Trump-Backed Fed Tilt, Nvidia AI Earnings Weigh on Bitcoin
Bitcoin fell as traders turned cautious amid a potential Fed policy shift driven by Trump-supported board appointments. QCP Capital warns these changes could tilt the Fed dovish, making policy data-dependent after weaker nonfarm payroll revisions and a focus on labor market metrics. Meanwhile, Nvidia’s AI earnings report will test expectations for sustained revenue growth from its data center division. In crypto markets, QCP noted that large Bitcoin holders, or whales, have increased realized selling pressure. A broader equity sell-off could trigger further BTC outflows, challenging institutional allocations rather than signaling a lasting demand drop. Traders should monitor upcoming FOMC statements, labor data, and AI revenue updates to assess volatility and positioning in Bitcoin.
Bearish
The news is bearish for Bitcoin in the near term. A Fed tilt toward dovish policy, driven by Trump-backed appointments and softer labor data, could reduce upward pressure on interest rates and drive markets into risk-off mode. Combined with Nvidia earnings that may not meet AI growth expectations, large holders (whales) could accelerate selling, similar to past periods when equity volatility spurred BTC outflows in Q1 2022. Short-term, traders may see heightened volatility and downward pressure as institutional allocations are tested. Over the long term, Bitcoin’s fundamentals remain tied to demand from crypto investors and its hedge appeal, but repeated data-driven Fed pivots and tech earnings misses could prolong bearish sentiment.