Bitcoin Stays Steady at $92K Amid Strong Nvidia Earnings

Bitcoin

Bitcoin maintained a price close to $92,000 during Asian trading on Thursday. This stability comes after a challenging period for the cryptocurrency. The rise in tech stocks, fueled by strong earnings from Nvidia, helped ease concerns around the potential for an AI bubble in the market.

As some buyers returned to take advantage of lower prices, Bitcoin traded within a narrow range. However, trading volume in the crypto space remained cautious, with traders still mindful of broader economic risks and awaiting the next set of economic data from the United States.

The U.S. dollar saw a slight increase ahead of a long-awaited jobs report, which kept investors cautious despite a recovery in stock prices.

Market Overview

Bitcoin: $92,512 (up 2.3%)
Ether: $3,035 (up 1.2%)
XRP: $2.14 (up 0.1%)
Total Crypto Market Cap: $3.23 trillion (up 1.9%)

Key Insights

Bitcoin's Resilience Amid Market Fluctuations

Michael Saylor, the executive chairman of Strategy, addressed concerns regarding the volatility of Bitcoin, attributing any perceived wildness to Wall Street's increasing role. In an interview with Fox Business, Saylor suggested that Bitcoin is actually becoming less volatile as institutional adoption increases. He stated, "We are getting a lot less volatility," and emphasized that "Bitcoin is stronger than ever."

Positive Momentum in Asian Equity Markets Driven by AI Chip Demand

Equity markets across Asia responded positively to Nvidia’s performance. Markets in Japan, South Korea, and Taiwan experienced significant gains after Nvidia's CEO Jensen Huang expressed strong demand for the company's AI chips from major cloud computing providers, alleviating fears of an AI bubble.

The MSCI Asia Pacific index (excluding Japan) rose about 1.2% from a one-month low, while S&P 500 futures climbed approximately 1.3%. Wall Street had already ended a four-day losing streak on Wednesday, with investors reconsidering the anxiety surrounding AI valuations.

Japan's Nikkei 225 index surged about 3.2%, and South Korea's Kospi rose approximately 2.6%, driven by impressive performances from chipmakers and tech suppliers linked to Nvidia's success. Companies like Samsung Electronics, SK Hynix, and Advantest saw their stocks increase by 4%-9%. SoftBank Group also gained around 3.5%, despite having fully divested its stake in Nvidia in October.

Mixed Results in Hong Kong's Market

Not all markets experienced the same upward momentum. Hong Kong's Hang Seng index dipped about 0.1%, and a major index from mainland China, which had initially risen by about 0.7%, ultimately stayed flat due to losses in the electric vehicle (EV) sector and mixed results among Chinese tech firms.

Xiaomi continued its downturn, indicating higher global smartphone prices driven by increased chip costs. Concerns regarding a slowdown in EV demand following the end of subsidies added to the pressure on this sector.

As attention shifts back to the U.S., investors are poised for the delayed jobs report for September, which is expected later in the global session. This report will provide insight into the health of the U.S. labor market and inform the Federal Reserve's subsequent actions.

In the minutes released from the Federal Reserve's meeting in October, it was noted that while interest rates were cut, there were cautions about aggressive moves risking persistent inflation and eroding public trust in the central bank.