Crypto Rebounds as Tariffs Ease

CRYPTO
Crypto Rebounds as Tariffs Ease

Bitcoin rebounded to just under $110,000 on Monday after dipping over the weekend due to President Trump’s unexpected tariff threats on the European Union. The announcement sparked risk-off sentiment across global markets, dragging bitcoin to a low of $108,600 and triggering over $500 million in crypto liquidations. However, a temporary pause in the tension—Trump extended the tariff deadline to July 9—calmed investors. U.S. and European futures rose over 1%, and crypto followed.

Cardano’s ADA and Dogecoin led the recovery, each gaining up to 3% in 24 hours. Analysts say the bounce suggests a return of cautious optimism, supported by renewed interest in bullish bitcoin options and ongoing institutional buying. Singapore’s QCP Capital cited a constructive setup, pointing to continued ETF inflows and progress on U.S. regulation. Despite recent volatility, some traders see this pullback as a buying opportunity rather than the start of a broader downturn.

FINANCE
BYD Shares Fall After Price Cuts

Shares of Chinese EV giant BYD fell 8.25% on Monday, pulling back from last week’s record high after the company slashed prices on 22 electric and hybrid models. The announcement, made via Chinese social media platform Weibo on May 23, offers limited-time discounts through June. Notably, the Seagull hatchback dropped 20% to $7,780, while the Seal hybrid sedan fell 34% to $14,320.

These moves follow earlier price cuts in BYD’s Han sedans and Tang SUVs earlier this year. Citi analysts reported a 30–40% jump in showroom visits between May 24–25 compared to the prior weekend, driven by the aggressive pricing. However, the broader Chinese EV sector also saw selloffs Monday, with Geely down 7.29%, Great Wall off 2.94%, Li Auto dropping 4.93%, and Xpeng sliding 4.19%. Despite investor concerns about intensifying price wars, Citi maintains a bullish view on sub-$28,000 new energy vehicles, citing steady demand and moderate competition.

TECH
Nvidia Earnings Set Market Tone

Wall Street is turning its attention to Nvidia’s upcoming earnings report this week, with the chipmaker poised to impact investor sentiment across global markets. After a sharp run-up over the past two years, Nvidia’s stock—still up over 1,000% since late 2022—is down 2% year-to-date. Analysts expect Q1 earnings to jump 45% to around $43.2 billion in revenue, driven by strong demand for AI chips. As the last of the “Magnificent Seven” to report, Nvidia’s results may help revive enthusiasm for the AI trade.

Meanwhile, rising long-term Treasury yields—spurred by mounting U.S. deficit concerns—are weighing on equities. The 30-year yield topped 5%, while the S&P 500 is now down 1.3% for the year. Market volatility also increased after President Trump proposed steep tariffs on EU goods and Apple products. Despite headwinds, analysts believe Nvidia remains key to the broader tech rally and the AI investment narrative.

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.