#Circle与Nvidia财报在即 Circle and Nvidia's earnings reports have a significant impact on the crypto world:

Circle Earnings Impact

1. Confidence in the Stablecoin Market: Circle’s Q3 earnings show total revenue (including reserve interest income) of $740 million, up 66% year-over-year; net profit of $214 million, up 202% year-over-year; USDC circulation reaching $73.7 billion, up 108% year-over-year. This indicates that the stablecoin market continues to grow, and USDC, as a representative of compliant stablecoins, reflects sustained market demand for regulated stablecoins. This boosts confidence in stablecoins as a bridge between traditional finance and the crypto world.
2. Profit Model and Risks: Circle’s revenue mainly comes from interest income on USDC reserves, accounting for about 96%. While current performance is strong, there are concerns that its profit model is overly dependent on interest rate cycles. As the Federal Reserve cuts rates, reserve yields decline, potentially compressing profits. This serves as a reminder to crypto investors that the profitability sustainability of stablecoin projects faces challenges and that macroeconomic policies can impact these projects.
3. Competition and Regulatory Pressure: Circle faces competition from rivals like Tether (USDT), while global stablecoin legislation accelerates and regulatory requirements increase. This encourages crypto companies to prioritize compliance, pushing the industry toward standardization. It also highlights fierce competition, requiring companies to continuously improve their competitiveness to maintain market share.
4. Diversification Strategies: Circle is exploring diversified revenue streams through new initiatives like the ARC blockchain, Circle Payments Network (CPN), and USYC tokenized money market funds. This provides a direction for crypto companies to transform by expanding business boundaries, reducing reliance on a single revenue source, and enhancing resilience against risks.

NVIDIA Earnings Impact

1. Strengthening the Link Between Computing Power and Crypto: As a giant in AI chips, NVIDIA’s earnings show strong growth in revenue and profit, reflecting a booming AI industry. In crypto, computing power is core to PoW (Proof of Work) mechanisms. NVIDIA’s high-performance chips play a crucial role in cryptocurrency mining. The positive earnings reinforce the “computing power equals money” consensus, further solidifying the price foundation of PoW cryptocurrencies like BTC, as rising mining costs indirectly boost crypto values.
2. Accelerating AI and Crypto Integration: NVIDIA’s AI advancements open up more possibilities for combining AI and crypto. For example, AI can optimize trading strategies and risk prediction in cryptocurrencies. Its excellent earnings attract more capital to AI, indirectly promoting the development of AI + crypto sectors, increasing market attention and investment willingness in AI crypto projects.
3. Market Sentiment and Confidence: As a leading tech company, NVIDIA’s financial performance significantly influences overall market sentiment. Strong earnings typically boost market confidence and drive tech stocks higher. Stable or rising US stocks are a prerequisite for crypto market stability. When tech stocks perform well, investor risk appetite increases, leading to more funds flowing into high-risk crypto assets and pushing up cryptocurrency prices.
4. Connecting Traditional Capital and Web3: NVIDIA’s earnings success demonstrates the commercial value of AI infrastructure, attracting traditional capital. This encourages more traditional financial institutions and enterprises to explore Web3 integration through investments or collaborations, bringing more funds and resources into the crypto space, and promoting infrastructure development and ecosystem growth.

Everyone should closely monitor relevant news, ensuring that trading decisions are well-founded and justified.