Wall Street convinced that market is slowing, Bitcoin drops

Nvidia’s results this week weren’t actually that bad, but due to persistent inflation concerns and growing anxiety about AI’s potential ROI (return on investment), Wall Street traders are convinced that a slowdown (aka a temporary decline) is underway. Nvidia’s share price fell further on Friday.

Inflation concerns are the main concern for investors in Europe, where we can see that Eastern Europe is especially troubling.

Meanwhile, Bitcoin continues to perform well overall, although technically it’s crucial that the largest digital currency ends the week above $114,000 to avoid a possible further drop. At the time of writing, however, Bitcoin is trading at $108,000 after falling yesterday in correlation with the Nasdaq technology market. With all this bad news, we’re already wondering if Bitcoin can stay above $100,000 in September (normally a very bearish month).

Inflation

As announced earlier this week, Nvidia’s results were very important for Wall Street following Sam Altman’s (CEO of OpenAI) profit warning. Nvidia in essence delivered good results, but as Wall Street expects nothing less than “fantastic” from CEO Jensen Huang’s company, they were actually disappointed.

Many investment banks have therefore lowered their expectations for the third quarter.

In Europe meanwhile, there is a growing gap in inflation levels between countries in the “West” and those in the former “East.”

Inflation is trending downward, particularly in Romania, Bulgaria Croatia, and Estonia (where inflation levels have risen to anywhere between 4 and 8%).

This means investors will likely adjust their investment portfolio and build in some sort of safety, which in turn will be bad news for Bitcoin in September.

Depending on what the macro results show in the coming weeks, I expect a (slight) decline rather than an increase for the month of September.