Cryptocurrency analysis firm QCP Capital has published a new report detailing the recent performance of Bitcoin (BTC) and Ethereum (ETH), as well as the general state of the cryptocurrency market.
QCP Capital: Today's Nvidia Earnings Report May Have a Great Impact on Cryptocurrencies
According to the report, while BTC reached new highs yesterday, touching $53,000, ETH followed suit and climbed to $3,033. Funding rates on altcoins have been particularly high during this rise, with perpetual swaps paying out annual rates of up to 40%. The BTC and ETH forward curves were also very high, yielding up to 17% at some points on the curve.
The report suggests that such speculative rotation into altcoins is a mid-cycle phenomenon. According to the report, funding at these levels is often difficult to sustain, which means that after such a strong rise, there may be a pullback in prices.
One major event today that could trigger a broader correction, according to the analytics company, is Nvidia's earnings report, which will be released after US closing time. As a key component of the S&P500 Index, Nvidia's performance could set the tone for U.S. stocks in the near term.
Nvidia is currently trading at a P/E ratio of 90x, and Q4 earnings expectations have been adjusted higher recently. At these valuation multiples and high earnings expectations, any disappointment could result in selling. This will definitely put pressure on US stocks and crypto prices, according to the analysis company.
*This is not investment advice.
