Author: Luke, Mars Finance
Prelude: The Eve of the Tech Earnings Storm
On April 21, 2025, the U.S. tech stock earnings season thundered like a war drum, with global markets holding their breath and crypto traders on high alert. This week, over 120 S&P 500 companies will densely release their Q1 2025 financial reports (January to March), with the "Tech Seven" (Magnificent 7, Mag7) leading the charge - Tesla (April 22), Alphabet (April 24), and Intel (April 24), followed by Microsoft, Meta, and Broadcom (April 30), and Apple and Amazon (May 1), with NVIDIA expected to close the show on May 28. This earnings feast is not only the focus of Wall Street but also like a stone thrown into the crypto market's lake, creating rippling waves.
For crypto traders, tech stock earnings are far from distant financial jargon, but a direct trigger for Bitcoin (BTC) and Ethereum (ETH) prices. U.S. tech stock movements sway the Nasdaq and S&P 500 indices, with crypto assets often dancing in sync.
- In Q2 2020, strong earnings from Apple and Microsoft pushed the Nasdaq up 6.8%, with Bitcoin breaking through $10,000;
- In Q1 2022, Meta's weak performance dragged the Nasdaq down 4.2%, causing Bitcoin to drop 15%.
The upcoming semiconductor tariff policy from the Trump administration adds uncertainty to the market, with details expected to be announced by May 7, potentially raising chip costs and impacting Bitcoin mining hardware and blockchain infrastructure.
Meanwhile, the U.S. dollar index dropped below 98 to a three-year low, gold soared to $3,400, and Trump threatened to fire Federal Reserve Chair Powell, with the market sensing rate cut signals - CME data shows over 75% probability of a June rate cut. In this wave of safe-haven assets, Bitcoin broke through $87,000, igniting traders' enthusiasm. This week's tech stock earnings will serve as a weathervane for the crypto market, and traders must keep their eyes sharp.
Why Do Tech Stock Earnings Affect the Crypto Market?
[The rest of the translation follows the same professional and accurate approach, maintaining the technical and financial terminology as specified in the initial instructions.]- Hardware Costs: 2 nm chip costs rise by 10-20%, pushing up mining and blockchain device prices.
- Supply Chain Adjustment: Companies may relocate production to the United States, which could be short-term positive for blockchain infrastructure stocks (such as Hut 8).
- Market Volatility: Unclear tariff guidelines may exacerbate cryptocurrency asset sell-offs, testing traders' risk management.
Intel's financial report this week will provide an early signal of tariff impacts, and NVIDIA's report on May 28 will further reveal strategies for AI chips and blockchain hardware. JPMorgan analyst Mark Murphy warns: "Tariff uncertainty may lead tech giants to provide conservative guidance, and the crypto market needs to prepare for turbulence."
Macroeconomic Background of Earnings Season
1. DeepSeek and a Cool-Headed Look at the AI Craze
DeepSeek's low-cost AI breakthrough disrupted computing power expectations, causing NVIDIA's market value to evaporate by nearly $600 billion on January 27, with Microsoft, Alphabet, and Meta collectively losing over $400 billion, while BTC and ETH dropped over 5% in a single day. Meta CEO Zuckerberg stated he is studying the integration of DeepSeek technology but needs more computing power. For crypto traders, the AI craze is closely related to blockchain: decentralized computing power platforms (such as Render Network) may benefit from AI investment shifts. Cathie Wood predicts: "Blockchain will play a key role in AI infrastructure." The financial reports will test how giants balance AI investment and cost optimization, with NVIDIA's guidance directly affecting blockchain computing power stocks.
2. Mag7's Valuation and Market Pressure
In 2025, Mag7's profit growth is expected to slow to 18%, down from 34% in 2024. Microsoft and Meta dropped over 10%, while Apple, Amazon, and NVIDIA fell over 20%, and Tesla plummeted over 40%. The InvestingPro model shows that Tesla and Apple stock prices are above fair value. Wedbush anticipates that tariff uncertainty will make executives reluctant to provide clear guidance, potentially exacerbating cryptocurrency market sell-offs. If the financial reports do not meet expectations, BTC may drop below $80,000, testing key support levels.
Conclusion
The U.S. tech stock earnings season is like a storm sweeping through Wall Street and shaking the crypto market. Tesla, Alphabet, and Intel's performance will set the tone for Mag7's fate, and Trump's semiconductor tariffs may reshape chip costs and blockchain hardware prices. Historically, tech stock financial reports have often ignited or dampened crypto market enthusiasm: the 2020 rally and the 2022 market downturn both remind traders that financial reports are an unavoidable pulse.
The crypto market stands at a crossroads of turbulence. AI investment returns, semiconductor supply chain resilience, rate cut expectations, and recession risk undertows will all emerge in the financial reports. Wedbush's Dan Ives optimistically predicts: "The AI party has just begun." But Citi's Scott Chronert warns: "Financial reports will reveal the truth about risks." Traders need to closely watch this week's financial reports, review their positions, and capture opportunities in the undercurrents of volatility.
