Source: Fortune.com
Summary
Bitcoin’s price rose briefly above $70,000 after Nvidia’s strong earnings release, but then fell to around $66,000. Nvidia’s stock also plummeted 5% on Thursday, dragging down the S&P 500. Experts say Bitcoin is not acting like a risk-off asset, and its price is highly sensitive to market fluctuations. The cryptocurrency has been experiencing a brutal stretch since October, with a 25% drop in the last month. Other cryptocurrencies, such as Ethereum and Solana, have also seen significant declines.
Our Reading
The numbers tell one story. Nvidia’s earnings release caused a brief spike in Bitcoin’s price, but the tech company’s stock plummeted the next day. Bitcoin’s price is mirroring the broader market, rather than acting as a risk-off asset. Experts predict continued whiplash in Bitcoin’s price. The signal going forward: Bitcoin is in a volatility regime. “Risk appetite remains the dominant headwind across asset classes,” said Matt Howells-Barby, VP at Kraken. “Any additional negative catalysts could weigh further on risk assets, including crypto.”
Author: Evan Null
