U.S. Financial Data Sparks Crypto Rally—Wall Street Left Scratching Its Head

Fresh U.S. economic reports just handed crypto bulls a loaded gun—and they’re firing at all-time highs.

Institutional FOMO meets Main Street skepticism

While traditional investors obsess over inflation metrics, Bitcoin and Ethereum are quietly eating their lunch. The latest Treasury yield dip? A buy signal for degens. GDP growth slowing? Just more proof the old system’s crumbling.

The cynical take

Of course the suits will claim they saw this coming—right after they finish rebalancing their 60/40 portfolios into the toilet.

Strong U.S. Earnings Reports

Amazon’s latest earnings report exceeded expectations, with net sales and earnings per share showing promising figures. The first-quarter earnings of $155.7 billion surpassed predictions. Moreover, the upward revision of second-quarter revenue expectations, ranging between $159 billion and $164 billion, supports both the stock market outlook and consumer expectations.

Positive earnings reports from Microsoft and Meta are also boosting the cryptocurrency sector. Despite the American Chamber of Commerce’s warning about comprehensive tariffs harming numerous small businesses, the impressive data from trillion-dollar giants supports investor confidence.

According to Yahoo Finance, Nvidia’s stock price ROSE by 2.6%, reaching $112. In addition to the outstanding earnings reports from major companies, the U.S. is also expected to sign its first trade agreement soon.

Tariffs and the Federal Reserve

Unemployment, non-farm employment, and average earnings data will influence the Federal Reserve’s upcoming statements. While some data suggest potential recession, consumer expectation figures could be inflating due to imposed tariffs.

With the U.S. about to sign its initial tariff agreement and inflation continuing its downward trend, it seems unlikely that the Federal Reserve will disregard the risk of economic slowdown in its statements on Wednesday.

Trump persistently calls for rate cuts to stabilize economic fluctuations. With disappointing JOLTS data and potential contraction signals in forthcoming employment figures, the Fed may need to shift focus from inflation to employment.

The Federal Reserve has two main objectives: maintaining strong employment and weak inflation. Recent PCE data was just 0.3 points short of the 2% target. Despite possible tariff-induced inflationary pressures, the Fed needs to prioritize employment over controlling inflation.

To maintain its independent image and align with previous announcements, even if a rate cut doesn’t occur in May, we anticipate Powell’s statement on Wednesday to include clear signals of potential easing, potentially setting the stage for June. This could sustain the upward momentum in the cryptocurrency market.