Bitcoin Ahead of Nvidia's Earnings: Can It Reach $80,000 Again?

▲ Nvidia, Bitcoin/ChatGPT Generated Image ©

Bitcoin (BTC) has recovered the $77,000 mark, but market tension is rising again ahead of the US Federal Open Market Committee (FOMC) meeting minutes and Nvidia's earnings announcement.

According to the investment media FXStreet on May 20 (local time), Bitcoin is showing a rebound above $77,000 after a recent correction, but institutional fund outflows and macroeconomic uncertainties are still suppressing its upside. The market is focusing on the FOMC meeting minutes to be released today and Nvidia's first-quarter earnings announcement as key variables.

Nvidia is expected to report revenue of $78.91 billion in this earnings announcement. This is an increase of about 15% from the previous quarter and about 80% from the same period last year. The market is particularly paying attention to CEO Jensen Huang's future guidance. FXStreet analyzed that since Nvidia accounts for approximately 13-14% of the Nasdaq 100 index, its earnings results could affect risk assets across the board. The high correlation between Nasdaq 100 and Bitcoin is also being highlighted again.

Nikolai Sondar-Goddard, a research analyst at Nansen, predicted in an interview with FXStreet that “if earnings beat expectations, risk appetite will revive, and Bitcoin could reattempt $80,000.” Conversely, if earnings fall short of expectations, there is a possibility of accelerated fund movement into stablecoins. Currently, Bitcoin's open interest is around $2.17 billion, indicating it is not in an overheated zone.

Macroeconomic variables are also weighing on the market. Stronger-than-expected US April Consumer Price Index (CPI) and retail sales figures have heightened concerns about the Federal Reserve's (Fed) hawkish stance. This, coupled with the prolonged war in the Middle East and rising international oil prices, has increased inflation vigilance. FXStreet reported that if the FOMC meeting minutes released today confirm the possibility of further tightening, it could negatively impact risk assets like Bitcoin.

Institutional fund flows are also slowing down. According to SoSoValue data, Bitcoin spot ETFs recorded a net outflow of $331.05 million on Tuesday. The previous day also saw an outflow of $648.64 million, with the total net outflow for the past week reaching $1 billion. FXStreet analyzed that if US Treasury yields rise and safe-haven sentiment strengthens, funds could shift to the bond market, potentially contracting liquidity in the cryptocurrency market. Technically, the $76,700 level, where the 50-day and 100-day exponential moving averages are located, is considered a key support level.

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