Nvidia and Bitcoin in the spotlight with impressive performance
During 2024, both Nvidia and Bitcoin showcased exceptional performance, surpassing the broader market and significantly outshining the S&P 500’s 27% increase.
Nvidia witnessed a remarkable surge of 179.4%, propelled by its leading position in AI, data centers, and semiconductor technologies, with the demand for GPUs continuing to exceed supply.
Bitcoin, with a growth of 139.8%, saw two surges: one following the approval of Bitcoin spot ETFs and another after President-elect Trump’s favorable view on cryptocurrencies, which included the appointment of a crypto-friendly SEC leader.
This shift towards more favorable regulations, along with Fed Chair Jerome Powell’s comparison of Bitcoin to gold, instilled confidence among investors.
Evaluating risks
Bitcoin is currently facing increased volatility as its recent rally attracts speculative leveraging. Data from November 2024 indicated a 30% rise in futures open interest, heightening the risks of liquidation during market downturns.
Moreover, Trump’s proposed Bitcoin Reserve Act could encounter resistance in Congress, leading to potential delays in implementation and negatively impacting investor confidence. Regulatory clarity remains uncertain, with unresolved concerns regarding anti-money laundering enforcement.