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US Government Shutdown Looms

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Shutdown LoomsSenate Democrats may block a GOP funding bill, pushing for a clean continuing resolution amid rising tensions over fiscal negotiations.

Trade War EscalatesTrump threatens 200% tariff on European wine and spirits in retaliation for EU's 50% whiskey tariff, causing market turbulence.

Markets Tumble — Global stocks plunged on trade war fears, driving investors to safe havens like gold (near $3,000), US Treasuries, and the dollar.

Debt Crisis WarningRay Dalio warns of an imminent debt crisis if foreign governments stop purchasing US debt.

Green Fund FreezeCitibank froze accounts linked to the Greenhouse Gas Reduction Fund at federal agencies' request; three nonprofits sued for funds release.

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COMPANIES TO WATCH

Thanks — Raised $2.6M in seed funding to expand its ad network, partnering with $EBAY ( ▲ 1.15% ) and Zip, and achieving 20% monthly growth across the US, UK, and ANZ.

Rocket Lab — Plans to raise up to $500M via an equity offering to fund acquisitions and general corporate purposes, according to an SEC filing.

Browser Use — An AI tool from Butterfly Effect surged downloads from 5K to 28K daily, aiding AI agents in tasks; AI agent market projected to hit $42B by 2029.

Fervo Energy — Considering an IPO within two years due to rising data center power demand. Recently raised funds for geothermal commercialization, including a project powering Nevada grid with $GOOGL ( ▲ 1.92% ).

Manus AI — Partnered with Alibaba's Qwen team to enhance AI capabilities, leveraging o-s models to compete with OpenAI/DeepSeek and expand its user base.

THE HOTTEST THING IN TECH
Government Shutdown, Stocks Plunge, and Grok AI Crypto Tokens  

The U.S. is potentially hours away from a government shutdown over Pres. Trump’s controversial crypto reserve plan, Wall Street is sliding into correction territory, and escalating trade wars between the U.S. and EU are further rattling markets. Central banks worldwide are quietly stockpiling gold as a hedge against uncertainty, while the US is rethinking what role digital assets will play in government policy and financial reserves moving forward. These aren’t just headlines—they’re signals. The decisions made today will define where capital flows, how companies operate, and where the next opportunities emerge.

The Shutdown Showdown Moves Markets

At midnight tonight (March 14, 2025), the U.S. government could shut down, with Congress failing to agree on a spending bill. The Republican-led House passed a funding extension, but Senate Democrats are holding firm, citing concerns over spending cuts and executive power. The impact is already showing:

  • The $SPX ( ▲ 0.58% ) is down 10% from highs, officially entering correction territory.

  • The $NASDAQ ( 0.0% ) has plunged nearly 2%, with tech stocks leading losses.

  • The $DOW ( ▲ 2.78% ) is down 1.3% (about 550 points) amid investor concerns over economic stability.

While previous shutdowns have been inconvenient but manageable, this one is different. It’s happening against the backdrop of a fragile economy, a tightening Federal Reserve, and mounting global tensions. One irony is that some Democrats fear that if they shut down the government, the president is the person who decides what is essential… so you are actually giving him even more power, and that it “leaves Elon Musk alone in the candy store,” to enact more DOGE cost-cutting efforts. It seems Dems have a pretty stark choice to make.

Trump’s Bitcoin Gambit: A Turning Point for Crypto?

In an unprecedented move, President Trump signed an executive order on March 7 creating the Strategic Bitcoin Reserve, a government-held stockpile of 200,000 $BTC.X ( ▲ 3.6% ) ($17.5 billion) sourced from seized assets. Supporters argue this signals that Bitcoin is now a legitimate government-backed asset, potentially setting the stage for mainstream institutional adoption, but some lawmakers and market analysts aren’t so sure.

Critics, however warn that Trump’s control over a massive BTC reserve could be a political tool, with some Democrats launching a congressional probe into the potential for market manipulation. Investors are also split over broader crypto policy questions; If the U.S. is holding crypto, does that mean future regulations will be friendlier? Or will this lead to more centralization as the government establishes dominance over digital finance, or a de-facto CBDC by controlling private markets?  

Grok’s AI-Meme Coin Explosion

As Washington wrestles with institutional crypto reserves, the private sector is seeing its own chaotic crypto experiment unfold—this time, thanks to AI. The Grok AI was prompted by traders to launch 17 meme coins on Bankrbot, an AI crypto automation tool on X. The most successful, DebtReliefBot (DRB), hit a $40 million market cap before dropping to $15 million, with Grok’s associated wallet accumulating over $600,000 in transaction fees from trading volume despite the xAI team having nothing to do with the tokens.

Bankrbot has since disabled Grok’s ability to create new tokens, but it seems we have an answer to the question, can AI accidentally create financial instruments or was it just a memecoin? AI-driven financial automation has flown under the radar, but Grok’s incident may force regulators to act. If AI can move markets, we’re entering a new era of algorithmic influence over finance, with all the risks and rewards that come with it.

The Trade War Continues

An even bigger economic story is unfolding in international trade.

  • On March 12, Trump imposed 25% tariffs on steel and aluminum imports, citing the need to protect domestic industries.

  • The EU retaliated with tariffs on U.S. goods, including a 50% tax on US whiskey.

  • On March 13, Trump escalated, threatening a 200% tariff on European wine if the EU doesn’t back down.

The result? Market turbulence, higher costs for manufacturers, and potential global supply chain disruptions that could impact everything from AI chips to electric vehicle production.

Economic analysts at UBS and Deutsche Bank warn that rising trade barriers could deepen the stock market correction already in progress. For investors, this means:

  • Tech hardware companies may face higher production costs, making supply chain diversification more urgent.

  • Crypto could see inflows from investors seeking assets outside of government-controlled systems.

  • VCs should expect startups in manufacturing and AI hardware to rethink sourcing strategies amid the escalating tariff war.

The Flight to Hard Assets: Gold Surges

With markets under stress, central banks are doubling down on gold as a hedge against economic instability.

  • Over 1,000 tons of gold were added to global reserves in 2024.

  • China’s gold reserves hit a record 2,290 tons in February 2025.

  • Gold prices have surged to an all-time high of $2,940 per ounce.

This mirrors the growing interest in Bitcoin as a "digital gold" alternative. While Bitcoin’s volatility in market downturns remains a concern, the parallels between gold accumulation and crypto adoption highlight a broader shift toward decentralized and government-independent stores of value.

What Comes Next?

For tech investors, founders, and finance professionals, the coming months will be defined by volatility (possibly in the shape of a deep recession or crash), and shift regulation in crypto and finance. 2025 is shaping up to be a year of structural change in both traditional and digital markets. Those who adapt quickly to the new realities will be best positioned to thrive.

Making AI cheaper – and not just bigger or better – is far more impactful to the rest of the world, something that tech leaders in their cloistered bubbles have failed to appreciate. When small organizations can do big things with AI, that promises a healthier and more dynamic market.

— Parmy Olson, Bloomberg Technology Columnist

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BUZZY TOOLS
Buzzy Tech Tools To Watch & Use

GoogleGemini Robotics models for real-world tasks + Gemma 3 Advanced open AI models

OpenAI — New tools like Responses API for building effective AI agents.

CartesiaSonic 2.0 & Turbo voice AI models clone voices in 3 secs.

Meta — Testing AI chip with TSMC for rec. systems and gen. AI by 2026.

Dapr — Supports AI agents using virtual actors for efficient orchestration.

Harvey — Adds Agentic workflows for enhanced collaboration, efficiency.

Eraserbot — Free, automates documentation updates to sync diagrams with code.

DEEP TECH
The Latest Technology & Trends To Watch

Supersolid LightZero viscosity state created from light, advancing quantum.

Steampunk Fusion ReactorGeneral Fusion achieves plasma.

Electric Seaglider — 12-passenger flying machine starts sea trials in Rhode Island.

Google's Lithium-Ion Shift100M cells improve data center efficiency.

2D Metal Sheets — China's new atomic-scale metals advance materials tech.

Tiny Microcontroller — TI's 1.38 mm² microcontroller for wearables, costs $0.16.

AI-Generated PaperAI paper passes peer review at ICLR, withdrawn for review.

SPACE_RACE

NASA_Launches SPHEREx telescope to search for life ingredients

ISS Crew-10_SpaceX to launch 4 astronauts, Boeing Starliner crew return

Starlink India_Partners with Jio & Airtel to provide satellite broadband services

Sunbird Rocket_Nuclear fusion drive promises Mars in 4 months, Pluto 4 years

Relativity Space_Ex-Google CEO Eric Schmidt takes helm, preps for 2026 launch

[NEW FEATURE] CRYPTO WATCH

Sen. Lummis — Reintroduced a bill to establish a strategic Bitcoin reserve in the US, initially proposed during Trump’s administration, aiming to bolster national security and economic stability.

Binance — Secured a $2B investment from Abu Dhabi's MGX, which also acquired a minority stake in the crypto exchange.

Crypto Broker Tax Rule — The House voted to repeal a controversial tax rule affecting crypto brokers, advising consultation with accountants for financial or tax advice.

GarantexAleksej Besciokov, co-founder, was arrested in India for alleged money laundering linked to North Korean hackers. Garantex has suspended operations and plans to reimburse users.

Fidelity & Franklin — The SEC approved staking for their spot Ethereum ETFs, enhancing crypto legitimacy in traditional finance and attracting institutional and retail investors.

MEMETICS
This Meme Broke the Internet Last Week

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