Bitcoin Bounce Fizzles as Nvidia's Slide Ahead of Earnings Adds to Risk-Off Mood

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Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.

, bitcoin managed a bounce back above $60,100 during early U.S. trading on Friday, but that's mostly evaporated as the noon hour approaches. Now at $58,800 bitcoin is lower by 4.5% over the past 24 hours. The broaderoutperformed by a hair, falling 4% over the past day, but longer-term, the second-largest crypto has seen its price relative to bitcoin plunge 21% this year to its lowest level since April 2021.

Behind the divergence, it's been a tale of two starkly different spot ETF launches this year, with the bitcoin funds pulling in more than $10 billion in net inflows while the ether vehicles on a net basis have bled assets since their introductions.Adding to pressure on crypto were declines in the major U.S. stock averages, led by 1.3% drop in the tech-heavy Nasdaq.

Also prompting some nervousness is the idea that investors may have read too much into Fed Chair Powell's dovish remarks at the central bank's Jackson Hole conference late last week. Traders Friday quickly moved to price in nearly a 50% chance of the Fed cutting its benchmark fed funds rate by 50 basis points at the upcoming September meeting.

There's still plenty of data to come in between now and that September meeting, however, including the government's employment and inflation reports for August. Those numbers are likely to have to come in pretty soft for the Fed to make such a large cut in rates so quickly. At the current time, the odds of a 50 basis point move have drifted down to 36%,in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.

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