Nvidia, the world leader in AI computing, is expected to have a poor earnings report later today. With this news weighing heavily on traditional stock markets, will this also lead to a crash in the bitcoin price?
A local top for bitcoin?
Bitcoin is currently down around 3% from the yearly high of $53,000 that it made only yesterday. Could this have been the local top for bitcoin? Or is the impending expected bad earnings report for Nvidia (NVDA) going to be a nothing burger for crypto?
A nothing burger it most certainly will not be. Bitcoin and crypto are still correlated to the traditional stock markets, and a crash here is definitely going to lead to repercussions in the crypto market.
Nvidia earnings
It’s still not known how bad the Nvidia earnings report is going to be, or even if it will be particularly bad, but Nvidia has been one of the major factors driving the US stock market over recent years, and will be anticipated with some dread.
Nvidia has performed spectacularly
Source: Coingecko/Trading View
The $NVDA chart is nothing short of spectacular. The stock has gone up thousands of percent to reach the nearly $700 it is before opening today. A pull-back that could even get back to the support of $500 is certainly on the table.
BTC/NVDA in bitcoin’s favour
Source: Coingecko/Trading View
Charting $BTC against $NVDA things do not look too bad at all for the king of the cryptocurrencies looking out into the future. A bottom could be in, and there looks to be a huge amount of upside that $BTC can make from here against the highest performing stock.
Nasdaq breaks trend
Source: Coingecko/Trading View
Looking at the Nasdaq top 100 technology stocks, it can be seen that the upward trend could be breaking, and this will surely have something to do with Nvidia.
BTC not immune to pull-back
Bitcoin is also obviously in the technology sector, and in recent years it has been quite closely correlated with the Nasdaq. In fact, technology (AI) and crypto have been the only two sectors that have outperformed over the last year at least, and it might be expected that this will continue into the future.
Yes, there may be a dip in $NVDA, which will probably spill over into the Nasdaq and the stock market as a whole. Also, $BTC is not likely to remain resistant to a big stock market pull-back. That said, this is probably going to be a healthy correction, of which the extent still remains to be seen. For those in for the long run, it will likely just be another bump in the road, and there will probably be more of those to come.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
