadowed the positive effects of slowing inflation. Investor concerns have taken precedence, and U.S. stocks failed to maintain Wednesday's significant rebound. On Thursday, the three major indices at one point dropped by at least 5%, although the decline narrowed towards the end of trading. By the close, the S&P 500 index fell by 3.5%, having at one point dropped by 6.3%, nearing the 7% first-level circuit breaker, marking the largest intraday drop since March 2020; the Nasdaq fell by 4.31%, and the Dow Jones by 2.5%. Major tech stocks collectively declined, with the seven giants index dropping by 6.67%.In the cryptocurrency market, the strong rebound from the previous day reversed sharply last night alongside the U.S. stock market. Bitcoin fell from $82,000 to a low of $78,464, nearly erasing all gains from the previous day. As of the time of writing, it is reported at $80,258, down 2.67%. Among the top ten mainstream coins, Ethereum performed the weakest, influenced by whale sell-offs and the decoupling of sUSD, briefly falling below $1,500. Before the deadline, it is reported at $1,541, down 6% in nearly 24 hours.In the forex commodities sector, the U.S. dollar index fell by 1.89%, marking the largest single-day drop since 2022. Oil prices dropped over 3% due to weak supply and demand expectations. Risk aversion surged, with gold reaching $3,220, setting a new historical high.Latest data shows that the U.S. March CPI fell short of expectations across the board, but the impact of tariffs has yet to be fully realized, which may soothe investors in the future. As Trump's chaotic tariff policies continue to disrupt the market, expectations of a tightening global supply chain have intensified, raising broader concerns about an economic recession. The market remains skeptical about whether the 90-day tariff delay can lead to substantial negotiation outcomes.

Jack Dorsey's Block reaches a $40 million settlement with New York regulators over anti-money laundering violations

ChainCatcher news, according to The Block, Jack Dorsey's payment company Block, Inc. has reached a $40 million settlement with New York state financial regulators due to anti-money laundering violations.The consent order released by the New York State Department of Financial Services on Thursday stated that the investigation found that the fintech company, formerly known as Square, "failed to adequately consider the significant risks posed by the scale and complexity of its business" in its anti-money laundering program when providing Bitcoin services through Cash App.Regulators specifically pointed out three major vulnerabilities at Block: a lack of risk-based anti-money laundering controls, insufficient customer due diligence, and lax handling of high-risk Bitcoin transactions that led to a large number of anonymous transactions going unchecked. This is the second time this year that Block has paid a settlement due to anti-money laundering issues. In January, the company paid $80 million to financial regulators in 48 states.A Block spokesperson stated that this settlement marks the resolution of all state-level remittance license matters and emphasized that while the company did not admit to the findings of the investigation, it has invested significant resources to improve the compliance framework of Cash App. Under the agreement, Block must hire an independent monitor to implement corrective actions.
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