Crypto Market Surges Amid Rate Hike, Nvidia Predicts AI Chip Boom
Bitcoin's price surged above $80,000 on Friday, despite a Federal Reserve rate hike and the Senate's failure to pass key crypto regulation legislation. The move marked a roughly 5.5% increase in the cryptocurrency's value over 24 hours.
The broader crypto market also saw gains, with investors rotating back into digital assets. Strategy, Coinbase, and Robinhood rallied by around 12%, 10%, and 8% respectively. These stocks had sold off earlier in the week on rate fears and legislative setbacks, making their reversal swift.
Nvidia's CEO Jensen Huang predicted that the company could sell approximately twice as many AI chips in 2027 as it will in 2026, citing growth from its next-generation Vera Rubin architecture, CPUs, networking products, and other AI infrastructure. The revenue opportunity for Nvidia's AI chips is expected to reach at least $1 trillion through 2027.
Meanwhile, rising Treasury yields pushed most S&P 500 sectors lower. The 10-year U.S. Treasury yield returned to around 5%, making bonds more competitive against stocks and pushing equity valuations lower.