Bitcoin News Today: Nvidia's Earnings: The Make-or-Break Moment for Markets

Extreme caution has gripped global markets as equities and cryptocurrencies face sharp declines, driven by heightened uncertainty over artificial intelligence-driven growth, shifting Federal Reserve policy expectations, and deteriorating investor sentiment. The S&P 500 eked out modest gains on Wednesday, with Nvidia (NVDA) rising 2.9% ahead of its highly anticipated earnings report, while the Nasdaq advanced 0.6% and the Dow inched up 0.1%. Meanwhile, Bitcoin (BTC) slumped below $90,000, marking its lowest level since April, as record outflows from BlackRock's iShares Bitcoin Trust (IBIT) signaled deepening pessimism.

The S&P 500's rally remains narrowly concentrated in mega-cap tech stocks, with Nvidia's performance seen as pivotal for the broader market. Analysts warn that a miss in the chipmaker's quarterly results could trigger a sharp sell-off, given its outsized influence. "Nvidia's earnings have become a make-or-break moment for the AI-driven rally," said one strategist, noting that options markets imply a potential $320 billion swing in market value post-earnings. The stock's recent consolidation reflects a market bracing for volatility, with sell-side consensus expecting $55 billion in revenue for the third quarter.

In the crypto space, the rout has been even starker. BlackRock's IBIT logged $523 million in outflows on Tuesday- the largest single-day redemptions since its January 2024 launch, bringing November's total to $2.96 billion. This follows a broader selloff, with Bitcoin down 30% from its October peak and Ether (ETH) falling over 6% to $2,923. The collapse has been exacerbated by leveraged liquidations, regulatory uncertainty, and waning expectations for Fed rate cuts. According to Pepperstone's Dilin Wu, "ETF outflows combined with long-term holder sales have tightened liquidity, pushing prices lower and highlighting weakening confidence."

The Federal Reserve's shifting stance has compounded the decline. Traders now assign just a 33% chance of a December rate cut, down from near certainty three weeks ago, after the Bureau of Labor Statistics delayed critical jobs data until after the Fed's December meeting. Fed officials, meanwhile, remain divided on further easing, with hawkish members wary of inflation risks. The uncertainty has spilled into crypto markets, where lower rates typically support risk-on sentiment. Bitcoin's plunge from $110,000 to $89,000 since late October underscores the sector's sensitivity to monetary policy shifts.

Market sentiment has turned deeply bearish, with the Crypto Fear & Greed Index hitting 11-its lowest level since late 2022. The index, which aggregates volatility, volume, social media sentiment, and other metrics, reflects extreme fear across crypto markets. Analysts noted "historically, periods of maximum fear have often preceded significant rebounds, but the current environment suggests panic is overwhelming rational decision-making."

While some sectors have shown resilience, such as GE Vernova's 7.3% surge on a major wind turbine upgrade deal, the broader trend is one of caution. Constellation Energy (CEG) climbed 5.3% after securing a $1 billion loan to restart a nuclear reactor, while Lowe's (LOW) rose 4% on strong quarterly resultshttps://www.investopedia.com/s-and-p-500-gains-and-losses-today-ge-vernova-powers-higher-eversource-energy-stock-plunges-11853053. However, these gains contrast sharply with the broader market's fragility, as investors brace for further volatility in both equities and crypto.