5 min readBitcoin has recovered from yesterday’s low of 106.8k, rising towards 109k amid an upbeat market mood amid trade optimism.
News that a Federal Court has blocked Trump’s trade tariffs has boosted risk sentiment across the crypto sector and global markets. The US trade court concluded that Trump overstepped his powers by using emergency laws to justify the Liberation Day trade tariffs.
The White House is appealing this decision, which could mean that uncertainty surrounding trade tariffs drags on. The ultimate decision could be made by the US Supreme Court. Even if the decision is upheld, suspending the vast majority of Trump’s trade tariffs, this will likely only be a temporary setback to Trump’s trade agenda, which he could offset by other taxes. The markets are looking at this as a small deviation along the same path, with the end goal of tariffs coming.
The ongoing uncertainty supports the view that the Fed will continue with its wait-and-see stance towards further rate cuts. The minutes to the FOMC meeting on May 6, which were released yesterday, shed light that policymakers were in no rush to move again on rates, preferring to see the impact of trade tariffs on the economy before moving again.
Sentiment analysis
The Bitcoin Fear & Greed index has held in the low 70s for a third straight week. This level is characterised by a healthy, balanced uptrend. Another way of gauging sentiment is through flows into ETFs, which have also remained strong, booking the 10th straight day of gains.
AI tokens are in focus as Nvidia beats estimates
AI tokens NEAR, FET, and ICP rise after AI chip maker Nvidia posted earnings and revenue beat, despite seeing a hit to Chinese sales.
Nvidia posted an almost 70% rise in revenue to $46.1 billion, ahead of the $43.3 billion forecast. Sales in the company’s data centre division, which includes AI chips, grew 73%. Meanwhile, EPS was $0.96 vs. $0.93.
The solid number came despite an $8 billion hit from US restrictions on chips to China, while strong guidance also helped calm fears over the restrictions’ impact. Nvidia guided for $45 billion in revenue and gross margins of 72%, ahead of the 71.7% expected.
The market capitalisation of artificial intelligence (AI tokens) has risen 15% over the past 30 days, rising to $37.68 billion.
Artificial Superintelligence Alliance (FET) trades at 0.90 on Thursday. It is up 22% in May, following 62% gains in April. However, FET remains below the key 200 SMA, and the bearish divergence on the RSI means it could struggle to build bullish momentum.
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