Cryptocurrencies are proving to be a beacon of investor confidence amid global market uncertainty, with Bitcoin holding steady near an all-time high of $111,207 and Ethereum climbing 1.8% to $2,790.9 on Thursday.
While global stocks advanced — buoyed by strong earnings from chipmakers like TSMC and continued optimism around artificial intelligence — crypto markets mirrored this bullish sentiment, showing strength even as geopolitical tensions rose.
Trump’s new tariffs
Investor attention was also fixed on renewed trade threats from U.S. President Donald Trump, who unveiled sweeping new tariffs including a 50% duty on copper imports effective August 1, and similar threats against Brazil and other trading partners. Despite this, market reaction was relatively muted, suggesting growing investor resilience or confidence that these measures may yet be negotiated or reversed.
The crypto market, however, has increasingly decoupled from traditional equity fears. Bitcoin’s persistent strength reflects growing conviction in digital assets as a hedge against monetary policy shifts and geopolitical risk. Analysts note that the current momentum is further supported by dovish signals from the Federal Reserve.
Minutes from the Fed’s latest meeting indicate that most members expect at least two interest rate cuts before year-end, a scenario that typically benefits risk assets, including crypto. Investors are betting the Fed will prioritize job market softness over inflation fears, with a possible rate cut as early as September.
AI boom
Meanwhile, the AI boom continued to fuel tech stocks globally. TSMC’s upbeat earnings, driven by demand for AI chips, followed Nvidia’s historic $4 trillion market cap milestone earlier in the week. This tech rally has bolstered investor risk appetite—including for crypto assets.
As the dollar softened against major currencies like the euro and sterling, crypto held its ground, with digital assets increasingly seen as a safe-haven alternative—especially amid rising global currency and trade volatility.
With momentum from AI, dovish central banks, and shifting investor sentiment, the digital asset market appears to be entering a new phase of resilience and maturity—weathering the storm while traditional markets tread cautiously.
