bullish

Crypto market surges with stock market ahead of Nvidia earnings.

The crypto market is on the rise today, following gains in the stock market. Investors are eagerly awaiting the Nvidia earnings report, which is influencing the positive sentiment in the market. Read more about the market movements at the link provided.

nvidia earningsai sectorglobal m2riskon sentimentbitcoinethertechnical analysisdoublebottom patternmarket trendsinvestment risks

The Crypto Market Bounces Back: Understanding the Recent Rebound

The cryptocurrency market experienced a significant rebound following a recent sell-off that drove its overall valuation to its lowest since November 2024. As of Feb. 26, the market capitalization of all crypto assets had reached $2.87 trillion after rising 3.30% from its local low. This rebound was led by top coins Bitcoin (BTC) and Ether (ETH), which saw gains of 0.69% and 1.40%, respectively.

Key Catalysts for the Rebound

  • An improving risk-on sentiment ahead of Nvidia earnings.
  • Rising Global M2.
  • A potential bullish reversal indicator on the chart.

The recent recovery in the crypto market closely mirrors similar rebounds in the US stock market, notably ahead of the highly anticipated Nvidia earnings report. Nvidia's earnings have become a macro-level event influencing risk assets, especially given its leadership in AI and broader market sentiment.

Implications of Nvidia's Earnings

  • A strong Nvidia report could fuel the AI investment boom, boosting confidence in high-growth sectors like crypto.
  • The relief rally in the stock market is positively impacting the crypto market due to their prevailing positive correlation.

Cryptocurrencies associated with Big Data and the AI sector have witnessed significant price increases ahead of the Nvidia report, contributing to the overall recovery of the crypto market on Feb. 26.

Market Trends and Future Outlook

  • If Nvidia exceeds earnings expectations, both stocks and crypto could see extended gains driven by renewed risk appetite and liquidity flows.
  • The expansion of the M2 global money supply is also aligning with the crypto market's rise.

Economist Lyn Alden highlighted the correlation between Bitcoin and global M2, emphasizing that Bitcoin often moves in the same direction as the M2 money supply, further indicating potential growth for the entire industry.

Technical Analysis and Predictions

  • The oversold RSI condition and the formation of a double-bottom pattern are key technical factors driving the recent bounce in the crypto market.
  • A breakout above the neckline resistance could lead to a rally towards $3.02 trillion, supported by the 50-4H exponential moving average.

It's important to note that every investment and trading move involves risks, and readers should conduct their own research before making any decisions in the volatile crypto market.