😲 Bitcoin smashes $111K – What just happened?
- NexxtGen Markets
- 1 day ago
- 4 min read
Good morning, here's the latest Global Financial Markets update from Steve Halls at NexxtGen Markets here in the City of London...
🚀 Bitcoin hits all-time high above $111,000
The Bitcoin surge has stunned markets once again. On Wednesday, the world’s largest cryptocurrency surged to a record high of $111,398, up 2% on the day and now more than 130% higher year-on-year. The rally has been driven by three core catalysts:
This is more than speculation—corporations now hold roughly 3.4% of all mined Bitcoin, and institutional interest continues to grow. Analysts see room for Bitcoin to test $160,000 by Q4, with upside potential towards $200,000 should ETF flows and regulatory clarity continue improving.
📈 Bitcoin is diverging from traditional assets
Interestingly, Bitcoin is no longer trading like a traditional risk asset. While equities wobble, Bitcoin has decoupled, increasingly behaving like a long-term store of value. This reflects its fixed supply dynamics, increasing institutional inflows, and a broader shift in perception. It's a compelling narrative for investors looking to diversify away from traditional fiat-based exposure.
🏥 UnitedHealth slides on bonus scandal
Shares in UnitedHealth tumbled 5% following allegations that the insurer paid secret bonuses to nursing homes in an effort to reduce hospital transfers. This comes just days after news of a Department of Justice investigation into potential Medicare fraud and the resignation of CEO Andrew Witty.
The stock is now down 33% since mid-April and has hit a five-year low. HSBC has downgraded the stock, citing declining earnings visibility and reputational risk.
🌍 European equities flat, eyes on PMIs
The Stoxx 600 closed flat on Wednesday, maintaining two-month highs but lacking fresh catalysts. UK inflation rose unexpectedly to 3.5%, which could delay expected interest rate cuts. Traders are now eyeing upcoming PMI data across the Eurozone, UK and US, and any G7 statements that could influence policy expectations.
Infineon gained 1.6% after announcing a major partnership with Nvidia, further reinforcing confidence in the semiconductor cycle.
🧵 Ralph Lauren enters earnings with momentum
Expectations are high for Ralph Lauren, which reports before the bell. Analysts forecast Q4 EPS of $2.04 on revenue of $1.65 billion. Impressively, the company has beaten revenue expectations for eight consecutive quarters, and EPS estimates have been revised upward nine times over the past three months.
🧠 Workday: AI and federal deals in focus
Workday will report Q1 earnings after the close today. EPS is expected at $2.01, revenue at $2.22 billion. Analysts are bullish due to the firm’s growing traction in federal contracts and accelerating AI integrations. The company serves over 11,000 clients and continues to outpace peers in the SaaS sector.
🛠️ Advance Auto Parts to post weak numbers
Advance Auto Parts is set to report a challenging Q1, with EPS expected at -$0.69 and revenue down 26% year-on-year. With 17 downward revisions in the past 90 days, sentiment is poor. The stock has only beaten EPS expectations 25% of the time historically.
🔍 Movers and shakers
Here’s a snapshot of some key market moves:
🔼 Bitcoin (BTC) +2% to $109,711
🔽 JD Sports (JD.L) -10% to £83.45
🔼 Carr’s Group (CARR.L) +8% to £152
🔽 Urban Outfitters (URBN) -2.84% to $59.60 (despite strong earnings beat)
🔽 Target (TGT) -5.21% to $93.01 (cut guidance and missed on revenue)
🔽 Snowflake (SNOW) -2.06% to $179 (AI momentum intact, but volatility remains)
🔽 Zoom (ZM) -1.00% to $82.27 (raised guidance, enterprise growth strong)
🔮 What to watch today
🇩🇪 Germany IFO Business Climate (May): Expected at 86.4
🇬🇧 UK Flash PMI (May): Manufacturing expected at 46, Services at 49.3
🇺🇸 US Jobless Claims: Expected at 231K
🇺🇸 US Flash PMI (May): Manufacturing at 50.3, Services at 50.6
🇺🇸 US Existing Home Sales: Forecast -3%
🔎 Spotlight: Apple, housing, cattle & theme parks
Apple: Shares dropped 2.3% after OpenAI agreed to acquire Jony Ive’s AI startup for $6.4B. Fears are mounting that Apple’s smart device leadership may be challenged.
Housing stocks: Toll Brothers, PulteGroup, and Taylor Morrison are rising, but D.R. Horton and Hovnanian remain under pressure from 7%+ mortgage rates.
Live cattle: Futures are up 11% YTD. Tyson Foods is down 7%, while JBS has soared 36%.
Comcast & theme parks: Universal’s Epic Universe opens this week. Watch Disney and Six Flags for trends in post-COVID travel demand.
Home Depot: Annual shareholder meeting today. Stock is up 7% in the last month, but still down 15% from its peak. Key focus: inflation and DIY demand.
Palo Alto Networks (PANW): Beat expectations with Q3 revenue of $2.29B. Shares fell 4% post-earnings despite strong fundamentals.
Lumen Technologies: Soared 11% on news that AT&T will acquire its Mass Markets business for $5.75B.
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