Crypto Analyst Outlines The Top Five Factors Every Trader Should Look Out For
In cryptocurrency trading, there are various things every trader must know to be successful. This is important because of the high volatility in the crypto market and the industry's ability to be affected by various factors, such as news, lawsuits, and even influencer comments.
On August 20, Gareth Soloway outlined five purportedly crucial things every trader must take seriously this week to have a profitable trading week.
Following Soloway's tweet, several crypto pundits expressed their views.
Nvidia's Q2 Earnings Report and Fed Chair's SpeechGareth Soloway has been a renowned cryptocurrency trader and analyst for over two decades. He took to X (former Twitter), informing traders to watch out for some key events that will take place this week.
Nvidia ($NVDA) Earnings report happening on Wednesday, August 23, is a crucial event that can surge the broader stock market value even higher.
Nvidia, the leading chipmaking company that provides processors essential for developing AI technologies, is releasing its second-quarter earnings result by Wednesday's EOD.
Soloway highlighted that the firm's valuation is ridiculous but justified by bulls based on the impressive growth the AI industry is introducing.
He noted that the $1 trillion valuation will greatly impact the stock market after Microsoft $MSFT, and Apple Inc. $AAPL experienced a sharp decline in its second-quarter earnings.
Another event is the Fed Reserve Chairperson Jerome Powell's speech from Jackson Hole, Wyoming, on Friday, August 25.
According to Soloway, last week's meeting was extremely hawkish, yields recorded a multi-decade peak, and China's economy plunged.
This would be the Fed Chair's best opportunity to direct the markets into the September Fed meeting.
10-Year Yields, Japan, China, And BitcoinAlso, Gareth Soloway noted the 10 Year Yield, which recorded 4.33% last Thursday, signifying a double-top from last October when it recorded the same level.
He further noted that the stock market was about 20% lower, which might put investors in a daunting situation if the yields were to break out. In addition, Soloway stressed that the higher the yields, the more money is lost in the stock market.
Japan and China are two other important players in the global market. Japan is the largest buyer of US treasuries and is currently the country with the largest debts globally.
As inflation hits Japan, they are beginning to loosen their yield curve control, which may hurt US debts.
On the other hand, China is the second biggest economy worldwide but currently facing a serious financial crisis. Soloway notes that China has the authority to print more money at will, unlike the United States, leading to the country's deflation which will be a gain to the US markets.
Lastly, the crypto trader pointed out the world's largest crypto asset, Bitcoin, as it is currently trading in its next prominent technical support level, above the $25,000 level.
Top 5 Things Every Trader Should Be Watching This Week...
1. #NVIDIA $NVDA Earnings Wed (After Market Close)
This stock has become the golden child of the stock market and the risk on environment. Valuation is insane but justified by bulls based on the incredible growth #AI is...- Gareth Soloway (@GarethSoloway) August 20, 2023
If Bitcoin breaks below the 25k level, it will head for the 20k level. But if it holds above it for the next month, it will likely retest the 28k level.
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