Nvidia quarterly earnings report, which showcased a substantial revenue increase to $30 billion, has led to unexpected reactions in the cryptocurrency markets. Despite the tech giant’s financial success, reflecting a 122% year-over-year increase, the crypto sector experienced a downturn. Bitcoin retracted to $59,000 and Ethereum to around $2,500, while AI-related crypto dropped, signalling a “sell the news” response among investors.

Nvidia Earnings Trigger ‘Sell the News’ Event

The release of Nvidia latest earnings report prompted a widespread “sell the news” event across cryptocurrency markets. Investors reacted by pulling back from major cryptocurrencies such as Bitcoin and Ethereum immediately following the announcement. 

This phenomenon, where traders sell assets following the announcement of seemingly positive news, highlights the unpredictable nature of crypto markets.

Despite the financial performance, the immediate market response was less favourable than anticipated. The tech giant’s impressive revenue growth was overshadowed in the crypto markets by a rapid decrease in value across several digital currencies, including AI-driven tokens.

Nvidia Q2 Earnings Details

Nvidia reported a striking increase in quarterly revenue, reaching $30 billion, a 122% rise from the previous year. Earnings per share also saw a notable increase to $0.68, surpassing the expected $0.64. This growth was primarily fueled by robust demand for Artificial Intelligence and gaming products.

Despite these strong figures and surpassing Wall Street forecasts, the investor response to Nvidia stock was mixed. Following the initial surge, the stock price experienced a decline, suggesting that market expectations might have already adjusted.

AI Coins, BTC, ETH Price Action

Following Nvidia earnings release, specific AI-related crypto showed significant price movements. Tokens such as Artificial Superintelligence Alliance (FET) and Bittensor (TAO) saw declines of 6% and 4.5%, respectively. Concurrently,  Render (RNDR) fell by 6.4% at press time.

In parallel updates, cryptos like Bitcoin and Ethereum also faced downturns. Bitcoin price, for instance, fell sharply to $59,000 before recovery, while Ethereum dropped to $2,500. These movements underscore cryptocurrency markets’ high volatility and sensitivity to developments within the tech industry.

The post Nvidia Earnings Trigger ‘Sell the News’ Event In Crypto Market appeared first on CoinGape.

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Filed under: News - @ August 29, 2024 1:21 pm