TLDR
- Bitcoin surged above $80,000, gaining around 5.5% in 24 hours despite a Fed rate hike and failed crypto legislation
- Crypto stocks Strategy, Coinbase, and Robinhood rallied 12%, 10%, and 8% respectively
- Nvidia’s CEO said the company could sell twice as many chips in 2027 as in 2026
- The 10-year U.S. Treasury yield hit 5%, pushing most S&P 500 sectors lower
- The Senate failed to advance the Clarity Act, leaving crypto regulation to the SEC and CFTC
Bitcoin is trading above $80,000, crypto stocks are surging, Nvidia’s CEO is signaling massive AI chip demand, and rising Treasury yields are squeezing equities. Here is what moved markets this week.
Bitcoin and Crypto Stocks Surge
Bitcoin climbed roughly 5.5% over 24 hours to around $80,940. The move came despite the Federal Reserve raising interest rates by 25 basis points to a range of 3.75% to 4.00%, and the Senate failing to pass a key crypto regulation bill.
The rate hike had been widely expected, which helped limit the negative market reaction. Bitcoin’s gains lifted the broader crypto market too, with investors rotating back into digital assets.
Crypto-related stocks followed suit. Strategy rose around 12%, Coinbase gained about 10%, and Robinhood advanced roughly 8%.
Strategy holds a large amount of Bitcoin on its balance sheet, making it especially sensitive to price moves. Coinbase benefits directly when crypto trading volumes pick up. All three had sold off earlier in the week on rate fears and the legislative setback, making the reversal swift.
Crypto Regulation Shifts to the SEC and CFTC
The Senate failed this week to advance the Clarity Act, a bill designed to create a clearer regulatory framework for digital assets and define the roles of the SEC and CFTC.
The failure does not mean regulation has stopped. Industry participants told CoinDesk they expect both agencies to continue setting rules even without new legislation passed by Congress.
For now, that leaves the crypto industry operating without a comprehensive legal framework, with regulators expected to fill the gap through existing authority.
Nvidia CEO Points to Doubling Chip Sales by 2027
Nvidia CEO Jensen Huang said the company could sell approximately twice as many chips in 2027 as it will in 2026.
Estimates cited by Barron’s suggest Nvidia could sell around 5.09 million AI GPUs in 2026, along with tens of thousands of complete AI server racks. Growth is expected to come from its next-generation Vera Rubin architecture, CPUs, networking products, and other AI infrastructure.
Earlier this year, Nvidia said the revenue opportunity for its AI chips could reach at least $1 trillion through 2027, reflecting the scale of capital flowing into AI computing.
Treasury Yields at 5% Pressure Stocks
The 10-year U.S. Treasury yield returned to around 5% on Friday, making bonds more competitive against stocks and pushing equity valuations lower.
Nine of the S&P 500’s 11 sectors fell during the session. Markets were also dealing with quarterly triple witching, the simultaneous expiration of stock options, index options, and futures contracts, which can add to volatility.
Higher yields hit growth stocks hardest because they raise the rate used to discount future earnings, making those earnings worth less in today’s terms.
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