Bitcoin Dropped After Powell's Remarks

CRYPTO
Bitcoin Dropped After Powell's Remarks

Federal Reserve Chair Jerome Powell raised concerns about the impact of President Trump's tariffs on the economy, warning of higher inflation and slower growth. Powell’s remarks caused both Bitcoin and stocks to drop, with Bitcoin falling about 2.5% to $83,700. The Fed’s hawkish stance suggests that a May rate cut is unlikely unless drastic changes occur in the market.

Powell highlighted the potential for stagflation, recalling the 1970s period of weak economic growth combined with high inflation. He also emphasized the need for a legal framework for stablecoins as crypto gains mainstream attention. Powell’s comments also pressured U.S. stocks, with the Nasdaq dropping 3.4%. Despite market volatility, Powell downplayed the severity of recent disruptions, leaving investors uncertain about future rate cuts. This hawkish outlook could continue to weigh on risk assets, including Bitcoin, with the bull case for crypto remaining distant.

TECH
OpenAI Shifts Approach to AI Safety

OpenAI has announced a shift in its approach to AI safety, stopping pre-release testing of models for risks such as manipulation or election interference. Instead, it will address these risks through terms of service, restricting AI use in political campaigns and lobbying, and monitoring usage for violations. The company now considers releasing models deemed “high risk” if adequate safeguards are in place, and may release “critical risk” models if a competitor has already done so.

The changes, detailed in an update to OpenAI’s Preparedness Framework, have split experts. Some praised the clearer risk categories and focus on emerging threats, while others criticized the removal of persuasion from the framework’s core risks. Critics argue this downgrades the importance of AI’s persuasive power, which could be dangerous in vulnerable contexts like authoritarian regimes or among low AI-literacy groups. Concerns also arose over OpenAI’s shift towards competitive pressures, potentially prioritizing speed and revenue over safety.

TECH
TSMC Beats Q1 Profit Expectations

Taiwan Semiconductor Manufacturing Company (TSMC) reported better-than-expected profits for Q1, driven by strong demand for AI chips. TSMC’s Q1 revenue reached approximately $27.5 billion, surpassing the expected $27.3 billion, while net income increased 60.3% year-over-year to about $10.5 billion. High-performance computing, including AI and 5G applications, was the primary growth driver, accounting for 59% of total revenue. Advanced technologies, such as 7-nanometer and smaller chips, made up 73% of total wafer revenue. CEO C.C. Wei highlighted continued growth in AI-related demand but noted the impact of smartphone seasonality in Q4. Despite facing potential headwinds from U.S. trade policies, including tariffs and semiconductor export controls, TSMC expects strong growth in its 3-nanometer and 5-nanometer technologies in 2025. The company has also committed to diversifying its supply chain with investments in U.S. manufacturing. However, TSMC’s Taiwan-listed shares have fallen over 20% this year.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.