On August 28th, Bitcoin rose to $81,500 — the rally of the largest cryptocurrency coincided with a rise in U.S. stocks following Nvidia's strong quarterly earnings report.
Nvidia's Earnings Report Lifted Stocks and Cryptocurrencies
Nvidia exceeded market expectations: revenue for the second quarter totaled $96.2 billion — nearly $4 billion more than analysts had forecast. After the report was published on Wednesday, the company's stock jumped more than 9% on Thursday, and its market capitalization grew by more than $400 billion. The technology index Nasdaq Composite was up 1% at the time of writing.
"Nvidia is currently on track for the third-largest single-day market cap gain for a stock in history," wrote analytical resource The Kobeissi Letter on social media X.
Simultaneously, markets are watching the economic symposium in Jackson Hole, which has already begun: a key speech by Federal Reserve Chairman Kevin Warsh is expected on Friday. Investors hope that Warsh, known for his restraint in comments about the regulator's future policy, will nevertheless help reduce uncertainty amid mixed U.S. inflation data and fluctuations in government bond yields.
"Chairman Warsh's speech promises to be extremely important given the rise in long-term interest rates and high uncertainty regarding the inflation trajectory and the Fed's further response," said Nationwide's chief U.S. economist Kathy Bostjancic in a comment to CNBC.
Analyst Notes Weakening Sell Wall Ahead of Options Expiration
Liquidations on the cryptocurrency market over 24 hours amounted to about $417 million, according to CoinGlass data — Bitcoin buyers gradually broke through a significant sell liquidity zone. It was previously reported that this zone extended up to the $86,000 mark, creating resistance for further price increases.
Analyst David Eng described this liquidity wall as "weakening" — this is happening ahead of the expiration of August options worth $6.58 billion (81,700 $BTC) on the crypto exchange Deribit.
"$BTC is squeezed under resistance just as the derivatives structure holding it there is poised to weaken. A break above $82K — and the path to $85K+ becomes much clearer," the analyst wrote to followers on social media X.
The key factor for the market remains the combination of strong corporate earnings in the technology sector and the upcoming Fed Chairman's speech. The situation with Bitcoin derivatives is unfolding against the backdrop of a shrinking resistance zone above $82,000.
AI Opinion
From the perspective of machine data analysis, the Jackson Hole symposium has already demonstrated the ability to sharply reverse the Bitcoin market. A year ago, the correction of the largest cryptocurrency ended with a sharp rebound to $117,421 immediately after the Fed Chairman's speech about readiness to cut rates. The historical parallel hints that the tone of Warsh's speech could play the role of a trigger for the market no less than the very structure of options on Deribit.
A technical aspect left out of the frame: the shrinking liquidity "wall" ahead of expiration often creates a gamma squeeze effect — market makers are forced to buy more of the underlying asset as the price rises, amplifying movement in both directions. The risk here is symmetrical: if the speech's tone turns out to be "hawkish," the same mechanism can accelerate a decline to lower levels no less sharply than a rise to $85,000. Should we expect a repeat of last year's scenario, or will the combination of Nvidia's record earnings and a different macroeconomic backdrop change the rules of the game this time?
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