The "Super Bowl" of US stock earnings season is about to hit, and the cryptocurrency circle has quietly given NVIDIA a vote of confidence?
Some analysis indicates that based on the recent performance of AI tokens, the cryptocurrency market seems to have given a vote of confidence to NVIDIA's financial report. AI encrypted tokens have surged in the past week, outperforming the overall cryptocurrency market. Most major AI tokens have fully recovered from the market crash in early August. Some Wall Street traders closely monitor the direction of Bitcoin, believing it to be a barometer of market sentiment
The highly anticipated NVIDIA financial report is about to make a big splash in the US stock market after hours on Wednesday. NVIDIA's financial report is considered by many industry insiders to be the most important tech stock report in years, akin to the "Super Bowl" of the financial reporting season, and a stock symbol of the current era.
Some analysis points out that judging from the recent performance of AI tokens, the cryptocurrency community seems to have given NVIDIA's financial report a vote of confidence.
It is worth mentioning that some Wall Street traders closely monitor the direction of Bitcoin as an indicator of speculative heat, believing it to be a barometer of market sentiment. Morgan Stanley has pointed out that Bitcoin has become a valuable leading indicator. "New Bond King" Jeffrey Gundlach has also expressed similar views.
AI encrypted tokens have surged in the past week. AI tokens such as Near Protocol, FET, Bittensor (TAO), and Render (RENDER) have outperformed the overall cryptocurrency market, with most major AI tokens fully recovering from the market crash in early August:
- The native token of the Proof-of-Stake first-layer network Near has risen by 35% in the past week, reaching a four-week high of $5.20 on August 25.
- The FET token from the Artificial Superintelligence Alliance has seen even greater gains, soaring by about 70% in a week, reaching $1.39 on August 26.
- RENDER has accumulated an increase of about 40% in the past seven days, climbing to $6.45 on August 26.
- TAO has also performed well, rising by 26% in the past week, breaking through $350 on August 26.
Looking back over time, the market value of AI encrypted tokens has surged by nearly 80% in the past three weeks, showing a remarkable upward trend and reigniting confidence among cryptocurrency investors.
On August 26, the analysis platform Lookonchain posted on X platform, observing the huge surge and pointing out strange whale trading behavior in FET:
A whale seemed to regret selling at a lower price, repurchasing 1.79 million FET tokens from Binance for $238.5 million USDT at a high price of $1.33 on August 25.
This whale had sold 2.33 million FET tokens at $1.02 between August 11 and August 23, receiving $238.5 million USDT.
Looking back to August 6, the total market value of AI encrypted tokens dropped to $18.21 billion, hitting a new low for the year, which was related to the poor performance of the overall digital currency market. On that day, the price of Bitcoin plummeted sharply during trading hours, briefly falling below the $50,000 markAI tokens are a form of digital asset designed to promote and support projects, applications, and services based on artificial intelligence. Such cryptocurrencies support various AI-related functions.
However, it is worth noting that the bullish trend in the cryptocurrency market paused on Tuesday. Bitcoin fell back to the level before Jerome Powell's keynote speech at the Jackson Hole Global Central Bank Annual Meeting last Friday. After the U.S. stock market closed on Tuesday, Bitcoin fell $1,059 in 5 minutes to $60,203. AI tokens followed suit, indicating a certain level of caution in the market before NVIDIA's financial results were announced.
Morgan Stanley believes that NVIDIA's financial report is likely to exceed expectations, and market expectations for the company's next quarter revenue guidance have once again increased. However, more crucially, NVIDIA needs to reassure investors about concerns regarding the potential delay of Black Myth: Wukong.
Bank of America believes that the market may underestimate the risk of disappointing performance by NVIDIA. NVIDIA's options implied stock price volatility is 10%, meaning the stock price could fluctuate in either direction by 10%.
Dan Ives, one of the most influential tech stock bulls on Wall Street and from Wedbush Securities, stated that the bull market in U.S. tech stocks is being driven by the demand for new data center capacity, which is essential for the numerous AI chatbots that have emerged in recent years. "There is one company in the world that is the foundation of the AI revolution, and that is NVIDIA."
