Bitcoin rebounded 4% from a key range under $90,000, outperforming US equities on Tuesday. Tech stocks slid ahead of Nvidia’s pivotal Q3 earnings, which could determine the next phase of the AI trade. The Coinbase premium gap plunged to negative $114, pointing to waning institutional demand, which may keep BTC range-bound in the short term.

Bitcoin staged a sharp rebound on Nov. 18, rising 4% from an intraday low of $89,300 to trade as high as $93,700 as BTC rallied from a key order block between $91,500 and $88,400. The bounce came as risk assets wobbled, briefly putting BTC in the unusual position of outperforming US equities. Stocks slid again on Tuesday, with the Dow falling as much as 1.2%, the S&P 500 dropped 1.1%, and the Nasdaq plunged 1.5%.

The volatility comes at a crucial moment for markets with Nvidia’s results widely viewed as a potential breakout or bubble-check for the AI trade that has dominated the year. Nvidia is expected to post a 56% year-over-year revenue jump to $54.92 billion for the latest quarter, well below the triple-digit growth rates it delivered earlier in the cycle. Traders are positioning for upside, with Bitcoin’s rebound suggesting speculative risk-taking ahead of Nvidia’s earnings.

While Bitcoin’s rebound could lift market sentiment, onchain data suggested the recovery may not be as strong as it appears. The Coinbase premium gap has plunged to -$114.5 on Nov. 17, one of its lowest readings since Feb. 25. A persistently negative premium suggests the current market is influenced more by reactive traders who are quick to chase upside and faster to sell on dips.

Read more at Cointelegraph: BTC Jumps 4% as Stocks Slide Ahead of Nvidia Earnings