Bitcoin Soars Past $93,000

CRYPTO
Bitcoin Soars Past $93,000

Bitcoin (BTC) skyrocketed past $93,000 on Tuesday, jumping nearly 7% as investor optimism surged over a potential easing of U.S.-China trade tensions. U.S. Treasury Secretary Scott Bessent, speaking at a private JPMorgan event, labeled the tariff standoff with China “unsustainable,” hinting at de-escalation “in the very near future.” President Trump reinforced the sentiment, announcing U.S. tariffs on China, currently at 145%, “will come down substantially,” calming fears of a trade war.

The crypto market rallied, with Ethereum’s ether (ETH) up 8%, dogecoin (DOGE) gaining 8.6%, and the CoinDesk 20 Index rising 5.2%. However, CryptoQuant warned of headwinds, citing declining BTC demand, bearish on-chain metrics, and resistance near $91,000-$92,000. Despite strong ETF inflows and a Coinbase price premium signaling institutional interest, soft market liquidity and a bearish on-chain bull score suggest a potential pause or pullback looms.

TECH
Tesla Robotaxi Launch Nears

Elon Musk reaffirmed Tesla’s ambitious plan to launch its robotaxi service in Austin by June, emphasizing a rapid rollout of fully autonomous Model Y vehicles. Speaking on Tesla’s Q1 earnings call, Musk projected 10-20 robotaxis on day one, with swift expansion to multiple U.S. cities by late 2025, significantly boosting revenue by 2026. Despite Tesla’s Q1 automotive revenue dropping 20% and net income falling 40% to $409 million, Musk’s focus on autonomy lifted shares 5% after-hours.

However, skepticism persists, as Tesla’s current Level 2 autonomy lags behind competitors like Waymo’s Level 4. Musk sidestepped details on bridging this gap, only hinting at advanced, unreleased software. Critics highlight safety concerns, citing past Autopilot and FSD incidents. Tesla’s CFO noted remote support and simulations to address rare edge cases, but Musk urged skeptics to “see for themselves” in Austin.

TECH
Tesla's Profits Collapse in Q1

Even Tesla’s biggest bulls warned Q1 would disappoint, and the numbers were even worse. Automotive sales dropped 20% year-over-year to $14 billion, while overall revenue fell 9%. Net income plunged nearly 40% to $409 million—far below Wall Street’s $600 million estimate. When stripping out non-recurring items like regulatory credit sales and Bitcoin gains, Tesla’s core, or “hardcore,” earnings show it actually lost money last quarter.

Over the past year, these repeatable earnings totaled $3.5 billion, a sharp drop from $12 billion in 2022. At its current $812 billion valuation, Tesla trades at over 230 times those adjusted profits. If its real business is worth $70 billion at a generous P/E of 20, the remaining $742 billion depends on Musk delivering future miracles—like robotaxis and AI-powered software—none of which have materialized. Still, markets rallied after Q1 on new promises: a cheaper Model Y by 2025 and robotaxis by 2026. The show goes on.

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.