Bitcoin (BTC), and other cryptocurrencies, are marching higher on Nov. 20 after the latest financial results from chipmaker Nvidia (NVDA) have reassured investors and traders.
The price of Bitcoin is up 3% and above $91,000 U.S. in early morning trading after falling as low as $89,000 U.S. in the previous trading session.
Ethereum (ETH), the second largest crypto after Bitcoin, is also up 3% and back trading above the key support level of $3,000 U.S. per digital token.
Smaller cryptocurrencies such as Solana (SOL) and Dogecoin (DOGE) are up 7% and 5%, respectively.
The gains are welcome news after cryptocurrencies fell into their worst correction since 2017, with Bitcoin down more than 30% and Ethereum falling more than 40% from recent highs.
Analysts say Nvidia’s strong third-quarter financial results have reignited the trade in artificial intelligence (A.I.) stocks and lifted the entire stock market.
The chipmaker reported that its sales rose 62% year-over-year in Q3, while its profits increased 65% as demand for A.I. microchips and processors accelerate.
Nvidia, the largest publicly traded company with a market capitalization of $4.5 trillion U.S., is seen as a bellwether for technology stocks, the A.I. boom, and risk assets that include crypto.
Since mid-October, cryptocurrencies had been in distress as investors turned away from riskier investments and grew more cautious.
Leading into Nvidia’s Q3 print, spot Bitcoin exchange-traded funds (ETFs) experienced record redemptions and capital outflows as investors moved money to the sidelines.
While crypto prices are now moving higher once again, some analysts are urging caution, saying that it’s too early to say if the recovery will hold.
Bitcoin is down 2% on the year and currently trading at $91,700 U.S.
