Bitcoin Price Action Disagrees with Priced-In Stock Market Reaction
Nvidia's upcoming earnings report and Fed Chair Kevin Warsh's speech at Jackson Hole may have little impact on stocks, but their effect on Bitcoin is uncertain.
Equity strategists like Gilman Hill Asset Management CEO Jenny Harrington believe that earnings growth is driving the stock market rally this year, making Nvidia's print and the Fed's rhetoric less relevant. However, crypto analysts disagree on whether Bitcoin will react to these events.
Some analysts argue that the Treasury's recent bond buybacks have already expanded liquidity, which has historically had a positive effect on Bitcoin prices. The Treasury's move last week pulled long-end yields lower and pushed Bitcoin above $75,000, where it has remained for several days.
Gautam Chhugani of Bernstein notes that this reaction is not a one-off event but rather a historical pattern. Arthur Hayes, co-founder of BitMEX, also agrees that avoiding risk assets after the Treasury's move would be a mistake if liquidity drives this rally.