AI Optimism and Iran Deal Boost Crypto Market
Bitcoin moved closer to $78,000 on Thursday (May 21), driven by optimism from Nvidia's strong earnings report and easing geopolitical concerns in the Middle East, boosting sentiment toward riskier assets. At 2:39 a.m. ET (6:39 a.m. GMT), Bitcoin was last trading at $77,651, having briefly reached $78,165 in the previous 24 hours.
This gain marked a recovery from earlier losses this week due to rising U.S. bond yields and geopolitical uncertainty. Investor sentiment improved after U.S. President Donald Trump stated that negotiations with Iran were in their final stages, raising hopes for a deal that could ease tensions in the Strait of Hormuz and energy supply concerns. Trump also warned of the possibility of additional military action if a peace deal fails, while Iran stated it was reviewing the U.S.'s latest position on resolving the conflict.
On the corporate front, Nvidia reported higher-than-expected quarterly revenue of $81.6 billion and projected second-quarter revenue of around $91 billion, fueling optimism for AI-related assets and the technology sector globally. The rise in semiconductor stocks in Asia also supported the rally in equity and crypto markets.
However, Bitcoin's gains were relatively limited as investors remained cautious about high bond yields and uncertainty about the Federal Reserve's policy direction. The minutes of the Fed's April meeting showed persistent concerns about inflation, keeping the possibility of future interest rate hikes low.
Most altcoins were relatively stable; Ethereum rose 0.2% to $2,128.92, XRP was flat at $1.37, Solana rose 1.6%, while Cardano and Polygon each rose 0.5%. Meme token Dogecoin rose 1.4%.
Variables to monitor: Iran negotiations, next quarter's tech results, US bond yield movements, and the Fed's decision. (arl)
Source: Newsmaker.id
