A Debt Ceiling Deal to Calm Markets?

Plus the Crypto-AI exodus continues and China sends mixed messages

Author

Nathaniel Whittemore
May 26, 2023

The Breakdown First Five - Friday May 25, 2023

5. Nvidia Soars

Chipmaker Nvidia recorded one of the largest single day moves in stock market history, adding more than 25% on Thursday and coming tantalizingly close to the Trillion dollar market-cap club. The move was fuelled by bullish earnings which blew Wall St forecasts out of the water. Earnings beat by 18% on the back of massive data center demand. Is AI enough to ward off debt ceiling jitters?

4. Zerochain

Fantom-centric cross chain bridge Multichain is undergoing “force majeure”, with multiple pathways down and funds backing up. Rumors are spreading of arrests of the team in mainland China as Binance closes deposits for Multichain assets. CEO has only cryptically said he is "not available yet." Multichain assets represent 78% of the market cap of tokens on Fantom.

2. China TV pulls Crypto segment

Days after running a short segment on Hong Kong’s Crypto regulations, Chinese state TV has wiped the clip from the local internet. When the segment ran, CZ called it a big deal even though it was extremely brief. Western traders are hyped for the Hong Kong reopening, but with zero exchanges registered so far the new regulations could be a flop.

2. Paradigm Pivots?

Crypto VC firm Paradigm is now a “research-driven technology investment firm" according to its website, which has been scrubbed of any mention of Crypto of Web 3. Insiders say the firm will continue with Crypto investments, but want to draw attention to its wider range of skills. The firm may have simply run out of promising Web 3 startups to invest in. Co-Founder Matt Huang is still excited about Crypto though.

1. Debt Ceiling Deal?

Multiple reports say a debt ceiling deal is on the horizon. Negotiations are reportedly moving in the right direction, with Republicans rumored to be settling for a 2 year spending cap and $10B less in IRS funding. Military budgets will remain intact as the GOP abandons calls to ramp up Pentagon spending. X-day is next Thursday and cash is confirmed to be running low.

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Thanks for reading -NLW