New Zealand’s Global Dairy Trade (GDT) Price Index has dropped to 1.5%, down from 6.3%. This shift shows changes in the market and could affect the entire dairy industry.

New Tariffs and Trade Changes

President Trump has proposed new tariffs on goods from several European countries, starting with a 10% tariff on February 1. Additional increases are possible, leading to uncertainty in global trade. Gold reached an all-time high of $4,760 per troy ounce on Tuesday. This rise is fueled by geopolitical tensions and fears of trade conflicts, which have weakened the US dollar. Bitmine Immersion Technologies has boosted its Ethereum (ETH) holdings to 4.2 million ETH, approaching its goal of 5% of the total ETH supply. This new amount represents 3.48% of the current circulation, showing a strategic buying approach. Cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are seeing price drops. Rising geopolitical tensions over Greenland are influencing a risk-averse attitude in the market.

Market Volatility and Strategies

With the new tariff threats against major European countries, we should expect increased market volatility. In 2025, trade tensions led to a more than 40% spike in the VIX, a key fear indicator, in just a few weeks. Consider buying VIX call options or options on major indices as a safeguard against this upcoming uncertainty. Gold’s rise to $4,760 directly responds to geopolitical tensions and the weakening US dollar. Many expect this trend to continue, similar to the 15% rally seen in late 2024 during a similar situation. Call options on gold futures or related ETFs could allow you to benefit from this upward trend. The sharp drop in New Zealand’s GDT price index is a warning for the Kiwi dollar. The decline from 6.3% to 1.5% indicates lowered demand for their key export. Historically, such a significant drop in GDT has led to a 1-2% decrease in the NZD/USD exchange rate within a month. The crypto market is acting like a classic risk asset, with Bitcoin and Ethereum declining due to the Greenland news. This scenario opens opportunities for short-term bearish trades, such as buying put options or shorting futures. The connection between crypto and tech stocks during risk-off times has remained around 0.75 since the market downturn in 2025. Yet, there is a contrasting signal in the Ethereum market. While prices are falling, Bitmine is aggressively buying more ETH, adding another 35,628 ETH. This trend of institutional buying in a down market resembles patterns from Q4 2025 when major wallets increased their holdings by 8% while retail investors sold. Create your live VT Markets account and start trading now.

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