Summary
- Nvidia reported a remarkable $46 billion in profits for the second quarter.
- The U.S. economy experienced a growth rate of 3.3% in Q2.
- Solana rose by 2.3%, with analysts noting interest from treasury firms.
On Thursday, Bitcoin and other cryptocurrencies saw an increase as investors reacted to Nvidia’s strong earnings and indications of a robust U.S. economy.
Bitcoin was trading at about $113,000, reflecting a 0.9% rise over the previous day, according to CoinGecko. In contrast, Solana climbed 2.3% to $212, peaking at nearly 5% before pulling back.
Ethereum and XRP saw declines of 2.7% and 0.8%, respectively, with ETH trading around $4,500, significantly lower than its recent all-time high.
On Wednesday, Nvidia announced record profits alongside its ninth consecutive quarter of revenue growth exceeding 50%. The firm achieved $46 billion in the second quarter, even without selling its AI chips to China during that time.
Nvidia’s stock fell by 1.3% to $179 on Thursday, according to Yahoo Finance. Despite this, the shares are up 2.6% for the week and 34% year-to-date, indicating persistent confidence in artificial intelligence fueling high valuations on Wall Street.
Bitcoin’s fortunes are closely linked to those of Nvidia. With the chipmaker accounting for an 8.8% weight in the S&P 500, fluctuations in the $4.4 trillion company’s stock can significantly impact Bitcoin, given the correlation between crypto and equities.
The U.S. Commerce Department reported on Thursday that the gross domestic product rose by an annualized rate of 3.3% in Q2. Initial forecasts had anticipated a 3.0% annualized growth, indicating better-than-expected performance amidst shifting tariffs and trade policies.
Solana’s rise on Thursday stood out, especially as recent cryptocurrency gains have largely been driven by Ethereum’s performance.
However, since August 10, Solana has exhibited “relative strength” compared to Bitcoin and Ethereum, as price ratios have improved from recent lows, according to Jake Ostrovskis, an OTC transfer agent at Wintermute.
Interest in the cryptocurrency has surged, stemming from “increased attention on treasuries targeting the asset,” said Ostrovskis. Earlier this week, The Information noted that venture capital firm Pantera Capital is attempting to raise $1.25 billion for a Nasdaq-listed vehicle focused on Solana.
Solana treasury firms could potentially absorb the monthly vesting supply of approximately 609,000 SOL from the defunct crypto exchange FTX. The bankrupt exchange began making repayments to customers in February.
“Transforming this ‘overhang’ into staked, treasury-held assets would reduce the effective circulating supply, alleviating downward pressure and paving the way for sustained growth,” Ostrovskis remarked.
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