QCP Capital: The market is closely following Nvidia's earnings report tonight. If US stocks decline, it will increase the risks in the crypto market.

On August 27, QCP Capital stated in an official post that President Trump seems determined to form a more closely cooperating team at the Fed to push policies towards a dovish tilt. Currently, Bowman, Waller, and Mela are generally seen as Trump's supporters. If Governor Cook is replaced, even without appointments for the two vice-chair positions and the next chair, the pro-Trump voices on the board will increase to four. Last week's Jackson Hole meeting redefined the Fed's risk balance. Officials expressed greater concerns about the slowdown in the job market and pointed to downward revisions in US Non-farm Payrolls (NFP). In our view, the labor market backdrop is now more prominent than the risks of accelerating inflation. This paves the way for a rate cut in September - although a non-farm and CPI data will be released before the FOMC meeting. In addition, the AI sector bellwether Nvidia will announce its earnings after the market close today. The market will closely watch Nvidia's performance and guidance to find signs of whether the revenue growth brought by AI spending remains resilient. The recent weakness in the crypto assets market seems related to the actual sell pressure from Large Investors. If the US stock market declines from here, TradFi allocators' confidence in Bitcoin may face challenges, and a new round of risks is rising.