Bitcoin Fear at Extreme Levels

CRYPTO
Bitcoin Fear at Extreme Levels

Fear in the Bitcoin market is at extreme levels, with panic selling and uncertainty gripping investors. Many are worried about regulatory crackdowns, major sell-offs from institutions, and global economic instability. The rapid price drop has triggered concerns about further declines, leading to hesitation among buyers and increased liquidation pressure across exchanges.

The cryptocurrency market is currently experiencing heightened anxiety, with the Bitcoin Fear and Greed Index plunging to 10, indicating "Extreme Fear"—a level not observed since the collapse of major crypto firms in 2022.

Several factors contribute to Bitcoin's recent downturn:

1. Policy Uncertainty: President Donald Trump's confirmation of impending 25% tariffs on imports from Canada and Mexico has intensified economic uncertainty, leading to a sell-off in risk assets, including cryptocurrencies.

2. Security Breaches: A significant $1.5 billion hack of the Bybit crypto exchange has undermined investor confidence, raising concerns about the security of digital assets.

3. Market Dynamics: The market has seen substantial outflows from Bitcoin ETFs, with over $1 billion withdrawn in recent weeks, indicating a shift in investor sentiment.

TECH
Nvidia Smashes Earnings Expectations Again

Nvidia once again surpassed expectations, reporting record Q4 revenue of $39.3 billion, a 12% increase from last quarter and 78% year-over-year. Full-year sales reached $130.5 billion, up 114%. The company’s guidance for next quarter projects $43 billion in revenue, slightly above Wall Street forecasts.

Despite the strong results, gross margins declined for a second consecutive quarter to 73.5%, with expectations of a further dip due to the Blackwell chip rollout. Nvidia’s data center business, which dominates its revenue, saw a 93% year-over-year increase to $35.6 billion, exceeding estimates.

Nvidia’s stock surged 171% in 2024, driving a significant portion of the S&P 500’s gains. The company’s earnings are seen as a key indicator for the AI sector. Despite concerns over Chinese AI startup DeepSeek and geopolitical risks, Big Tech continues to invest heavily, with Meta, Amazon, Google, and Microsoft planning $320 billion in AI infrastructure spending.

FINANCE
Rolls-Royce Profits Soar 57%

Rolls-Royce posted a strong 2024 performance, reporting £2.46 billion in operating profit, a 57% increase from the previous year and surpassing analyst expectations. The British aerospace company also reinstated its dividend at 6 pence per share after a five-year break and announced a £1 billion share buyback program.

The company attributed its strong results to robust deliveries in 2023 and 2024, leading it to raise mid-term guidance, with operating profit expected to grow to between £3.6 billion and £3.9 billion. Shares surged as much as 16% on the news, hitting a 52-week high and ranking among the top performers on the Stoxx 600 index.

CFO Helen McCabe highlighted the company’s ongoing transformation, stating that Rolls-Royce has made “significant progress” in strengthening its balance sheet and expanding earnings potential. The £1 billion buyback will be completed in 2025, further boosting shareholder confidence.

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.