Bitcoin regained momentum on Thursday as the cryptocurrency climbed back above the $80,000 level, helped by a broader rally in US equities following stronger-than-expected Nvidia earnings.
BTC/USD reached an intraday high of about $80,808 around the Wall Street open, giving buyers another opportunity to establish $80,000 as a potential support level after recent volatility.
The move came as investors digested a powerful earnings performance from Nvidia and prepared for a closely watched speech from Federal Reserve Chair Kevin Warsh at the Jackson Hole economic symposium.
Nvidia Delivers a Major Boost to Risk Assets
The immediate catalyst for the market recovery was Nvidia’s latest earnings report.
The technology giant reported second-quarter earnings of $96.2 billion, exceeding expectations by almost $4 billion.
The result triggered a sharp reaction in US markets, with Nvidia shares jumping more than 9% during Thursday trading.
The company‘s market value also increased by more than $400 billion, while the Nasdaq Composite was trading around 1% higher.
The scale of the rally underlined Nvidia’s growing influence over investor sentiment surrounding artificial intelligence and technology stocks.
The strength in equities also provided a more supportive environment for risk-sensitive assets such as Bitcoin.
Crypto Traders Watch the Stock Market Closely
Bitcoin’s recovery came as investors continued to respond to the improving tone across US financial markets.
The cryptocurrency has increasingly traded alongside broader risk assets during periods when investors become more comfortable taking exposure to volatile investments.
Nvidia’s results therefore offered a fresh catalyst for buyers attempting to push BTC through nearby resistance.
However, Bitcoin remains at a technically important point, with traders watching whether the cryptocurrency can maintain its position above $80,000 rather than briefly reclaiming the level before another pullback.
Jackson Hole Speech Could Set the Next Direction
Attention is now shifting from corporate earnings to monetary policy.
The Jackson Hole economic symposium is underway, with markets preparing for Fed Chair Kevin Warsh’s keynote speech on Friday.
Investors are particularly interested in what Warsh could signal about the future direction of US interest rates.
The outlook has remained uncertain amid mixed inflation readings and fluctuations in government bond yields.
Nationwide chief US economist Kathy Bostjancic said the speech could be particularly significant because of rising long-term interest rates and uncertainty surrounding inflation and the Federal Reserve’s future policy response.
Any indication that monetary policy could become more supportive for financial markets could potentially benefit Bitcoin.
Conversely, a hawkish message could put renewed pressure on risk assets.
Bitcoin Faces a Crucial Resistance Zone
Despite the latest rebound, Bitcoin still has a major technical hurdle ahead.
Market analysis has identified significant sell-side liquidity extending toward approximately $86,000.
This concentration of potential selling has created resistance as buyers attempt to extend the recovery.
The immediate level being watched is around $82,000.
Analyst David Eng said the liquidity wall above Bitcoin had begun to weaken, suggesting that a decisive move through $82,000 could leave the cryptocurrency with a clearer path toward higher levels.
According to the analysis, a sustained break above $82,000 could open the way toward $85,000 and beyond.
August Options Expiry Adds Another Risk Factor
Bitcoin traders are also preparing for a major derivatives event on Friday.
Around $6.58 billion worth of Bitcoin options, equivalent to approximately 81,700 BTC, are scheduled to expire on Deribit.
Large options expiries can create additional volatility because contracts reaching maturity can prompt traders to adjust positions, hedge exposure or execute transactions around important strike prices.
This can sometimes cause Bitcoin’s price to gravitate toward heavily traded strike levels before or around the expiry.
Liquidations Rise as Bitcoin Rebounds
The renewed volatility has already been reflected in the derivatives market.
Crypto liquidations climbed to roughly $417 million over a 24-hour period after Bitcoin buyers pushed into an area containing substantial sell-side liquidity.
Such liquidations occur when leveraged positions are forcibly closed, and a sharp increase can amplify movements in either direction.
For Bitcoin bulls, the challenge is therefore not simply reclaiming $80,000 but holding above nearby resistance while avoiding a reversal triggered by leveraged positioning.
Traders Face a High-Stakes 48 Hours
Bitcoin’s next major move could depend on a combination of technical resistance, derivatives positioning and signals from the Federal Reserve.
A strong break above $82,000 would strengthen the bullish case and potentially clear a route toward $85,000 or higher.
Failure to maintain the recovery, however, could leave the market vulnerable to another test of lower support levels.
The options expiry and Warsh’s Jackson Hole address arriving within a short period could make Friday particularly volatile for both Bitcoin and broader financial markets.
What Happens Next?
Bitcoin traders will be watching three developments closely: whether BTC can establish $80,000 as firm support, whether it can overcome resistance around $82,000 and what the Federal Reserve chair signals about monetary policy.
The $6.58 billion options expiry could add another layer of price movement, particularly around major strike levels.
At the same time, continued strength in Nvidia and the wider technology sector could help maintain the risk-on environment supporting cryptocurrencies.
Summary
Bitcoin climbed back above $80,000 on Thursday as Nvidia’s stronger-than-expected earnings triggered a major rally in US technology stocks and improved sentiment across risk assets.
The cryptocurrency reached approximately $80,808, but traders still face resistance between current levels and the $86,000 area.
Analysts are particularly focused on whether Bitcoin can break above $82,000, which could potentially open a path toward $85,000 and higher.
With the Federal Reserve’s Jackson Hole speech and billions of dollars in Bitcoin options expiring on the same day, Friday could prove crucial for determining whether Bitcoin’s latest rebound develops into a broader rally or encounters another wave of selling.
