Bitcoin was caught in the upward momentum of a stock market rebound on Wednesday, as investors anticipated healthy results from Nvidia.
The chip-maker’s stock has rallied over 200% since January. Ahead of today’s earnings call, there were green shoots on Wall Street as the Dow Jones added 0.5%, the S&P 500 gained 1% and the Nasdaq Composite jumped 1.5%.
Bitcoin, which tends to correlate with major indices, was changing hands for around $26,427 at 12:56 p.m. ET, according to CoinGecko. The price of the world’s largest cryptocurrency by market capitalization is up 1.5% in the past 24 hours.
Nvidia’s shares jumped 2.2% on Wednesday, suggesting investors are placing bets on a repeat of the company’s impressive Q2 results in May. Investors, meanwhile, are anticipating a dovish note might be found within the nuances of Federal Reserve chair Jerome Powell’s speech on Friday at Jackson Hole, Wyoming.
Will Powell take a dovish tone?
“We expect a moderately dovish tone from Powell this week at the Jackson Hole Symposium against the backdrop of a cooling labor market, all-time high credit card debt, 20 plus year high in mortgage rates, and concerns over major economies like China,” global head of trading at Genesis Ravi Doshi told The Block.
However, senior market analyst Craig Erlam told The Block that Powell will be reticent to deviate from a hawkish message, “through fear of triggering dovish euphoria in the markets.”
“It may indicate the tightening cycle is near an end but I don’t expect much more than that as they risk triggering a rally in bonds and sharp fall in yields, which they’ll be very wary of,” he added. Last year’s hawkish announcement at the symposium ended a market rally and put traders on high alert.
