Bitcoin Defies Gravity: Holds Firm at $91K as Nvidia Earnings and Jobs Data Loom

Bitcoin isn't blinking. The flagship cryptocurrency maintains its $91,000 stronghold while traders hold their breath for two market-moving events.

The Nvidia Effect

All eyes turn to chip giant Nvidia's earnings report - a bellwether for AI and tech sentiment that increasingly moves crypto markets. When Nvidia sneezes, digital assets catch cold.

Jobs Data Jitters

Meanwhile, key employment numbers threaten to reshape Federal Reserve policy expectations. Strong jobs data could delay rate cuts - the eternal hope of Wall Street's rate-cut addicts.

Bitcoin's resilience at this level signals institutional confidence despite the macro uncertainty. The $91,000 support wall stands firm while traditional finance waits for its next government-approved economic indicator.

Funny how the 'decentralized' future still hangs on centralized earnings calls and employment reports. The revolution will be televised - on Bloomberg terminals.

TLDR

• Bitcoin trades around $91,000 after dropping to seven-month lows below $90,000 on Tuesday
• Federal Reserve officials delivered hawkish remarks, reducing expectations for near-term rate cuts
• Delayed September jobs report due Thursday could influence Fed policy and Bitcoin direction
• Crypto exchange Kraken raised $800 million in funding, reaching a $20 billion valuation
• Federal Reserve will stop shrinking its balance sheet in December and may launch repo operations to improve liquidity

Bitcoin traded at $90,953 on Wednesday morning, up 1.4% from the previous session. The price briefly fell below $90,000 on Tuesday, marking its lowest level since April.

The cryptocurrency attempted to climb back toward $94,000 but failed to maintain those gains. Broader market sentiment remained cautious as traders waited for economic data.

Federal Reserve Policy Weighs on Markets

Multiple Federal Reserve officials delivered hawkish comments in recent days. They stressed that inflation progress has been uneven and indicated limited room for additional rate cuts this year.

These statements reduced expectations for near-term monetary easing. Cryptocurrencies typically struggle when the Fed maintains tight policy.

Traders are divided on the December 10 Fed decision. Markets show a split between expectations for a 0.25% rate cut and keeping rates steady at 4%.

President Donald Trump’s tariffs have added inflation pressure, according to Fed officials. This reduces the central bank’s ability to lower rates and support economic growth.

Fed Governor Christopher Waller expressed concern about restrictive monetary policy on Monday. He worried about its effect on lower and middle-income consumers.

Jobs Data Could Provide Direction

The delayed September jobs report will be released on Thursday. The government shutdown last month pushed back its publication.

This data could clarify the strength of the labor market. It may also influence the Fed’s next policy moves and provide direction for Bitcoin.

Trump announced he has selected his preferred choice for the next Fed chair. Current chair Jerome Powell’s term runs through May 2026.

Speculation about a new nominee has unsettled investors concerned about central bank independence. This adds another LAYER of uncertainty to markets.

Liquidity Conditions May Improve

Bitcoin’s weakness started in early October, before recent Fed comments. US import tariffs helped narrow the monthly government deficit.

The Fed’s balance sheet continued to shrink, causing the US dollar to strengthen. Bitcoin typically moves opposite to the dollar index.

Financial conditions worsened as freight activity slowed and housing markets softened. Companies faced tighter cash flows, according to Savvy Wealth.

The Fed signaled it will stop reducing its assets below $6.5 trillion starting in December. The central bank may also launch repurchase agreement operations.

These repo operations inject cash into financial markets while keeping the Fed’s balance sheet unchanged. This could ease liquidity concerns by adding reserves to banks.

Trump directed Treasury Secretary Scott Bessent to prepare a stimulus campaign for early 2026. The plan targets lower-income households.

Import tariffs may be gradually reduced to lower inflation risks. However, fiscal conditions are expected to worsen in 2026 as new legislation takes effect.

Real estate and auto sectors show weakness, placing pressure on regional banks. bitcoin and other risk assets have reacted defensively to these conditions.

Crypto exchange Kraken raised $800 million in a funding round on Tuesday. The company is now valued at $20 billion, up 33% in under two months.