Fast Facts
- Bitcoin surged towards $97,000 on Thursday, with altcoins showing larger gains.
- U.S. stocks rallied following impressive earnings results from Microsoft and Meta.
- The U.S. Chamber of Commerce fears tariffs will inflict devastating damage on small businesses and pleads for immediate relief.
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Bitcoin's price burst beyond $97,000 on Thursday, fueled by exuberant earnings reports from Microsoft and Meta that propelled stocks skyward on Wall Street. Yet, Microsoft flashed a grim warning: sweeping tariffs could wipe out thousands of small businesses, as per their apprehensions.
Crypto data provider CoinGecko confirmed that Bitcoin was trading around $96,600, reflecting a 2.7% surge over the previous 24 hours. Ethereum and Dogecoin followed suit, recording gains of 3.5% to $1,850 and 5% to $0.18, respectively.
Microsoft and Meta's Q1 profits surpassed analyst expectations, suggesting Trump's trade war hasn't disrupted the performance of the "Magnificent Seven" stocks or the artificial intelligence trade that briefly catapulted chipmaker Nvidia into the world's most valuable corporation last year. Nvidia's stock value jumped 2.6% to $112, according to Yahoo Finance.
As Trump prepares his visit to the U.A.E. next month, the U.S. is contemplating a bilateral chip deal that may loosen restrictions on Nvidia sales to the region, Bloomberg reports.
Steven Lubka, Swan Bitcoin's head of private clients, attests that Bitcoin draws strength from a risk-on sentiment, despite its recent bullishness tied to tariff-induced turmoil and gold's decline.
"Wall Street's mantra lately is 'heads we win, tails we win,'" Lubka said. "Bitcoin either rallies alongside gold when the economic situation deteriorates, or it soars if the tariff situation resolves."
The U.S. economy shrunk by 0.3% annually in Q1, increasing recession anxieties, as stated by the U.S. Bureau of Economic Analysis. Some analysts posit that Bitcoin could thrive if a slowdown compels the Federal Reserve to lower interest rates.
In a plea to the White House, the U.S. Chamber of Commerce voices concern over the potential "irreparable" harm tariffs could inflict on small businesses, which struggle to cope with increased costs and supply chain disruptions. In response, the Chamber has put forth three recommendations:
- Automatic Exclusions for Small Businesses: The Chamber wants automatic tariff exclusions for all small business importers.
- Exclusion Application Based on Employment Impact: The Chamber advocates for a process that allows companies to apply for tariff exclusions if they can demonstrate adverse employment consequences.
- Exclusions for Products Not Available in the U.S.: The Chamber supports exclusions for all products unavailable domestically or lacking ready availability.
These proposals aim to provide a lifeline to small businesses until comprehensive trade agreements are forged without straining their immediate cash flows.
Lubka asserts that the market was initially jittery about tariffs but is starting to realize they won't persist indefinitely, leading investors to rethink their impact.
- The surge in Bitcoin's price towards $97,000 on Thursday was fueled by exuberant earnings reports, not just from Bitcoin itself, but also from Microsoft and Meta, which propelled stocks skyward.
- Following impressive earnings results from Microsoft and Meta, cryptocurrency like Bitcoin, Ethereum, and Dogecoin showed gains, with Bitcoin trading around $96,600, Ethereum at $1,850, and Dogecoin at $0.18.
- While U.S stocks rallied due to the impressive earnings results, Microsoft issued a warning about the potential damage that sweeping tariffs could inflict on small businesses.
- CoinGecko, a crypto data provider, confirmed Bitcoin's 2.7% surge over the previous 24 hours, while Ethereum and Dogecoin recorded gains of 3.5% and 5%, respectively.
- The "Magnificent Seven" stocks, including Microsoft and Meta, and the artificial intelligence trade, have not been significantly disrupted by Trump's trade war, as suggested by their Q1 profits exceeding analyst expectations.
- Despite the ongoing tariff-induced turmoil and gold's decline, Steven Lubka, the head of private clients at Swan Bitcoin, believes Bitcoin draws strength from a risk-on sentiment.
- In a plea to the White House, the U.S. Chamber of Commerce is urging for three recommendations to provide a lifeline to small businesses struggling under tariffs: automatic tariff exclusions for small business importers, a process for companies to apply for tariff exclusions if they can demonstrate adverse employment consequences, and exclusions for all products unavailable domestically or lacking ready availability.
