Kelly Greer, an analyst at digital asset company Galaxy Digital, believes the recent drop in Bitcoin’s price below $60,000 is a ‘technical sell-off’ driven by anticipation surrounding Nvidia’s upcoming earnings call.
Greer took to social media to discuss the potential impact of Nvidia’s financial report on Bitcoin’s market dynamics. She noted that over $1 billion worth of BTC was sold early Wednesday morning, involving more than 17,000 coins. This significant sell-off, according to Greer, is attributed to poor liquidity conditions, which she believes are currently at their worst.
She also pointed to ‘Gox distributions,’ previously highlighted by her, suggesting that some coins may have entered the market due to delayed distributions from custodians and exchanges. Despite this, Greer remains confident in the market’s capacity to absorb the influx of supply.
Greer’s comments come ahead of Nvidia’s earnings report, scheduled for 4 PM Eastern Time on Wednesday. She emphasized the stock’s volatile performance following past earnings calls, ranging from a 2% decrease to a 25% increase.
Based on Goldman Sachs’ data, Greer noted that prime brokerage account net allocation to semiconductors and the portfolio percentage of ‘Mag 7’ stocks are both at the 13th percentile, indicating low positioning towards semiconductors and growth. This, coupled with a positive skew towards Nvidia’s post-earnings price, suggests potential asymmetric outcomes.
Bitcoin plunged as low as $58,000 at the start of the trading day but has since recovered to $59,900 at the time of writing. The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on November 19.
