"Risk appetite remains the dominant headwind across asset classes. The relatively muted response in equities following Nvidia's earnings reinforced that cautious tone, and any additional negative catalysts could weigh further on risk assets, including crypto."
"The price of Bitcoin tracking the traditional stock market is the latest sign that the original cryptocurrency is not acting like a risk-off asset. When indices like the S&P 500 have gone down recently, Bitcoin has sunk even further. For example, in the last month, the S&P 500 is down 1% and the original cryptocurrency is down 25%."
Bitcoin and major stock indices experienced sharp reversals following Nvidia's better-than-expected earnings report. While the chip company's strong results initially lifted Bitcoin above $70,000 and Nvidia's stock by 1%, sentiment quickly reversed on Thursday morning. Bitcoin dropped to $66,000 while Nvidia plummeted 5%, dragging the S&P 500 lower. Investors remain cautious about potential AI infrastructure bubbles despite positive earnings. Bitcoin's recent performance increasingly mirrors traditional equities rather than acting as a risk-off asset, declining 25% in the past month compared to the S&P 500's 1% drop. This pullback extends a difficult period for cryptocurrencies since October's all-time high of $126,000, with Ethereum down 33% and Solana down 40% over three months.
#bitcoin-volatility #nvidia-earnings #cryptocurrency-market-correlation #ai-infrastructure-bubble #risk-sentiment
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