Crypto Stocks, Nvidia Rise Alongside Bitcoin Ahead Of US CPI

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As a seasoned crypto investor with a keen eye for market trends and a knack for navigating the volatile world of digital assets, I find myself cautiously optimistic about the recent rebound in Bitcoin (BTC) above $55,000 and the parallel recovery of crypto stocks like Coinbase, MicroStrategy, Marathon Digital Holdings, Riot Platforms, and even tech giants like Nvidia. Having weathered numerous market fluctuations, I’ve learned to read between the lines and not jump to conclusions too quickly.

bitcoin (BTC) has surpassed $55,000 again after falling below $54,000 over the weekend, following a disappointing August jobs report that hinted at continued economic risks of recession in the U.S. Simultaneously, stocks associated with cryptocurrencies have also seen a significant recovery. Notably, the US stock market faced a loss exceeding $1.05 trillion last week, impacting these particular stocks. However, neither BTC nor crypto stocks can claim to be out of danger entirely, considering the upcoming release of the U.S. Consumer Price Index (CPI) this week.

Nevertheless, market experts such as Arthur Hayes seem to have reassured investors, suggesting that they should not be alarmed after the recent market drops on weekends.

Nvidia, MicroStrategy, Crypto Stocks Rebound

As an analyst, I’ve observed a resurgence in the performance of crypto stocks, such as Coinbase stock, mirroring Bitcoin’s recovery. With Bitcoin breaching the $55,000 mark, my analysis reveals that COIN’s price has climbed by more than 3% since the market opened on Monday, September 9.

In simpler terms, despite being primarily known as a tech firm, MicroStrategy’s involvement with Bitcoin gives it a ‘crypto-like’ status. Notably, the value of MSTR stocks has risen by more than 4.50% since the market started trading today.

Currently, American Bitcoin mining firms such as Marathon Digital Holdings and Riot Blockchain are experiencing gains of around 3% and 2%, respectively, since the market opened. It’s no wonder that these cryptocurrency-related stocks have recovered alongside Bitcoin, considering their close connection to its performance.

In contrast to last week’s market downturn, where Nvidia’s stock played a significant role, it has since rebounded. Since the market opened on Monday, NVDA has seen an increase of more than 2%.

It’s interesting to note how the price of Bitcoin tends to mirror these particular stocks. Given this connection, if these blue-chip stocks start to rebound, there’s a possibility that Bitcoin could continue its upward trend. However, it’s important to keep in mind that September has traditionally been a challenging period for these stocks and Bitcoin. So, whether this is merely a brief recovery or a sign of a larger bullish shift is yet to be determined.

US CPI To Determine Fate Of Bitcoin

This coming week’s macroeconomic happenings will significantly influence the value of Bitcoin and these particular stocks. Throughout this year, macroeconomic factors have played a significant role in shaping the value of such assets, as investors closely monitor the state of confidence in these risky investments, reflecting on the health of the U.S. economy.

This week, the focus shifts back to the U.S. economy as we anticipate the publication of key inflation figures: the August Consumer Price Index (CPI) and Producer Price Index (PPI). The CPI report is scheduled for Wednesday, September 11, followed by the PPI report on Thursday, September 12.

Besides offering a glimpse into the present economic condition of the United States, these inflation figures will offer hints about the potential actions the Federal Reserve might take during its upcoming FOMC meeting, scheduled for September 17-18 next week. At this point, it’s anticipated that the Fed will lower interest rates, which could bring comfort to the market as investors may feel more assured to invest in Bitcoin and cryptocurrency stocks.

Based on the CME FedWatch Tool, it appears that traders anticipate a high likelihood of 71%, with a remaining probability of 29%, for the US Federal Reserve to reduce interest rates by either 25 or 50 basis points (bps).

According to an analysis by CoinGape, the recent recovery of Bitcoin’s price might be a bear trap given potential challenges such as impending recession and economic instability on the horizon. Currently, Bitcoin is being traded at around $55,280 in the past 24 hours, and there has been a notable surge of 68% in trading volume over the same period.

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2024-09-09 20:18