The Chinese Ministry of Commerce announced that the discord over Nexperia has concluded. This development is vital for easing the tension between China and the EU and discussing supply chain issues, significantly impacting the resolution of the chip crisis. While the United States has tackled its challenges, the EU is now addressing these issues positively for cryptocurrencies. However, Thursday is anticipated to be a critical day for cryptocurrencies. So, what does the near future hold for us?
November 20th: A Pivotal Day for Cryptocurrencies
This week, Thursday marks a crucial moment for cryptocurrencies, with significant market movements expected within hours. BTC has reversed course after significant sell-offs, although the safe zone has not yet been reached. A close above $92,000 has not been achieved, indicating pessimism. At 00:20, the eagerly awaited NVIDIA earnings report will be released.
Important details in this report could dispel the cloud over the U.S. economy and tech companies, particularly those involved in artificial intelligence. Recently, strategic partnerships have been forged between companies like Microsoft and NVIDIA Claude. Given that crypto companies are not anticipated to become profitable for another 3-5 years, technological firms face a substantial burden. Achieving product profitability will necessitate absorbing tens of billions of dollars in costs over several years, thereby pressuring tech companies and fueling the AI bubble debate, contributing to declines in cryptocurrencies.
As Peter Thiel’s macro hedge fund has offloaded Nvidia shares, the upcoming earnings report must surpass expectations to alleviate growing uncertainty.
According to Bank of America’s November survey, 45% of fund managers identified the AI bubble as the biggest market risk, a figure up from only 11% in September, underscoring the cause of prevalent downturns.
Employment Figures Impact Market Expectations
On Thursday at 16:30 Turkey time, an hour before the U.S. market opens, data on average earnings, unemployment rate, and September non-farm employment figures will be released. Although the anticipation of a rate cut in December has diminished, disappointing reports could restore this expectation. The likelihood of a rate cut in January could further amplify. We will provide an in-depth analysis once the report is released tomorrow.
As we approach Thursday, another key event will be the FOMC Minutes, expected at 22:00 tonight. Thus, the crypto market will be confronted with extremely high volatility over the next 24 hours, driven by the convergence of these events. We anticipate dovish details in the Fed Minutes, against the backdrop of Japan’s potential December 18 rate hike and the pressure facing the Fed from carry trade dynamics. Should the latest developments in Japan necessitate a dovish tone, Fed Member Williams might offer reassuring remarks on easing tonight.
With such a packed agenda, staying updated is vital, and we will make every effort to keep pace over the coming 24 hours.