Bitcoin’s value rose above $97,000 following encouraging quarterly earnings from Microsoft and Meta. These results contributed to a broader stock market rally, despite warnings about the negative impact of tariffs on small businesses. Analysts believe that Bitcoin’s rise benefits from both ongoing economic challenges and potential Federal Reserve interest rate cuts if a slowdown continues.
Bitcoin’s price surged past $97,000 on Thursday, riding a wave of optimism from Wall Street, where stocks rallied following solid earnings reports from tech giants Microsoft and Meta. This shift in investor sentiment comes despite a stark warning about the potential fallout from tariffs imposed by former President Donald Trump’s administration, particularly on small businesses. Currently, Bitcoin hovered around $96,600, marking a 2.7% increase in just 24 hours, while altcoins outperformed, with Ethereum and Dogecoin seeing gains of 3.5% and 5%, respectively.
Both Microsoft and Meta surpassed analysts’ earnings expectations in their latest quarterly reports. This has raised hopes that the ongoing trade war isn’t taking a toll on the so-called “Magnificent Seven” group of tech stocks or the broader AI sector, which once vaulted chipmaker Nvidia to the title of the world’s most valuable company last year. Nvidia’s stock itself also saw a bump, up by 2.6% to reach $112, following news that the U.S. might consider easing restrictions on chip sales to the UAE as Trump plans an upcoming visit this month.
Steven Lubka, who is in charge of private clients at Swan Bitcoin, suggests that the current market climate is inclined towards risk-taking. Despite Bitcoin’s recent rally being spurred by concerns over tariffs and turmoil, it may also draw support from a potential downturn in the economy, which could negatively impact gold—a precious metal itself predicted to drop by 2.5% on Thursday according to Yahoo Finance.
Lubka pointed out a recurring theme in Wall Street discourse: the belief that regardless of the economic scenario, Bitcoin stands to gain either from an economic slump or a resolution to the tariff issues. He notes, “Heads we win, tails we win.” Recent reports indicate the U.S. economy contracted at an annualised rate of 0.3% in the year’s first quarter, adding fuel to recession fears. Analysts suggest this could push the Federal Reserve to lower interest rates, benefitting Bitcoin further.
On the other hand, the U.S. Chamber of Commerce issued a warning regarding the dire state of small businesses affected by Trump’s tariffs, calling for urgent relief. Chamber President and CEO Suzanne P. Clark stated in a letter, “Each day that passes places small businesses in greater jeopardy due to rising costs and disrupted supply chains.”
Lubka believes that while initial reactions to Trump’s tariffs wreaked havoc on the market, it looks like investors are starting to see beyond the immediate chaos. He added, “The market is realising that this is just not where we’re going to end up.” In essence, there seems to be a growing belief among investors that the tariff situation will not be the long-term narrative for the market.
