Bitcoin Surges on Trade Hopes

CRYPTO
Bitcoin Surges on Trade Hopes

Risk assets, including crypto, are climbing Wednesday evening amid optimism over a potential U.S.-China trade breakthrough. Bitcoin surged 3% in the past two hours, crossing $97,000. U.S. Treasury Secretary Scott Bessent noted, “Current tariffs and trade barriers are unsustainable, but we don’t want to decouple,” and confirmed plans to meet Chinese officials in Switzerland this weekend for trade talks.

The shift in tone from both sides has lifted markets since the U.S. stock market closed. A spokesperson from China’s Ministry of Commerce acknowledged the U.S.’s recent remarks on potential tariff adjustments and confirmed China would engage in discussions, citing global expectations, domestic interests, and feedback from U.S. businesses. As a result, Bitcoin now trades around $97,200, while Nasdaq 100 and S&P 500 futures are both up approximately 1%. The developing diplomatic thaw is sparking renewed investor confidence in riskier assets.

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TECH
Nvidia CEO Warns on China AI

Nvidia CEO Jensen Huang believes China’s AI market could grow to $50 billion within two to three years and called missing that opportunity a “tremendous loss.” Speaking at ServiceNow’s Knowledge 2025 conference in Las Vegas, Huang emphasized the economic benefits of selling into China—namely, increased U.S. revenue, taxes, and job creation. Despite supporting U.S. policy, he stressed the need for agility amid changing export rules.

Nvidia, a leader in GPUs powering the AI boom, faces mounting pressure after the Trump administration restricted shipments of its H20 chips to China. The company now expects a $5.5 billion quarterly hit. Huang previously noted China is not lagging in AI and called Huawei a formidable player. Nvidia shares have dropped 15% this year after tripling in 2023. With earnings due May 28, analysts project 65% revenue growth to $43.1 billion—down from last year’s 260% surge. “The world is hungry for AI,” Huang said. “Let American AI lead.”

FINANCE
Paul Tudor Jones Predicts Market Crash

Paul Tudor Jones, the legendary hedge fund manager known for predicting the 1987 crash, believes markets are heading for new lows. Speaking on CNBC, Jones warned that Donald Trump’s tariff policy—especially toward China—is set to drag down stocks, even if tariffs are reduced from the current 145% to 50%. “Even with a cut, it’s still a massive tax increase,” he said, estimating a 2–3% hit to economic growth.

Jones sees little near-term relief from the Federal Reserve, which remains firm on not cutting interest rates. While he expects Trump may eventually ease tariffs and the Fed may lower rates, he doesn’t think either will act soon enough to prevent the market drop. “When we hit new lows, then the pressure will force action,” he said. Only aggressive rate cuts, which he doubts are imminent, could prevent the downturn. Until then, Jones believes Wall Street should brace for more pain.

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.