Nvidia earnings boost sparks crypto rally; Bitcoin hits $92K
Nvidia earnings for Q3 beat analyst forecasts, driven by a record $51.2 billion data center segment and strong demand for AI GPUs. The company reported $57.0 billion revenue and $1.30 EPS, and forecast Q4 revenue around $65 billion, citing “off the chart” demand for new Blackwell GPUs.
The results triggered an AI-driven crypto rally. Bitcoin surged from below $89,000 to a peak of $92,000, while Ethereum saw modest gains as traders anticipated higher GPU demand in AI and mining. GPU-focused mining stocks, including Cipher Mining and IREN, jumped on multi-billion-dollar cloud deals with AWS and Microsoft.
Profit-taking and renewed macro uncertainty reversed gains, sending Bitcoin down to $87,000 by close. Crypto exchange Bullish posted an $18.5 million Q3 profit on 72% revenue growth, though its shares remain 40% lower. The episode underscores market sensitivity to Nvidia earnings and highlights potential margin pressure from rising borrowing costs and debt-financed GPU purchases.
Bearish
The strong Nvidia earnings initially fueled an AI-driven crypto rally, pushing Bitcoin up to $92,000 on expectations of higher GPU demand. However, profit-taking and macroeconomic uncertainty led to a pullback, with Bitcoin closing at $87,000. The net price movement indicates limited sustained buying pressure. Additionally, rising borrowing costs and debt-financed GPU investments may compress miner margins, potentially damping further upside. This mixed market reaction, coupled with sensitivity to tech sector news, suggests a bearish near-term outlook for Bitcoin’s price.