Bitcoin eyes $81K as Nvidia earnings beat boosts risk assets

Bitcoin and crypto markets experienced a surge in gains following Nvidia's Q2 earnings, which surpassed expectations by $4 billion. Bitcoin (BTC) saw a rebound towards $81,000 at the start of Thursday's trading on Wall Street, indicating strong investor confidence. TradingView data highlighted Bitcoin's new local highs of $80,808 for the BTC/USD pair, with traders targeting the $80,000 support level.

Nvidia's Q2 earnings, amounting to $96.2 billion, exceeded market projections by nearly $4 billion, resulting in a surge of over 9% in its stock price, alongside a $400 billion increase in its market capitalization. The Nasdaq Composite Index also saw a 1% increase on Thursday.

As the markets focused on the ongoing Federal Reserve's Jackson Hole economic symposium, analysts turned their attention to Chairman Kevin Warsh's keynote speech on Friday. Warsh, who is cautious about revealing future policy shifts, could help alleviate market uncertainty amidst mixed US inflation data and volatile government bond yields.

Nationwide chief US economist Kathy Bostjancic highlighted the importance of Warsh's address due to rising long-term interest rates and uncertainty surrounding inflation and the Fed's reaction.

Crypto liquidations climbed to around $417 million over 24 hours, as reported by CoinGlass. This increase occurred after Bitcoin buyers depleted significant ask liquidity in a particular price area. Analyst David Eng described this liquidity wall as "weakening" before the start of an 81,700 BTC expiry event for August options on crypto exchange Deribit.

Eng predicted that Bitcoin could break $82K, which would make the path to $85K+ much clearer. Bitcoin options open interest around the expiry date can lead to increased market volatility, with price movements gravitating towards specific strike prices.