Trump Creates U.S. Bitcoin Reserve

CRYPTO
Trump Creates U.S. Bitcoin Reserve

President Trump fulfilled a key crypto industry wish by signing an executive order to establish a strategic Bitcoin reserve and digital asset stockpile. White House AI and crypto czar David Sacks announced the news on X, calling it a step toward making the U.S. the “crypto capital of the world.”

Rather than buying Bitcoin, the government will use seized assets from criminal and civil cases, totaling around 200,000 BTC ($17.4 billion). Sacks described the reserve as a “digital Fort Knox.” A separate stockpile will hold other confiscated cryptocurrencies, but Sacks did not disclose which ones or how much.

Bitcoin briefly dropped 5% below $85,000 before recovering to $88,000. Trump, who pledged this initiative at Bitcoin 2024, won strong support from crypto executives like Jesse Powell and the Winklevoss twins. Sacks confirmed that the government can pursue budget-neutral strategies to expand its Bitcoin holdings. “PROMISES MADE, PROMISES KEPT,” he wrote.

FINANCE
Broadcom Eyes AI-Driven Comeback

Broadcom’s last earnings report briefly made it a $1 trillion company, and its latest results could help it reclaim that title. The company benefits from surging AI investment, helping firms like Google design AI chips. However, concerns about the sustainability of AI spending, China’s DeepSeek, and potential chip sale restrictions have pressured its stock.

Broadcom also faces challenges in weaker markets like industrial components and Apple’s radio-frequency chips. These worries, along with a market downturn, caused a 22% drop in its stock over the past month, far exceeding the S&P 500’s 6% decline.

The company’s Q1 results showed AI revenue reaching $4.1 billion, a 78% increase, exceeding expectations. It also projected $4.4 billion in AI revenue for the current quarter, surpassing forecasts. Broadcom is expanding its AI business, adding four more hyperscaler customers. After-hours trading saw shares jump 12%, signaling renewed investor confidence in its AI-driven growth.

TECH
Wall Street Braces for Jobs Data

Wall Street endured another volatile session as stocks swung sharply amid tariff concerns. The S&P 500 fell 1.8%, while the Nasdaq 100 dropped 2.8%, nearing a technical correction. Despite President Trump delaying tariffs on Mexican and Canadian goods, equities struggled to recover. The dollar extended its losing streak, while the peso and loonie gained.

Tech stocks led the decline, with Nvidia dragging megacaps lower. However, Broadcom reassured investors with an upbeat AI revenue forecast. Meanwhile, Hewlett Packard Enterprise issued weak guidance and announced job cuts.

Markets await Friday’s payroll report, with economists projecting 160,000 new jobs and unemployment holding at 4%. Treasury yields edged higher, and the S&P 500 hovered near its 200-day moving average.

Low-volatility stocks outperformed, emerging as a top investment theme for 2025. As uncertainty persists, traders are closely watching payroll data, with 84% of surveyed investors viewing it as a key market driver.

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.