Bitcoin (BTC/USD) experienced a downturn on Monday, slipping below the $64,000 mark during European trading hours. The 1.2% decline to $63,400 followed a brief 5% rally on Friday, fueled by optimistic comments from U.S. Federal Reserve Chair Jerome Powell. Powell’s remarks at the Jackson Hole symposium hinted at a forthcoming monetary easing cycle, which initially boosted risk assets as investors responded to the prospect of more accessible funding.
Over the weekend, major cryptocurrencies saw a mix of gains and losses. Ether (ETH/USD) hovered just above $2,700, while Solana (SOL/USD) and Ripple (XRP/USD) traded at $157 and $0.59, respectively. In contrast, Tron (TRX/USD) saw a 3% increase, buoyed by the ongoing enthusiasm around meme coins.
On Monday, attention shifted to artificial intelligence (AI) tokens, which led the market surge as traders in Asia heavily invested in FET/USD, the token associated with the ‘Artificial Superintelligence Alliance,’ and Bittensor TAO/USD. This move comes ahead of Nvidia’s highly anticipated earnings report, set for August 28.
Historically, Nvidia’s performance has been a key indicator for the AI token space, with traders often positioning themselves in advance of the company’s earnings announcements. FET recorded an 8.8% gain by early afternoon in Hong Kong, while TAO was up by 4.7%. Analysts, citing expectations from FactSet, predict Nvidia’s upcoming earnings will be a blockbuster event, with earnings per share projected to soar by 141% to $0.65, and revenue expected to reach $28.72 billion, a 113% increase year-over-year. This would mark Nvidia’s fifth consecutive quarter of triple-digit growth, reinforcing the strong performance of the tech sector, particularly as the Federal Reserve is anticipated to lower interest rates in September.
Sharing his perspective on Bitcoin’s current status and its potential future, Anthony Scaramucci, the founder of SkyBridge Capital, said he does not see Bitcoin as a store of value today, but an early-adopting technology. While acknowledging Bitcoin’s potential to evolve into a store of value, Scaramucci pointed out the significant regulatory challenges it faces. Scaramucci also expressed his disapproval of certain market trends, particularly the rise of meme coins. He emphasized the need to focus on the positive developments in the cryptocurrency space, such as the advancements in Bitcoin’s payment systems and other Layer-1 technologies that have the potential to drive economic progress. Looking ahead, Scaramucci is optimistic about Bitcoin’s broader acceptance, especially as financial advisors begin to advocate for its inclusion in investment portfolios.
In a note shared with Benzinga, Alvin Kan, COO, Bitget Wallet, said the current overall economic environment is still in a high interest rate state, and Bitcoin’s price breakthrough can only be achieved after the Federal Reserve starts to cut interest rates and the market is fully active. “With the increase in capital inflows, the mainstream recognition of Bitcoin is also increasing, further promoting its status as an investment asset,” Kan said.
As the digital assets landscape continues to shift, events like Benzinga’s Future of Digital Assets on November 19 will be crucial in bringing together industry leaders, investors, and regulators to discuss the challenges and opportunities ahead.
