Bitcoin Updates: Federal Reserve Pauses QT While Nvidia's AI Boom Sparks Bubble Concerns
- The Fed will end quantitative tightening by December 1, aiming to stabilize liquidity after years of balance-sheet reduction. - Nvidia reported $57.01B Q3 revenue, driven by $51.2B in AI-powered data center sales, surpassing Wall Street estimates by $2B. - Bitcoin rebounded above $90,000 following Nvidia's results, but AI bubble concerns persist with 45% of fund managers citing it as top risk. - Major investors like Peter Thiel and SoftBank have reduced Nvidia stakes, contrasting CEO Huang's "decades-lon
The Federal Reserve has revealed plans to conclude quantitative tightening (QT) by December 1,
Following the earnings release, Nvidia shares jumped 5%, lifting the broader market as the S&P 500 and Nasdaq Composite advanced 0.38% and 0.59%
Nonetheless, the rapid growth of AI remains controversial. Both regulators and investors have voiced caution: the Bank of England has highlighted potential systemic risks from AI in the financial sector, while
The Fed's move to stop QT introduces another factor to the broader economic picture. By ending the $2 trillion reduction in bonds, the central bank seeks to steady liquidity following years of contraction. This policy change, alongside Nvidia's AI leadership, indicates that markets could withstand short-term turbulence. However, with Bitcoin still trading below its $126,000 high and ongoing macroeconomic uncertainty, investors remain cautious
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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