Bitcoin Soars as Dollar Weakens

CRYPTO
Bitcoin Soars as Dollar Weakens

Bitcoin jumped over 2% to $87,200, its highest since April 2, as the U.S. dollar index (DXY) fell to a three-year low. The drop came after reports that President Trump is seeking to remove Federal Reserve Chairman Jerome Powell, raising concerns about the Fed’s independence. Gold surged to a record $3,382 per ounce, up 28% year-to-date, as investors sought safety.

Bitcoin led the crypto market, outperforming altcoins like Ethereum, XRP, and Cardano, which rose over 1% each. In forex markets, hedge funds sold the dollar against the euro, yen, and Australian dollar, dragging the DXY to 98.5—down 10% in three months. Futures on the S&P 500 and Nasdaq dipped 0.5%. Analysts say the dollar’s weakness and gold’s rally reflect investor anxiety over political interference in monetary policy. Trump’s public criticism of Powell and calls for lower interest rates have further fueled volatility in markets and increased demand for non-traditional assets like BTC.

ECONOMY
Gold Surges Amid Trade Tensions

Gold surged to a record high of $3,364 per ounce as escalating global tensions and a weakening U.S. dollar boosted demand for safe-haven assets. The ongoing U.S.-led trade war, particularly under the Trump administration's tariff policies, has rattled investor confidence and weighed on global growth prospects. The International Monetary Fund is expected to downgrade its global growth forecast this week, while upcoming purchasing manager indexes could reveal early signs of economic slowdown.

Gold has hit a series of record highs in 2025, with investors fleeing risk assets in favor of stability. Bullion-backed ETFs have seen inflows for 12 straight weeks—the longest streak since 2022—while central banks continue to increase their gold reserves. Gold traded at $3,363.34, slightly off its intraday high, while the Bloomberg Dollar Spot Index slipped 0.5%. Silver also climbed, platinum remained steady, and palladium edged lower, reflecting a broader shift toward traditional hedges.

TECH
China’s AI Chipmakers Gain Ground

As the U.S. tightens export controls on Nvidia’s AI chips, China’s domestic semiconductor industry is seizing the opportunity. Nvidia’s H20 GPUs—designed to comply with earlier restrictions—will now need export licenses, impacting sales and leading to a $5.5 billion quarterly charge. While a blow to Nvidia, the move may accelerate the rise of Chinese chipmakers like Huawei and Cambricon Technologies. Huawei’s “Ascend” series, including the 910C, is gaining momentum despite lagging in some areas.

Cambricon’s shares jumped over 10% recently and are up 400% over the past year. However, production challenges remain. U.S. restrictions also affect China’s top foundries like SMIC, limiting their access to advanced tools. Experts say Chinese companies won’t immediately fill Nvidia’s void due to stockpiles and previous exemptions. But longer-term, export controls may backfire by pushing China to innovate and reduce reliance on U.S. technology. The coming months could bring even stricter AI export rules for Nvidia.

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.