The current state of the US dollar is not among the best, as the US-China war extends amid tariff discussions. Meanwhile, this economic turmoil is high, and the BTC price is bouncing, building an image as a safe haven. However, Bitcoin’s early major crash could not be ignored, as the digital asset struggled under tariff turmoil before recovering recently.
US Dollar Index Declines at 3-Year Low, While BTC Price Regains $80K Support
The US Dollar Index (DXY) has declined below the 100 mark for the first time in the last three years, showcasing the economic uncertainty in the country. At present, it is at 99.45 and even touched 99.01 briefly before recovering. With that, it marked the lowest day since 2022.
Since Donald Trump has joined the White House for the second time, the US currency index has declined by more than 7% and more than 2% in the last week alone, and Trump’s trade war is the catalyst.
Meanwhile, the 10-year US Treasury yield has surged, which is concerning. Typically, the DXY and yield move in the same direction. However, they are opposite now, signaling investors’ carrying diverted sentiments on the dollar.
Interestingly, the BTC price gained upward momentum at the same time, jumping from a low of $74.5k to $82.5k today. Experts believe that investors are marching toward digital assets as traditional finances face uncertainty and significant risks.
Bitcoin vs US Dollar: Is this BTC’s Time to Shine?
Although Bitcoin is gaining significant momentum, the investors are divided between this digital asset and the yellow metal, Gold. The investors’ focus on this hard asset has pushed Gold towards new ATH, while the BTC price still faces uncertainty and high volatility.
Experts believe Asian investors are dumping US assets like stocks and bonds and relocating to gold. This also puts downward pressure on the currency. The experts are divided on their Bitcoin price prediction; some anticipate a surge to $96k as the investors, especially larger whales, are focusing on the digital asset, while others anticipate a further downtrend.
China’s decision to implement a counter 125% tariff on the US intensifies the trade war. The future of BTC vs the Dollar and other assets remains uncertain.
The US Securities and Exchange Commission (SEC) has charged Ramil Palafox, a dual US-Philippine national, with orchestrating a $198 million crypto scam.
From January 2020 to October 2021, Palafox ran a Ponzi-style scheme through his company, PGI Global, defrauding many investors.
SEC Cracks Down on Massive Crypto Scam
According to the press release, the regulator claims that Palafox raised about $198 million from investors globally. He promised them substantial returns from crypto and foreign exchange trading.
“As alleged in our complaint, Palafox attracted investors with the allure of guaranteed profits from sophisticated crypto asset and foreign exchange trading, but instead of trading, Palafox bought himself and his family cars, watches, and homes using millions of dollars of investor funds,” Associate Director of the SEC’s Philadelphia Regional Office Scott Thompson stated.
Furthermore, the company operated with a multi-level marketing (MLM) structure. Palafox attracted investors by claiming expertise in the crypto sector and offering an artificial intelligence (AI)-driven trading platform. Yet, both of these claims provedto be fraudulent.
The scheme eventually collapsed in 2021, resulting in significant financial losses for investors.
“The SEC’s complaint, filed in the US District Court for the Eastern District of Virginia, charges Palafox with violating the anti-fraud and registration provisions of the federal securities laws,” the press release detailed.
The SEC demands that Palafox return ill-gotten gains and pay civil penalties. The regulator has also asked for a permanent injunction to prevent Palafox from engaging in similar activities in the future. Additionally, the US Attorney’s Office has filed criminal charges.
Iranian National Charged for Running Dark Web Marketplace
Meanwhile, in a separate case, a federal jury indicted Iranian national Behrouz Parsarad for founding and operating a dark web marketplace. According to the US Office of Public Affairs, the Nemesis market facilitated the illegal sale of drugs, including fentanyl and other controlled substances. The marketplace was also involved in criminal activities like stealing financial data and distributing malware.
The layer 1 blockchain Sui has garnered substantial investor optimism recently as it led the broader market gains with a price rally of nearly 70% in a week. On-chain metrics have indicated that the crypto’s price rally came against the backdrop of robust stats regarding the TVL, DEX Volume, and stablecoin growth on the network. Mentioned below are some of these key factors that appear to be driving the current price rally.
Sui Token Price Rallies Over 70% Weekly; A Brief Breakdown
SUI coin’s price is trading at $3.55 as of press time, marking gains worth over 17% intraday. Besides, the weekly price chart for the crypto showcased gains worth 69%. This bullish trajectory comes riding the back of a stockpile of optimistic market statistics.
Lookonchain’s data suggested that the crypto’s TVL, DEX volume, and stablecoin growth primarily contributed to the recent price upswing. Particularly, the network’s TVL increased by 38% over the week while surging nearly 7% in a day to reach $1.641 billion.
On the other hand, the 24-hour DEX volume saw a staggering 177% increase from last week, now resting at the $599 million mark. Meanwhile, stablecoins on Sui also witnessed robust growth over the past two months, zooming past from $482 million to $879 million and marking an 82% increase.
Bottom line? Recent on-chain stats indicated that the DeFi ecosystem is heating up, and market participants are gushing into the network. This chronicle potentially brings more users and locked assets to the ecosystem, thereby raising trading activity and liquidity while also ushering in growth.
It’s also worth keeping in consideration that the phenomenal stablecoin growth within the network further highlighted increased capital inflows. As a result, SUI token’s price rallied nearly 70% over the week, undermining major cryptos in the interim and leveraging market support.
Meanwhile, Bitcoin (BTC) price surged nearly 10% in the past seven days, closing in at $93K. Other major league altcoins like ETH, XRP, and SOL also gained 6%-14% over the week, with their gains comparatively lesser than L1 crypto mentioned above.
Besides, Coinglass data has further underlined burgeoning market interest in the L1 coin. SUI price rose alongside a 24% surge in its futures OI to $1.51 billion. Moreover, the crypto’s derivatives market volume saw a 37% increase to $10.90 billion.
In turn, market watchers are now eagerly eyeing the crypto, anticipating a sustained price rally amid bullish market dynamics. A recent report by CoinGape added that SUI token could rally to $10, citing bullish price chart formations.
Speculation about Nvidia adding Bitcoin to its treasury reserves has surfaced recently. These unconfirmed reports lead to questions about the potential for increased institutional adoption of Bitcoin and the possible performance of such a move for Nvidia, whose stock value has fallen considerably this year.
BeInCrypto interviewed representatives from Banxe, FINEQIA, CoinShares, Bitunix, and Acre BTC to discuss Bitcoin’s potential benefits for Nvidia and explore whether such an investment would ultimately benefit the company in the long run.
Rumors of Nvidia’s Potential Bitcoin Investment
Over the past few weeks, several reports have surfaced across social media suggesting that Nvidia, a pioneer in GPU-accelerated computing, is considering adding Bitcoin to its balance sheet.
These reports remain purely speculative at the time of press, given that Nvidia has not made any official statements on the topic. When BeInCrypto reached out for clarification, an Nvidia spokesperson declined to comment.
Even as rumors, these reports highlight the significant impact of such a decision on Bitcoin’s public perception. Given Nvidia’s current economic circumstances, marked by a substantial drop in stock value, an announcement of this nature would not be completely unexpected.
As such, Nvidia’s stock price has taken a hit. According to recent reports, Nvidia stock has fallen 35% since its latest price peak in January.
Nvidia’s stock reacted especially poorly to the news that China’s Huawei Technologies is testing a new AI chip potentially more powerful than Nvidia’s H100.
Given these circumstances, Nvidia can mitigate current economic challenges by diversifying its treasury assets.
Should Nvidia Consider Adding Bitcoin to Its Balance Sheet?
Such a move would significantly alter how other institutional investors view Bitcoin, potentially encouraging more companies to adopt a similar strategy. The crypto community would likely celebrate the news, believing it would solidify Bitcoin’s legitimacy as an asset class.
However, the extent to which Nvidia requires Bitcoin for stability remains controversial.
Risks of Adding Bitcoin to Nvidia’s Treasury
As it is, Nvidia already has other strategies that help the company hedge against volatility and inflation. Adding Bitcoin into the mix may seem excessive.
This becomes especially true when considering just how volatile Bitcoin itself can be. Though the asset can generate significant gains during bullish periods, the losses it can cause are equally severe.
As such, Bitcoin might not be the natural choice to defend Nvidia from its current stock declines. An investment of this kind would need to reflect a long-term strategy rather than an impulse decision.
Would BTC Even Make a Difference on Nvidia’s Share Price?
Bitcoin has demonstrated high returns over the long term, though with considerable volatility. For companies able to withstand the associated risks, including large price fluctuations, it offers the potential for significant future profits.
With its substantial financial resources, Nvidia could absorb Bitcoin’s volatility without a major impact on its balance sheet. In this sense, the company has little to lose, but also little to gain.
Ultimately, Nvidia’s decision to invest in Bitcoin hinges on timing and urgency, particularly given recent developments that have alleviated some pressures on the company.
Easing Export Restrictions: A Boost for Nvidia
Last week, the Trump administration announced its plans to roll back certain Biden-era export restrictions on advanced semiconductor chips.
Biden’s ‘AI Diffusion Rule’ established these restrictions to enhance US technological leadership by preventing advanced chips from being diverted to countries of concern, especially China. Given that China was Nvidia’s main buyer, the rule significantly hampered its sales.
A rollback would be highly advantageous for Nvidia’s sales, especially amid this new wave of chipmakers.
Similarly, the recent US-China tariff pause led to Nvidia’s stock price rise. Despite its temporary nature, the news is a positive sign for the company, promising reduced uncertainty and potential gains in sales and supply chain stability.
Considering these developments, adding Bitcoin to Nvidia’s balance sheet may no longer be urgent. If Nvidia were to make such a decision out of haste, it might also drive away traditional investors and long-time buyers.
Many areas of traditional finance remain highly skeptical of Bitcoin due to its short history and highly volatile nature. If Nvidia adds Bitcoin as a treasury asset, traditional investors might view it as a poor decision, potentially alienating long-time clients.
