Key Insights
- US-based Chip designer Nvidia earnings release on Friday went beyond expectations. Stellar numbers and solid guidance words pumped its stock (NVDA) by roughly 5%.
- However, the euphoria was short-lived, as the stock dived by more than 5% the same day.
- Meanwhile, BTC ended up wiping out all of its gains of 2025.
Nvidia (NVDA) dump signals meant only one thing – the market bubble fear isn’t gone. Bitcoin on the other hand, dived amid a strong pessimistic outlook.
The unusual level of volatility, seen typically only in the crypto market, suggests that major market shifts lay ahead.
Nvidia (NVDA) Post-Earnings Volatility Made Crypto Look Less Risky Than Usual
Regular market commentator and pundit X handle The Kobeissi Letter noted how the stock market swung around roughly 30% of the total crypto market cap within a single day.
NVIDIA’s market cap went up by around $450 Billion amid strong earnings numbers. however
Such price swings are rare in the US stock market. For a moment, everyone believed that NVDA silenced proponents of the AI-bubble theory.
On Nov 20, the USs’ first Exchange Traded Fund (ETF), the SPDR S&P 500 (SPY), which tracks the S&P 500, opened 1.5% up only to close 1.5% down later in the day.
Luke Kawa of Sherwood news pointed out that such a move in the ETF had been reported only three other times in its 32-year history.
The third time was this year on April 8th when President Trump announced a 100% spike in tariffs on China.
The other two times happened on October 7th and 9th, 2008 amid the housing market-led recession.
In terms of volatility, Bitcoin was not far behind the stock market. It’s fall from $87,000 to below $81,000 dragged the crypto market downwards on Friday (Nov 21).
Longs liquidated on that day included roughly $770 million. BTC managed to close at around $85,000 that day.
US Crypto ETFs posted record activity levels on Friday. BTC Spot ETFs posted a single-day net outflow of $903.11 million, the second-highest single day outflow.
Their total trading volume for Friday hit the $11 billion mark for the first time since their launch in January 2024.
Nvidia (NVDA) is 30% Up YTD While BTC Lost its YTD Gains
The stock market may have tasted volatility characteristic of the crypto market, but it can’t beat Bitcoin. Bitcoin demonstrated much higher volatility than Nvidia this year, in terms of price performance alone.
At press time, BTC was trading at $86,646.94. While the US stock market is closed for the weekend, the BTC market remains open 24 by 7.
BTC was up 2.82% intraday, but down over 9% in the last seven days. Over the past few weeks, the top crypto wiped out its gains made since the start of the year.
In fact, BTC is down roughly 10% from its price at the start of the year. It is over 33% below its all-time high ($126,198) clocked days before the October 10 crypto market crash.
In the smaller time frame, Nvidia (NVDA) doesn’t fare well either. It was priced at $178.8 at market close on Friday.
Over the last five days, it was down around 4% and year to date, it was down by 30%. Also, it was 13% below its all-time high. However, it is around 30% above its price at the start of the year.
Nvidia leads the AI story in the world, not just the US. This wasn’t the first time it beat its earnings estimates. In one of TCR’s recent stories, Arnold explained how AI had broken the
Why is There Volatility?
Despite strong numbers for Nvidia, the AI-bubble fears are alive. The Big Short fame Dr. Michael Burry has over $1 billion in short positions on AI stocks, including Nvidia (NVDA).
Burry maintains that the major AI-promoting companies are inflating their earnings. Meanwhile, after Thursday’s crypto market drawdown, the crypto market was left searching for answers.
Some analysts pointed out that the Morgan Stanley Capital International’s (MSCI) October 10 proposal to delist companies like Strategy from its indices was the root cause of the present slump.
MSCI’s proposal will be confirmed by January 15, when it will announce its final decision regarding its treatment of digital asset treasuries (DATs) like Strategy.
Lastly, it is important to note that bubble fears and policy changes are pronounced by macroeconomic changes.
During these drawdowns, the markets were also trying to price in central bank policy rate changes amid all the AI-bubble speculation and Strategy’s delisting drama.
Fed’s December rate cut odds are dropping gradually. Still, there’s no consensus that a rate cut is completely ruled out.