Bitcoin News Today: Fed Halts QT as Nvidia's AI Surge Fuels Bubble Debate

The Federal Reserve has announced it will end quantitative tightening (QT) by December 1, a move that could inject liquidity into the financial system after months of balance-sheet reduction. The decision, coupled with Nvidia Corp.'s (NVDA) record-breaking third-quarter earnings and Bitcoin's rebound above $90,000, has sparked renewed optimism in markets amid lingering concerns about an AI-driven economic bubble.

Nvidia, the world's most valuable public company, reported fiscal third-quarter revenue of $57.01 billion, smashing Wall Street estimates by nearly $2 billion. The chipmaker's data center segment, which powered AI applications for tech giants like Microsoft and Amazon, contributed $51.2 billion to revenue - a sharp increase from previous periods. CEO Jensen Huang highlighted "off-the-charts" demand for its Blackwell architecture and sold-out cloud GPUs, while CFO Colette Kress emphasized CUDA-powered accelerators extending hardware lifespans and solidifying Nvidia's AI infrastructure dominance according to financial reports. The company also projected $65 billion in fourth-quarter revenue, well above analyst forecasts of $62 billion.

The stock's 5% post-earnings surge lifted broader markets, with the S&P 500 and Nasdaq Composite rising 0.38% and 0.59% according to market data. Nvidia's performance acted as a bellwether for risk sentiment, with Bitcoin climbing over $90,000 within hours of the report. The cryptocurrency had earlier dipped below $88,000 amid fears of an AI bubble, but Nvidia's results calmed jitters, sending AI-linked tokens like TAO and RNDR up 4%-5%.

However, the AI boom remains contentious. Regulators and investors have raised red flags: the Bank of England warned of systemic risks from AI in finance, while 45% of fund managers in a Bank of America survey cited an AI bubble as the top market threat. Major investors like Peter Thiel and SoftBank have trimmed stakes in Nvidia, sparking debates about sustainability. Despite this, Huang dismissed bubble concerns, calling the AI infrastructure build-out "a fundamental transformation of computing" spanning decades.

The Fed's decision to halt QT adds another layer to the macro outlook. By ceasing the $2 trillion bond runoff, the central bank aims to stabilize liquidity after years of tightening. This shift, combined with Nvidia's dominance in AI, suggests markets may yet weather near-term volatility. Yet with Bitcoin still down from its $126,000 peak and macroeconomic uncertainty persisting, investors remain on edge according to market analysis.