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Consumer prices in China saw an unexpected increase in October, driven largely by heightened demand for travel, food, and transport during the holiday period. Official figures revealed that the consumer price index rose by 0.2%, surpassing analysts’ expectations. This marked a shift from the previous months when inflation had remained subdued, raising questions about the economic trajectory moving forward.

The data from the National Bureau of Statistics indicated that the uptick was primarily fueled by the surge in travel and food consumption associated with the Golden Week holiday, a week-long national event that encourages domestic tourism. Hotels, transport services, and restaurants saw increased patronage, pushing up prices in these sectors.

Notably, food prices were one of the key contributors to the overall rise in consumer prices. The cost of fresh vegetables, meat, and other staple goods experienced a spike, with pork prices seeing a particular increase due to seasonal fluctuations. China’s long-standing efforts to stabilize food prices have proven challenging in recent months, particularly in light of unpredictable weather patterns affecting crop yields. Despite these pressures, the overall CPI remains relatively low compared to other major global economies.

Alongside the rise in food prices, transportation costs also saw a marked increase, particularly for flights and long-distance travel, as the holiday season boosted demand. The transportation and hospitality sectors, both key drivers of the country’s service economy, showed positive signs of recovery as the nation continues its post-pandemic economic rebound. The surge in demand during Golden Week also contributed to the overall transportation cost increases.

Experts caution that while the CPI increase in October reflects an uptick in consumer spending, it may not necessarily signal a long-term trend. Many economists argue that the inflationary pressures witnessed in October were likely influenced by temporary factors linked to the holiday season, rather than a systemic inflationary shift. As consumer demand normalizes, inflation is expected to moderate.

China has been carefully monitoring its inflation levels, with officials keen to maintain price stability as the economy transitions from pandemic recovery to a more sustainable growth path. Despite the October surge, the government has largely maintained a cautious stance, aiming to avoid any drastic monetary policy changes. The People’s Bank of China has been wary of tightening policies too soon, opting instead to support the economy through more targeted interventions.

While inflationary concerns are on the radar, consumer confidence remains a vital aspect of China’s economic recovery. The government’s focus on stimulating domestic consumption, particularly in urban areas, plays a critical role in the broader economic strategy. As international trade faces challenges due to global uncertainties, domestic consumption is seen as a key pillar to maintain stable growth in the short to medium term.

Hyperliquid, a prominent decentralized finance platform, is currently trialing a new feature known as the BorrowLendingProtocol on its Hypercore testnet. This marks a significant development in the platform’s broader efforts to enhance its functionality and user offerings within the DeFi ecosystem. With the test phase underway, the protocol is expected to reshape the way users interact with digital assets on Hyperliquid, particularly for those seeking to borrow and lend.

The BLP is designed to support both USDC and PURR tokens, offering a dual functionality for users who wish to either supply their assets for lending or borrow assets for liquidity purposes. This borrowing and lending mechanism could open up new opportunities for users to maximize their holdings, allowing them to earn interest on idle assets or leverage borrowed funds to enhance their trading capabilities.

As speculation grows, many industry observers believe that the BLP will eventually become the foundation of Hyperliquid’s Multi-Margin system. This system would enable users to borrow multiple assets for margin trading, potentially unlocking a more sophisticated layer of DeFi tools on the platform. However, as the feature is still in its testing phase, no official confirmation has been provided regarding this integration.

Hyperliquid’s decision to test the protocol on the Hypercore testnet is a strategic one, allowing the team to assess the feature’s performance and ensure it is operating as intended before rolling it out to the broader user base. The testnet serves as a proving ground for new developments, offering an environment where bugs and issues can be identified and rectified without risking the platform’s mainnet integrity.

The introduction of BLP into the DeFi space is significant not only for Hyperliquid but also for the broader market. Borrowing and lending protocols have become a cornerstone of DeFi ecosystems, enabling more dynamic interactions between users and assets. These protocols allow for enhanced liquidity, allowing users to access funds without needing to sell their holdings. In addition, they create new ways for investors to diversify their strategies, from borrowing to take advantage of price movements to lending assets for passive income generation.

The launch of BLP could position Hyperliquid as a more competitive player in the crowded DeFi space. As more platforms introduce borrowing and lending features, the demand for flexible, secure, and user-friendly systems grows. Hyperliquid’s focus on providing a seamless, highly functional borrowing and lending experience could attract more users looking for a comprehensive DeFi solution.

As the trial progresses, Hyperliquid will closely monitor user feedback and performance metrics to ensure the system meets the expectations of its community. Any adjustments to the protocol will be made based on this data, ensuring that the final version is robust and capable of handling the demands of an active user base.

The BLP’s potential integration into Hyperliquid’s Multi-Margin system could pave the way for new strategies within the platform. Multi-margin systems allow traders to use their collateral across various assets, enhancing their ability to take on larger positions without increasing their initial outlay. By combining BLP with Multi-Margin, Hyperliquid could offer traders a more versatile toolset for managing risk and maximizing returns.

Visa and Mastercard are reportedly nearing a resolution in a two-decade-long legal dispute with a group of merchants over the fees associated with their payment systems. Sources familiar with the ongoing negotiations indicate that both companies, along with the merchants involved, are working towards an agreement that could put an end to the protracted legal battle, which has caused significant tension in the payments industry.

The legal issue dates back to the early 2000s when merchants accused the payment giants of anti-competitive practices, specifically their practice of setting high interchange fees for card transactions. These fees, paid by merchants to card issuers, have been a point of contention for years, with many arguing that the pricing structures imposed by Visa and Mastercard were unfairly high and limited competition within the payments market.

This dispute first gained public attention when large retailers and other business associations banded together, alleging that the card networks were using their market dominance to maintain inflated fees. Over time, the case expanded to include a wide range of merchants, from small businesses to multinational corporations, who collectively argued that the financial burden of interchange fees was ultimately passed on to consumers in the form of higher prices.

Throughout the years, both Visa and Mastercard have faced legal challenges, and a series of class-action lawsuits have been filed. These lawsuits have not only focused on the fees themselves but also on the lack of transparency in how they were determined and enforced. Merchants claimed that the payment networks’ practices amounted to price-fixing, a violation of antitrust laws. The legal battle escalated over time, with both sides digging in their heels.

The talks have reportedly intensified in recent months, with both Visa and Mastercard keen to resolve the matter without further litigation. According to the sources, the settlement under discussion would likely result in a significant financial payout to merchants, though the exact amount remains undisclosed. The agreement could also include changes to the way interchange fees are structured, potentially leading to lower costs for businesses that accept card payments.

For Visa and Mastercard, the prospect of a settlement would bring an end to a costly and divisive legal fight. Both companies have defended their practices throughout the proceedings, maintaining that the fees they charge are justified by the value they provide in terms of security, convenience, and innovation in the payments ecosystem. However, they also face growing pressure from lawmakers, regulators, and consumers to address the issue of interchange fees, which have been a sticking point in the broader debate on financial services.

For merchants, the settlement represents a significant potential win. Many business owners, particularly in sectors like retail and hospitality, have long argued that interchange fees represent a hidden tax on their operations, undermining their ability to compete. Lowering these fees could provide financial relief, particularly for smaller businesses that often face the highest costs in the payment system.

If the settlement is reached, it could have a ripple effect across the payments industry, influencing how other payment processors and financial institutions structure their fees. Moreover, it could pave the way for further regulatory scrutiny of the broader payments ecosystem, with calls for greater transparency and fairness in the way card networks operate.

In addition to the financial terms, the settlement is also expected to address broader issues within the payments sector. Changes to the way interchange fees are communicated to merchants, improvements in fee structures, and possible new regulations could be part of any final agreement. These changes could not only benefit merchants but also lead to a more competitive environment in the payment processing industry.

By Nitya Chakraborty In Chinese media, lot of interest is focused on the future of the US sponsored security bloc QUAD and what will be India’s relations with it in the backdrop of US President Donald Trump’s strained relations with the Indian Prime Minister Narendra Modi and the last August 30 summit of the Indian […]

The article China Sees Political Coldness In India’s Dealing With Coming QUAD Summit appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

The GCC bond market has experienced a surge in activity this week, with borrowers from various sectors seizing the opportunity to tap into favourable financial conditions. The tightening of borrowing costs has created a window of opportunity for sovereigns, banks, and corporations, leading to a total of nine mandates being issued.

The rush for capital comes at a time when borrowing costs have reached historically low levels. For many issuers, this represents an ideal moment to lock in cheap debt ahead of any potential future rate hikes. Among the most notable developments in this surge are the issuances of subordinated US dollar-denominated instruments, which have become increasingly popular among borrowers.

Sovereign issuers have been particularly active, with a mix of established and emerging players entering the market to raise funds for various development projects. These sovereign bonds are typically seen as safe investments, attracting strong interest from global investors. The preference for subordinated debt, which is ranked lower than senior debt in the event of default, reflects the confidence investors have in the region’s economic stability despite global uncertainties.

Banks, too, have been prominent participants in this market rally. With liquidity abundant, financial institutions have been eager to raise funds through bonds in order to strengthen their balance sheets and support lending activities. Several major GCC banks have launched bond issues, with a focus on long-term debt offerings to manage their refinancing needs and capital adequacy requirements.

Corporate borrowers, meanwhile, have been drawn to the bond market as a means of financing expansion and strategic initiatives. In particular, companies with strong credit ratings have capitalised on the tight borrowing conditions to secure funding at competitive rates. The demand for subordinated instruments has allowed corporates to issue debt with slightly higher yields, while still benefiting from the current low-rate environment.

One of the key drivers behind this bond market activity is the broader economic stability in the GCC region. Despite global challenges such as oil price volatility and geopolitical tensions, the region’s sovereign wealth funds and strong fiscal management have provided investors with confidence. Additionally, the implementation of economic diversification strategies across the Gulf States has helped bolster investor sentiment.

Another contributing factor is the continued strength of the US dollar, which is pegged to most of the GCC currencies. With the Federal Reserve maintaining its policy stance and the dollar remaining strong, issuers are able to tap into deep liquidity pools from global investors who are looking to park funds in stable currencies. As a result, demand for US dollar-denominated bonds from the GCC remains robust, particularly in the context of tightening global financial conditions.

The trend towards subordinated debt issuance has also been partly driven by investor demand for higher-yielding instruments, as investors seek returns in an otherwise low-interest-rate environment. Subordinated debt typically offers a higher yield due to its increased risk profile, making it attractive for investors seeking greater returns, especially as other asset classes provide limited growth.

Looking ahead, it is expected that this trend will continue in the short term as issuers capitalise on the current favourable market conditions. Analysts predict that the next few weeks may see even more issuances, as sovereigns and corporates look to take advantage of tight borrowing costs before any potential shifts in the global financial landscape.

Abu Dhabi National Oil Company is poised to significantly ramp up its global trading operations, with plans to increase the volume it handles by two-thirds over the next few years. This expansion is part of a broader strategy to strengthen ADNOC’s position on the global stage and tap into new revenue streams. The move signals the growing ambition of the UAE’s state-owned oil giant to enhance its commercial footprint beyond traditional oil and gas production.

Since the establishment of its trading arm in 2018, ADNOC has been gradually building its global network, positioning itself as a major player in international energy markets. The company has already set up trading offices in key financial hubs such as Singapore and Geneva, with the United States next on its list. This expansion is seen as a strategic initiative aimed at consolidating ADNOC’s presence in both the fuel trading and energy markets, where it competes with some of the world’s largest oil companies.

Ahmed Bin Thalith, CEO of ADNOC Global Trading, outlined the company’s goals during a recent interview. He explained that ADNOC’s trading operations are central to its broader strategy of extracting greater value from the fuel produced not only in the UAE but from global markets. Thalith emphasized that the expansion of the trading unit is integral to ADNOC’s vision of becoming a more diversified energy enterprise, moving beyond its traditional role as a major oil producer.

The UAE, known for its vast reserves of oil and natural gas, is under pressure to diversify its economy, which is heavily dependent on hydrocarbons. By expanding its trading operations, ADNOC seeks to secure additional revenue streams from the global sale of fuel products, a vital step as the world moves towards a more sustainable energy future. The move aligns with the UAE’s broader vision of positioning itself as a global energy hub, diversifying into renewable energy and other industries, such as technology and manufacturing.

ADNOC’s global trading expansion follows a series of similar moves by other Gulf oil companies seeking to broaden their operations beyond the traditional export of crude oil. Companies like Saudi Aramco have been pursuing similar strategies to increase their influence in the global energy trading market. However, ADNOC’s strategy to build a robust trading platform since 2018 gives it a more established presence in the field. The company is now looking to leverage its growing infrastructure to manage an even greater volume of trades, both within the Middle East and globally.

In addition to expanding its physical presence in strategic locations, ADNOC Global Trading is also exploring new technologies to improve its operations. This includes the use of data analytics and advanced digital tools to monitor and predict market trends, a crucial aspect for maintaining competitiveness in the volatile global energy market. By integrating cutting-edge technology into its trading practices, ADNOC aims to stay ahead of the curve and better position itself in a market where agility and adaptability are paramount.

The decision to enter the U. S. market is one of the more ambitious elements of ADNOC’s expansion plans. The company aims to tap into the largest energy market in the world, which has seen significant changes in recent years due to the shale revolution and growing interest in alternative energy sources. By establishing a presence in the U. S., ADNOC hopes to gain access to new trading opportunities, as well as foster relationships with key players in the global energy sector.

The expansion also reflects ADNOC’s long-term vision of becoming a more diversified energy company that is not solely reliant on crude oil exports. The UAE has been increasingly investing in renewable energy, and ADNOC’s trading division is seen as a key pillar in achieving this transition. As part of its sustainability strategy, ADNOC has set ambitious targets for reducing its carbon footprint and increasing its investment in cleaner energy technologies, including solar power and hydrogen.

Kazakh authorities have initiated the establishment of a national digital-asset reserve fund valued at between US$500 million and US$1 billion, drawing in part on virtual assets seized or repatriated from abroad. The country’s central bank governor, Timur Suleimenov, stated in a London-based interview that the fund will steer clear of direct cryptocurrency holdings, instead placing capital into exchange-traded funds and shares in firms tied to digital assets. The aim is to have operational readiness by year-end or early January.

The planned vehicle is part of a broader push by the government and financial regulators to formalise the role of digital assets within the national economy. President Kassym‑Jomart Tokayev previously called for a dedicated State Fund of Digital Assets and draft legislation for a digital-asset law in his address to the legislature, signalling targets for implementation in 2026. Meanwhile, the central bank’s deputy governor, Berik Sholpankulov, confirmed to parliament that the fund will receive seized crypto assets from criminal proceedings and may also draw on portions of gold and foreign-exchange reserves.

Analysts note that the decision reflects a cautious yet strategic approach: by investing in regulated instruments such as ETFs rather than acquiring tokens directly, Kazakhstan aims to capture value from the digital-asset ecosystem while limiting exposure to price volatility, custody risks and regulatory ambiguity. The fund’s structure may serve as a model for other states exploring sovereign digital-asset exposure.

The initiative also aligns with Kazakhstan’s existing digital-finance agenda. The government has launched the Alem Crypto Fund, a state-backed vehicle that purchased the BNB token of the Binance network through a local partnership, marking one of the first publicly disclosed state-level digital-asset investments in the country. This fund, managed under the Astana International Financial Centre framework, is viewed as a precursor to the larger sovereign reserve vehicle. Kazakhstan has also announced plans for a so-called “CryptoCity” special zone in the Alatau region, intended to embed digital-asset payments, Web3 businesses and new financial-technology infrastructure.

The use of seized assets as a funding source underscores the interplay between regulatory enforcement and strategic investment. Kazakhstan’s law-enforcement agencies reported shutting down 130 unlicensed crypto exchanges suspected of money-laundering activity and seizing virtual assets worth US$16.7 million. These confiscated assets are earmarked for the fund according to public filings.

Financial-market participants view the reserve fund as serving multiple potential roles: diversification of state reserves, hedging against inflation or currency risk, and positioning Kazakhstan as a regional hub for digital-asset finance. One market strategist noted that “sovereign states are increasingly treating digital-asset exposure as part of long-term strategic reserve management rather than purely speculative allocation.”

Nevertheless, the plan is not without challenges. The absence of a clear regulatory framework for digital assets remains an obstacle: although legislation is under development, the timing and specific provisions are still vague. Market observers highlight that without robust custody, auditing and governance mechanisms, the sovereign reserve could prove vulnerable to volatility or operational failures. Further, the reliance on indirect exposure—through ETFs and equities—limits the fund’s upside in the event of a digital-asset price surge, while still subjecting it to broader capital-market risks.

By Nitya Chakraborty US President Donald Trump’s favourite grouping Quadrilateral Security Dialogue (QUAD) is in deep crisis due to the strain in India-US relations in 2025 covering both trade and political issues and also a dip in personal ties between Trump and the Indian Prime Minister Narendra Modi over the role of the US President […]

The article Future Of Trump’s Favourite Grouping QUAD Is At Stake Due To India-US Schism appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Iron ore prices have continued their downward trend, heading towards their most significant weekly decline since February. The ongoing drop in prices is being driven by sluggish demand for steel in China and the tightening profit margins faced by steel mills. These factors have raised concerns about the overall stability of the global iron ore market, particularly in the world’s largest consumer, China.

Steel mills in China, which are the primary drivers of iron ore demand, are facing significant challenges due to rising input costs and tighter margins. The country’s construction and manufacturing sectors, which consume a large portion of steel, have struggled to gain momentum amid slower economic growth. With high input costs and a slowdown in industrial activity, many steelmakers have been forced to curb production, leading to reduced demand for iron ore.

At the same time, steel prices have also been under pressure, further exacerbating the squeeze on mill margins. While there were hopes for a recovery earlier in the year, the anticipated rebound in steel demand has yet to materialise, as economic conditions in China remain uncertain. The country’s industrial output has shown signs of stagnation, with infrastructure projects failing to meet expectations and housing activity continuing to struggle.

In addition to weak demand, iron ore prices have also been affected by rising supply levels. Brazilian mining giant Vale, one of the largest iron ore producers globally, has increased production in recent months, adding to the market’s supply glut. Vale’s expansion of its operations has helped to further ease supply concerns that have plagued the market over the last few years. However, this has created a situation where the supply of iron ore is outpacing demand, particularly given the subdued consumption from China’s steel mills.

The combination of oversupply and weakening demand has led to a decline in iron ore futures. The most actively traded contracts have experienced a significant fall in recent trading sessions, reflecting the broader bearish sentiment in the market. Prices have dropped by as much as 6% this week, marking a notable setback for an industry that had previously seen strong growth due to the post-pandemic recovery phase.

Global iron ore producers are feeling the impact of these declines as well. Companies such as Rio Tinto and BHP have faced a slowdown in earnings growth, despite their dominance in the market. Lower iron ore prices have put pressure on the profitability of these companies, leading to recalibrated forecasts for the rest of the year.

China’s role in the iron ore market remains critical, with the country accounting for over half of global iron ore consumption. However, the shift in the country’s steelmaking practices, including a push towards cleaner and more sustainable steel production, has led to concerns that long-term demand may not be as robust as previously expected. Furthermore, the government’s increasing focus on reducing emissions could eventually affect steel production levels in the country.

Despite these challenges, analysts believe that iron ore prices are unlikely to fall precipitously in the coming months. While demand from China may remain subdued, global steel production is expected to recover in other regions, such as Europe and North America. This could provide some support for iron ore prices, although the pace of recovery remains uncertain.

The U. S. Treasury Department is advancing its legislative plans for the Stablecoin Payments Regulation Act, which has sparked a significant disagreement between cryptocurrency exchange Coinbase and the traditional banking sector. The controversy centers on a provision within the proposed regulation that would restrict the payment of interest on stablecoins.

Coinbase, a leading cryptocurrency platform, has expressed strong opposition to a proposed ban on interest payments. According to Coinbase, such a ban should apply solely to issuers of stablecoins, who manage the supply of these digital currencies. The company argues that exchanges like Coinbase, which merely facilitate transactions and do not control the issuance of stablecoins, should not be subject to the same restrictions. Coinbase’s position is that the distinction between issuers and exchanges is crucial for maintaining the stability and growth of the broader cryptocurrency market.

However, traditional banking associations have raised concerns about the broader implications of stablecoins in the financial system. These groups advocate for a blanket ban on paying interest on stablecoins, extending this prohibition to exchanges and any affiliates involved in their handling. According to these banking bodies, allowing exchanges to pay interest on stablecoins would create an uneven playing field and could lead to significant disruptions in the traditional banking sector. One of their primary concerns is the potential for bank deposit outflows, as consumers may be drawn to the higher interest rates that stablecoins could offer compared to traditional savings accounts.

Stablecoins, which are pegged to traditional fiat currencies like the U. S. dollar, are increasingly becoming a popular method of storing and transferring value within the cryptocurrency ecosystem. These digital assets are known for their stability, making them an attractive alternative to more volatile cryptocurrencies such as Bitcoin or Ethereum. However, the potential for exchanges to offer interest payments on stablecoins raises concerns about the stability of the broader financial system, particularly in the face of growing interest in digital assets.

The clash between Coinbase and banking associations highlights the tension between the rapidly evolving world of digital assets and the more established, regulated financial institutions. Coinbase’s position reflects a broader trend within the cryptocurrency industry to resist overly restrictive regulations that could stifle innovation. The company has long advocated for clearer regulatory guidelines that would allow digital currencies to thrive within the traditional financial ecosystem, rather than be treated as a separate, isolated entity.

On the other hand, traditional banks have been cautious about the rise of digital assets, particularly stablecoins. These institutions argue that the lack of comprehensive regulation for stablecoins creates potential risks for consumers and the financial system. Banks are concerned that if exchanges are allowed to pay interest on stablecoins, it could trigger a shift of funds away from bank deposits into digital currencies, potentially eroding the deposit base that banks rely on to lend and conduct other financial activities. They also warn that offering interest could lead to increased speculative activity, which could ultimately undermine the stability of the financial system.

Shareholders of Tesla, Inc. approved a compensation package for Chief Executive Officer Elon Musk that could deliver up to US $1 trillion in stock over the next decade, with more than 75 per cent of votes cast in favour at the company’s annual meeting in Austin, Texas. The package, contingent on a string of ambitious performance targets, is described by the board and supporters as essential to retain Musk’s leadership and drive the firm’s pivot towards artificial intelligence and robotics.

The award hinges on milestones including delivering 20 million vehicles, deploying 1 million robotaxis, selling 1 million humanoid robots and reaching a market valuation of US $8.5 trillion. If all targets are met, Musk stands to earn shares representing up to 12 per cent of Tesla’s stock, though the net value is estimated at around US $878 billion after accounting for share price and vesting conditions. The package’s approval ends months of debate among institutional investors and proxy advisers who raised concerns about scope, governance and dilution.

The approval signals confidence among many investors in Musk’s capacity to steer Tesla into a future beyond electric vehicles, emphasising his role at the centre of the company’s strategy. Musk, who holds approximately 15 per cent of Tesla shares, made clear on stage that his focus is not merely on compensation but on maintaining influence over the company’s direction, particularly as Tesla deepens its involvement in robotics and chip manufacturing. “What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” he said following the vote.

Critics, however, warn that the structure grants Musk exceptional power and exposes shareholders to significant risk. Among those voting against the package was Norges Bank Investment Management, manager of the world’s largest sovereign wealth fund, which cited the award’s sheer size, potential dilution for other investors and the concentration of decision-making authority in a single individual as key objections. Proxy advisory firms such as Institutional Shareholder Services and Glass Lewis had also advised against the plan on similar grounds.

Tesla’s board chair Robyn Denholm had issued a letter urging shareholders to support the proposal, warning that rejection could risk losing Musk’s time, talent and vision at a pivotal moment for the firm. The board has defended the compensation plan as milestone-based and aligned with shareholder interests because the payout only occurs if Tesla meets rigorous performance thresholds. Supporters argue that Musk’s vision—extending Tesla’s footprint into autonomous mobility, humanoid robotics and AI infrastructure—requires long-term incentives that align his interests with the company’s breakthrough goals.

Even as investors backed the package, many emphasised that achieving the required targets remains a tall order. Tesla’s current market capitalisation sits well below the US $8.5 trillion target, and its robot- and self-driving ambitions face regulatory, technical and competitive headwinds. Some analysts regard the pledge to deliver millions of humanoid robots and robotaxis as speculative, pointing out that Tesla has yet to mass-produce such products. Others observe that Musk’s prior promises—including fully autonomous cars and rapid ramp-ups of production—have been met with delays and regulatory challenges, prompting scepticism among governance watchers.

The vote also underscores Musk’s increasingly prominent role across multiple business ventures including xAI and SpaceX, and the extent to which Tesla’s governance is intertwined with his broader ambitions. The compensation plan’s structure gives Musk additional voting control tied to his share stake, a move applauded by advocates who say it ensures continuity of leadership, and criticised by opponents who say it entangles corporate oversight and creates “key-person risk”.

Bitcoin’s fair value, according to JPMorgan Chase, should be as high as $170,000, based on a model that compares it to gold’s market role. The investment bank argues that Bitcoin should represent two-thirds of gold’s private investment base, a significant increase from its current value of approximately $102,000 per Bitcoin.

JPMorgan’s analysis draws from its long-standing views on digital assets and traditional commodities, asserting that Bitcoin is on a path to becoming an essential part of the global investment portfolio, particularly among institutional investors. The bank’s model incorporates risk capital metrics and examines the private investment demand for both Bitcoin and gold. As more institutional investors seek exposure to digital assets, Bitcoin is increasingly seen as a hedge against traditional financial uncertainties.

According to the model, Bitcoin’s rise aligns with the expanding use of blockchain technology and cryptocurrencies as a store of value, much like gold has functioned for centuries. This comparison has gained traction, particularly as Bitcoin’s network effects and its decentralized structure differentiate it from other assets. JPMorgan believes that Bitcoin’s potential growth is rooted in its ability to scale and the growing adoption of cryptocurrencies in the financial system.

While Bitcoin’s market capitalisation currently lags behind gold, JPMorgan’s model suggests that it could capture a significant portion of the gold market, primarily in the realm of private investment. The bank’s forecast is based on the assumption that Bitcoin will continue to prove its resilience and utility as an asset, making it increasingly attractive to both institutional and retail investors alike. JPMorgan’s analysis takes into account Bitcoin’s volatile price history, yet the bank remains optimistic about its long-term potential as the digital asset continues to mature.

The bank’s prediction of a $170,000 fair value for Bitcoin is a sharp contrast to its current trading price, which fluctuates in the $30,000 to $35,000 range. However, JPMorgan notes that such a valuation is achievable if Bitcoin continues to gain market share from traditional assets like gold, especially as demand for hedging against inflation and economic uncertainty rises. Additionally, the introduction of Bitcoin ETFs and other investment products could help bridge the gap between digital currencies and mainstream financial markets, facilitating broader adoption.

For JPMorgan, Bitcoin’s fair value also hinges on broader regulatory developments. While the US and other countries have begun to establish clearer regulatory frameworks for cryptocurrencies, the landscape remains uncertain, which could impact Bitcoin’s trajectory. However, JPMorgan suggests that clearer regulations could bring more institutional investors into the space, providing further support for Bitcoin’s long-term growth.

JPMorgan’s bullish outlook on Bitcoin comes amid a broader market trend where digital assets, particularly Bitcoin and Ethereum, are becoming integral to the portfolios of both retail and institutional investors. This shift is propelled by growing recognition of the asset class’s potential to diversify traditional investment portfolios and provide exposure to the evolving digital economy. The rise of decentralized finance platforms and the increasing use of blockchain technology in various industries have helped position Bitcoin as a viable alternative to traditional store-of-value assets like gold.

Bitcoin’s integration into the financial ecosystem is also supported by advancements in blockchain infrastructure and the growing acceptance of cryptocurrencies in various sectors, from payments to banking to supply chain management. As these applications expand, Bitcoin is poised to become a more integral component of financial markets, reinforcing JPMorgan’s argument that its fair value could reach $170,000.