Bitcoin Drops, Crypto Market Stumbles

CRYPTO
Bitcoin Drops, Crypto Market Stumbles

The crypto market stumbled as Bitcoin dropped 5% to $97,000 on Tuesday, triggering $205 million in liquidations within an hour. The decline marked a 6% drop in the market's total value over 24 hours, following its November election highs.

According to Columbia University professor Omid Malekan, the market’s pullback reflects fading excitement over President-elect Donald Trump’s pro-crypto victory. “The positive news from the election is mostly priced in,” Malekan said. “Now, investors are waiting to see how Trump delivers on his promises.”

During his campaign, Trump vowed to establish a national Bitcoin stockpile, appoint crypto advocates, and push for industry-friendly regulations. While he’s already named an AI and crypto czar, key questions remain about how pro-crypto his administration will be once in office.

The downturn follows Bitcoin's surge to $108,000 on Dec. 17, buoyed by Trump’s win and Federal Reserve rate cuts. Since then, Bitcoin has retreated, testing investor patience as markets brace for clarity on crypto policy.

TECH
Nvidia's Market Cap Surpasses Rivals

Nvidia’s market cap has soared to $3.66 trillion, surpassing the combined value of competitors AMD, Arm, Intel, and Broadcom—and doubling it. As of Monday, Nvidia’s valuation dwarfed AMD’s $210 billion, Intel’s $86 billion, Arm’s $155 billion, and Broadcom’s $1.1 trillion combined. Even after a 5% share drop on Tuesday, its market cap held strong at $3.47 trillion.

Under CEO Jensen Huang, Nvidia's growth has been meteoric. The company briefly overtook Apple as the world’s most valuable firm in 2024 and is now the undisputed leader in the global chip market. Over the past year, Nvidia’s stock has jumped 170%, and revenue surged 93% to $35.1 billion. Analysts predict its market cap could hit $5 trillion within 18 months.

However, concerns loom about market reliance on the “Magnificent Seven” stocks, including Nvidia, which contributed heavily to the S&P 500’s performance in 2024.

TECH
Meta Adopts Musk's Community Notes

Mark Zuckerberg announced a major shift in Meta's content moderation policies, ditching third-party fact-checking on Facebook and Instagram in favor of a community notes system inspired by Elon Musk’s X. In a video, Zuckerberg stated that Meta’s previous approach led to “too many mistakes and too much censorship,” emphasizing a return to free expression and reduced content filtering.

Meta will now prioritize user-generated content notes while focusing moderation on illegal material. Zuckerberg argued that fact-checkers had become politically biased, eroding trust rather than fostering it. He also pledged to loosen restrictions on mainstream discussions around immigration and gender, saying it’s time to “give people a voice.”

This move aligns Meta closer to President-elect Donald Trump’s free speech stance. Meta recently donated $1 million to Trump’s inauguration, and Zuckerberg dined with him at Mar-a-Lago, signaling a shift in their relationship. Zuckerberg even plans to relocate content review operations to Texas, mirroring Musk’s earlier decisions.

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.