Bitcoin Soars, Nvidia Hits $4T Amid Tariff News

The Euro steadied near 1.1715 against the US Dollar on Thursday morning in the Asian session, recovering after three consecutive daily declines and adding a mere 0.12% on Wednesday. This modest gain followed the release of the Federal Open Market Committee (FOMC) minutes, which revealed a largely dovish tone from the Federal Reserve, helping to offset renewed global tariff tensions.

The Federal Reserve's June meeting minutes indicated that most policymakers foresee at least one interest rate cut as appropriate later this year. Furthermore, a few officials expressed a willingness to consider a reduction as early as July, provided that incoming economic data supports such a move. This softening stance from the Fed appears to be a key factor in the Euro's recent stability.

However, Washington has intensified its tariff offensive, sending new demand letters with duties ranging from 20% to 50% to several countries, including the Philippines, Moldova, Algeria, Iraq, Libya, Brunei, Sri Lanka, and Brazil. This ongoing trade uncertainty continues to be a significant consideration for market participants.

Bitcoin marked a historic milestone on Wednesday, surging to a new all-time high above $112,000. This achievement is largely attributed to increasing institutional investor participation, with firms aggressively adding Bitcoin to their treasury portfolios and major asset managers launching Bitcoin ETFs.

Companies like MicroStrategy (MSTR) continue to be prominent accumulators of Bitcoin, and new entrants such as GameStop Corp (GME) have also begun board-approved Bitcoin purchases. Further bolstering the institutional embrace, Trump Media (DJT) recently filed with the U.S. Securities and Exchange Commission for approval to launch a new "Crypto Blue Chip ETF" later this year, building on previous ETF filings.

These significant structural tailwinds—including robust ETF inflows, the expansion of corporate Bitcoin treasuries, and supportive U.S. policy—are collectively enhancing Bitcoin's appeal and solidifying its status as a legitimate institutional-grade asset.

On Wednesday, crude oil prices, represented by WTI and Brent, showed moderate gains, indicating some price stabilization. Investors continued to assess the potential impact of escalating U.S. tariffs on global economic growth. However, a weaker dollar and signs of robust U.S. gasoline demand offered some support to prices.

Despite some positive demand indicators like record global daily flights in early July, analysts note that broader macro uncertainty, especially related to the U.S. tariff policies, has led to a more cautious buying environment in Asia. The U.S. administration has recently expanded its tariff threats, including a punitive 50% tariff on Brazilian exports and plans for levies on copper, semiconductors, and pharmaceuticals, sending tariff notices to numerous countries. These measures are raising concerns among policymakers about inflationary pressures, influencing demand for the energy sector.

Supporting oil prices was a weaker U.S. dollar, making oil cheaper for international buyers, and data from the U.S. Energy Information Administration (EIA) showing a rise in U.S. crude stocks but a decline in gasoline and distillate inventories last week, with gasoline demand notably increasing by 6%. On the supply side, while OPEC+ is expected to approve another significant output boost for September, doubts remain about whether actual production will fully meet these targets, as some members already exceed quotas or face infrastructure limitations.

On Wednesday, the US 500 advanced by 0.53% on the iFOREX platform, reflecting a strong session on Wall Street. This rise was significantly propelled by tech sector strength, particularly NVIDIA's landmark achievement.

NVIDIA (NVDA) was a standout performer, briefly becoming the first company in history to surpass a $4 trillion market valuation. The chipmaker saw its shares rise 1.74% on Wednesday and another 0.3% in aftermarket trading, continuing its dramatic rally fueled by sustained investor enthusiasm for artificial intelligence. Gains in NVIDIA and other tech stocks also helped push the US tech 100 that tracks the performance of the NASDAQ Composite to a record high.

Despite the positive market close, concerns over U.S. trade tariffs persisted. President Trump continued his aggressive tariff agenda, imposing a 50% duty on Brazil, which drew a vow of retaliation, and also enacted a 50% levy on copper imports. These tariff developments kept some downward pressure on futures markets.

Wall Street also received a boost from speculation about Federal Reserve interest rate cuts. Minutes from the Fed's June meeting showed a majority of policymakers favoring further rate cuts this year, though the exact timing remains uncertain given the resilient U.S. economy and inflationary concerns related to Trump's tariffs.