TLDR

MARKET RECAP → Stocks closed broadly higher today with the tech-heavy Nasdaq composite (QQQ) continuing its three-day winning streak. Bitcoin (BTC) staged a rebound, closing up almost +3% Wednesday.

NVIDIA’S HIGH-STAKES EARNINGS → ? All eyes were on Nvidia’s (NVDA) Q2 earnings report Wednesday after the closing bell. Expectations were high following blowout Q1 results… and shares are accordingly up over 200% year-to-date. The AI darling’s results could have widespread ripple effects as the $1 trillion company has contributed significantly to the broader market’s rise this year.

A DEEP DIVE INTO BITCOIN’S FLASH CRASH → ? Bitcoin’s (BTC) wild ride: From a deep slumber to a nosedive recently to $25k. What happened? We summarize a deep dive from glassnode to provide some food for thought for all you BTC “HODLers” out there.

Sean Horgan

Head of Investor Relations @ MoneyLion

$shorgan

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Today’s S&P 500 Heatmap

Source: finviz.com

Today’s Top News

NVDA’S HIGH-STAKES EARNINGS

? Nvidia (NVDA) shares moved over +5% higher after the AI-darling reported Q2 earnings after the market closed today. Analysts expected a whopping 300% year-over-year profit surge and over 60% revenue growth.

? Despite being the S&P 500’s (VOO) star performer this year, Nvidia faced a shaky July and a 2% dip in August. Market jitters, anyone?

? Goldman Sachs (GS) highlighted Nvidia’s global popularity among investors, hinting at the chip giant’s potential to influence AI bigwigs like AMD (AMD) and Taiwan Semiconductor. Watch out, world!

Source: shutterstock

DEEP DIVE: BITCOIN FLASH CRASH

? Bitcoin (BTC) took a nosedive recently, marking its largest single-day selloff of the year, plunging below $25k. The culprits? A futures market deleveraging and a whopping 88.3% of short-term holders now nursing unrealized losses.

? Options markets, once in a deep slumber with all-time low volatility, were jolted awake. Implied volatility doubled for short-dated contracts, but interestingly, open interest remained stable.

? Futures traders weren’t so lucky. Over $25 billion in perpetual futures contracts were wiped out in a day, reminiscent of the FTX collapse, making it the most dramatic deleveraging since Luna’s 2022 tumble.

Want to learn more? Check out Glassnode’s video report here.