Bitcoin Overtakes Google in Value

CRYPTO
Bitcoin Overtakes Google in Value

Bitcoin (BTC) has surged past $94,000, becoming the fifth-largest asset by market capitalization at $1.86 trillion—surpassing Google (GOOG). This is the highest ranking Bitcoin has ever reached, despite its market cap topping $2 trillion in the past when prices exceeded $109,000. Back then, tech stocks were valued higher overall, keeping Bitcoin lower in relative rankings.

This latest rally has turned Bitcoin positive for the year, driven by renewed investor confidence and easing tensions in the U.S.–China trade war. The broader market is also responding, with Nasdaq futures up 2%. Bitcoin has now broken through major technical resistance levels identified earlier this week, signaling strength across both crypto and traditional markets.

It’s also outperforming tech indices like the Nasdaq, marking a breakout that positions Bitcoin as a leader not just in crypto, but among top global assets. The momentum could fuel further gains if current macro trends continue.

FINANCE
Banks Brace for Economic Downturn

Consumer spending remains steady despite ongoing stock market volatility caused by President Trump’s "Liberation Day" tariffs. Credit card companies, in their latest earnings reports, signaled continued consumer resilience, even as economic uncertainty grows. Citi’s CFO Mark Mason noted a shift in spending habits, with consumers focusing more on essentials and less on discretionary categories like travel and entertainment.

Spending levels are up: JPMorgan Chase reported a 7% year-over-year increase in card activity, and Bank of America saw a 4% rise. However, elevated credit card balances and rising delinquencies signal growing financial strain.

To prepare for a possible downturn, major banks are bolstering reserves. JPMorgan added $973 million to its credit loss buffer, raising its total to $27.6 billion, and boosted loan loss provisions to $3.3 billion. Citi followed suit, increasing its reserves by $1 billion and raising its cost of credit by over 15%. Both banks emphasized their strong liquidity positions as they brace for economic headwinds.

TECH
SK Hynix Crushes Profit Forecasts

SK Hynix exceeded expectations for Q1 revenue and operating profit, fueled by strong demand for its high bandwidth memory (HBM) used in AI chipsets. The company reported revenue of $12.36 billion, surpassing estimates of $12.09 billion, and operating profit of $5.22 billion, topping the forecast of $4.64 billion. Compared to the same period last year, revenue rose 42% and operating profit soared 158%, though both figures were down from record highs in the previous quarter.

Despite broader economic concerns, including U.S. tariff risks, SK Hynix remains optimistic about sustained AI-driven growth. The company pointed to expanding Big Tech investments, government-backed AI projects, and breakthroughs like DeepSeek’s R1 model as key drivers. SK Hynix now commands 70% of the global HBM market and, for the first time, has overtaken Samsung in overall DRAM market share.

To meet future demand, the company will invest $14.6 billion in a new chip fabrication plant in Cheongju, with production starting in late 2025.

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.