Bitcoin and Nasdaq 100 Experience Decline Ahead of NVIDIA Earnings Report

Bitcoin’s price has fallen below $95,000, while the technology-heavy Nasdaq 100 index dropped for the second consecutive day ahead of NVIDIA’s highly anticipated earnings report. The cryptocurrency has declined to $93,690, down 13.3% from its highest level this year.

NVIDIA Earnings Report: A Key Catalyst for Bitcoin and U.S. Stocks

The main catalyst for Bitcoin and U.S. stocks this week will be NVIDIA’s upcoming earnings report, which will offer valuable insights into the state of the artificial intelligence industry. As the second-largest company by market capitalization, valued at over $3.285 trillion, NVIDIA’s results are particularly significant. The company’s influence in the AI sector and its role in the stock market rally over the past two years make its earnings report a crucial event to watch.

Analysts’ Expectations and Potential Impact on Bitcoin and U.S. Stocks

Analysts expect NVIDIA’s revenue to reach $38.15 billion, a 72% increase from the same quarter in 2023. If the company fails to meet these expectations, it could trigger a major sell-off in both equities and cryptocurrencies, as the two markets are often correlated. James Toledano, the Chief Operating Officer of Unity Wallet, notes that “the sentiment and expectation around Bitcoin’s price is that it should be going stratospheric since President Trump took office on Jan 6th. But the reality is that the price has gone south, likely due to tariff trade wars, fragile peace talks in Eastern Europe, fears around DeepSeek’s impact on the US tech sector.”

Tariffs and Their Potential Impact on Bitcoin’s Price

Bitcoin and the Nasdaq 100 have also retreated amid concerns over Donald Trump’s proposed tariffs. The former president has warned that steel and aluminum tariffs will take effect on March 1, while a 25% tariff on Mexican and Canadian goods is set to begin on the same day unless a deal is reached. Tariffs could impact Bitcoin’s price by fueling inflation, which may prompt the Federal Reserve to maintain a hawkish stance. Risk assets, including Bitcoin, tend to underperform in a hawkish Fed environment.

Technical Indicators Suggest a Potential Rebound for Bitcoin

Technical indicators suggest that Bitcoin may stage a rebound this week. On the daily chart, Bitcoin has formed a falling wedge pattern, with the two trend lines nearing their confluence point. A bullish breakout typically occurs when this confluence is about to happen. Additionally, the two lines of the MACD indicator are nearing a bullish crossover. Historically, such crossovers have preceded brief or prolonged rebounds. A bullish breakout could push BTC’s price back toward $100,000 in the near term.

Some key points to consider:

  • Bitcoin’s price has fallen below $95,000, down 13.3% from its highest level this year.
  • NVIDIA’s earnings report will offer insights into the state of the artificial intelligence industry.
  • Analysts expect NVIDIA’s revenue to reach $38.15 billion, a 72% increase from the same quarter in 2023.
  • Tariffs could impact Bitcoin’s price by fueling inflation and prompting a hawkish Fed stance.
  • Technical indicators suggest a potential rebound for Bitcoin.

“I think the sentiment and expectation around Bitcoin’s price is that it should be going stratospheric since President Trump took office on Jan 6th. But the reality is that the price has gone south, likely due to tariff trade wars, fragile peace talks in Eastern Europe, fears around DeepSeek’s impact on the US tech sector.” – James Toledano, Chief Operating Officer of Unity Wallet

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