Bitcoin Updates: Federal Reserve Pauses QT While Nvidia's AI Boom Sparks Bubble Concerns

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Bitcoin Updates: Federal Reserve Pauses QT While Nvidia's AI Boom Sparks Bubble Concerns

Bitget-RWA2025/11/22 15:34

By:Bitget-RWA

- 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,

a step that may boost liquidity

in the markets after a prolonged period of shrinking its balance sheet. This announcement, together with

Nvidia

Corp.'s (NVDA) unprecedented third-quarter results and Bitcoin's rally past $90,000, has reignited market optimism even as worries about an AI-fueled bubble persist.

Nvidia, now the most valuable publicly traded company,

posted fiscal third-quarter sales of $57.01 billion

, surpassing Wall Street projections by almost $2 billion. The company's data center division,

which enabled AI solutions

for major players such as Microsoft and Amazon,

generated $51.2 billion in revenue

—a significant jump from earlier quarters. CEO Jensen Huang pointed to "extraordinary" demand for the Blackwell architecture and fully booked cloud GPUs, while CFO Colette Kress noted that CUDA-based accelerators are extending hardware utility and reinforcing Nvidia's leadership in AI infrastructure

as detailed in financial statements

. The firm also

forecasted $65 billion in revenue for the fourth quarter

, well ahead of analyst expectations of $62 billion.

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%

based on market statistics

. Nvidia's results served as a gauge for investor risk appetite, with

Bitcoin

surging past $90,000

within hours of the announcement. The digital asset had previously slipped below $88,000 amid AI bubble concerns, but Nvidia's strong performance eased those fears,

driving AI-related tokens such as TAO and RNDR up by 4%-5%

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

45% of asset managers polled by Bank of America

identified an AI bubble as the primary threat to markets. High-profile investors including Peter Thiel and SoftBank have reduced their holdings in Nvidia,

fueling debates over long-term viability

. Despite these concerns, Huang

rejected the notion of a bubble

, describing the expansion of AI infrastructure as "a foundational shift in computing" that will unfold over decades.

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

as per market assessments

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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