Bitcoin faces renewed selling pressure in US trading hours as macro sentiment turns cautious ahead of Nvidia's earnings report, viewed by some analysts as the market's biggest event this quarter.
The cryptocurrency retreated from recent highs as institutional investors trimmed positions. Trading desks attributed the weakness to risk-off positioning before Nvidia's results, scheduled for later this week. The chip giant's earnings carry outsized weight for tech stocks and crypto markets given its dominance in AI infrastructure and GPU manufacturing. Any miss on guidance could trigger broader equity selloffs that flow into digital assets.
Bitcoin's price action reflects broader macro instability. The S&P 500 and Nasdaq posted modest losses as Treasury yields climbed. Real yields, which influence risk asset appetite, gained ground on inflation data. Crypto markets move in lockstep with risk sentiment, and when equities wobble, bitcoin typically follows.
Analysts split on whether Nvidia's earnings become a catalyst or merely a scheduled volatility event. Bulls argue the company's dominance in training AI systems ensures sustained demand. Bears note the stock has already priced in outsized growth expectations. If Nvidia guides conservatively or growth assumptions compress, equities could crack harder than anticipated.
Bitcoin holdings on exchanges ticked up marginally, suggesting some profit-taking. Whale wallets accumulated coins, but retail flows showed distribution. This divergence signals uncertainty among large holders about near-term direction.
The timing matters. Bitcoin was already struggling to break above $67,000 resistance. Fresh US selling suggests sellers remain active at elevated prices. Technical support sits around $65,000, with deeper support at $63,500.
Nvidia dominates the AI chip market. Its Q1 revenue runway depends on continued capex spending from major cloud providers. If that narrative cracks even slightly, risk assets deflate together. Bitcoin, lacking fundamental cash flows, gets hit hardest in such