Bitcoin price remains stable following Nvidia's earnings report and awaits important US economic data.

Hue Bitcoin price BTC Stable on Thursday morning after the report was released. NVIDIA profit The fourth quarter beat expectations, providing great support to prices of AI currencies. This was before the release of new US data on two important economic indicators: initial jobless claims and home sales.

As of this writing, Bitcoin is trading at $51,823.78, up 0.3% from yesterday and little changed from last week, according to data from CoinGecko.

Both BTC and Ethereum showed signs of traders taking profits and waiting to see where the market goes following US reports of initial jobless claims and existing home sales.

Expectations drive prices as AI currencies take center stage

Markets fell ahead of Nvidia's fourth-quarter earnings report, which beat expectations and fueled a rally in artificial intelligence (AI) tokens. AI token activity has picked up in the past week, fueled by OpenAI's launch of its Sora product. The total market capitalization of AI tokens has surpassed $15 billion, with Worldcoin (WLD) reaching a record high.

Filtering futures contracts and traders' forecasts

Price fluctuations led to the liquidation of more than $200 million worth of cryptocurrency futures contracts. Of this amount, $150 million was bet on rising prices. Forecasters were impacted by subsequent price declines as the market rebounded following Nvidia's report.

Accordingly, some traders said sales were expected. They do not indicate a broader market trend by referring to price action analysis.

“Bitcoin managed to avoid a significant sell-off without repeating the upward momentum seen in recent days,” Alex Kubcekiewicz, senior currency analyst at FxPro, said in an email. He added: “Technically, Ethereum’s fall to $2,700 is a correction to this month’s gains and shouldn’t be too much of a concern.” He continued by saying, “A breakout of these levels could be a source of concern for these assets.”

US Interest Rates and Bitcoin Price

Investors are keeping a close eye on economic indicators as they try to predict when the US Federal Reserve might eventually cut interest rates in 2024. At the moment, hints have been voiced by members... Federal Open Market Committee (FOMC) Optimistic.

Federal Reserve Governor Michelle Bowman said at a banking event in the US capital yesterday: "I think we still have plenty of time to have more confidence in the direction the economy is heading. I think at some point there will be The time is right to begin the process of lowering interest rates." "But given the uncertainty of the data, I don't have complete confidence... definitely not right now."

Investors clearly understood her words.

There are 27 days left until the next Federal Open Market Committee meeting. Only about 5% of investors expect the committee to cut interest rates in March, according to the tool. CME FedWatch. Data now shows that 54% of traders believe the Federal Reserve will cut interest rates in June.

In general, digital assets and stocks are considered “high risk” assets. Investors tend to allocate a larger share of their portfolios to these assets when federal funds rates are low.

The stock market may support the price of Bitcoin

Yuya Hasegawa, cryptocurrency analyst at Bitbank in Japan. Daily flows into US Bitcoin exchange-traded funds (ETFs) in search of trader performance metrics. He noted that flows fell sharply compared to last week, from about $300 million per day to $135 million.

“However, this number is still three times the amount of BTC supplied to the network in a single day,” he wrote. “This does not mean that selling pressure from ETFs exceeds demand. A US stock market recovery could boost Bitcoin price BTC Within the current range, but the $53,000 level could be a difficult barrier to break through.”