Global stock markets stabilize and rebound: Bitcoin returns to $92,500 in fluctuations, NVIDIA's earnings report becomes the focus.

According to Bloomberg, on November 19, 2025, global stock markets showed signs of stabilization after experiencing a loss of approximately $1.6 trillion in market capitalization. The MSCI Asia-Pacific index rose slightly by 0.2% after three consecutive days of decline. Bitcoin stabilized around $92,500 after briefly falling below $90,000 on Tuesday, indicating that risk assets are beginning to seek a balance point after a severe sell-off.

Market focus is now shifting to Nvidia's earnings report due on Wednesday, which will test the sentiment at the core of the AI boom and could determine the next direction of the rebound since April. Despite signs of stability, investors remain cautious, with the Cboe Volatility Index breaking above 24, reaching its highest level in a month.

Global Market Trends and Capital Flow

Asian stock markets rose slightly as investors weighed the impact of recent sell-offs, with traders watching to see if the market can stabilize after approximately $1.6 trillion was wiped from global equities on Tuesday. The MSCI Asia-Pacific index climbed 0.2% after three consecutive days of losses. This rebound occurred after Bloomberg's World Exchange Market Capitalization Index reduced its total market capitalization to $144.7 trillion. U.S. stock futures rose slightly by 0.2%, following declines in the S&P 500 and Nasdaq 100 indices.

The decline of the world's largest technology companies on Tuesday dragged global stock indices to a one-month low, with Wall Street questioning the bubble valuations and whether AI spending would yield meaningful returns. Vey-Sern Ling, Managing Director of Union Bancaire Privee, stated, “Investors remain nervous, valuations are high, and uncertainty surrounds U.S. employment and Federal Reserve interest rates as we approach year-end gains, so most people are hoping to avoid risks.” This sentiment reflects the cautious attitude of the market near years of high points.

The Correlation Between Bitcoin and Risk Assets

Bitcoin stabilized around $92,500 after briefly falling below $90,000 during a risk asset dumping on Tuesday. This price movement reflects the ongoing correlation between cryptocurrencies and traditional risk assets, despite claims that Bitcoin should operate as an uncorrelated asset. From a market structure perspective, Bitcoin continues to react to global liquidity conditions and changes in risk appetite, with its high beta characteristics becoming more pronounced during periods of market stress.

Bob Diamond, former CEO of Barclays and current head of investment firm Atlas Merchant Capital, stated that the recent turmoil in global markets resembles a “healthy correction” as investors struggle to assess the factors behind technological changes. He noted, “We have seen risk assets being repriced. In my view, this is a healthy correction and not something that has turned into a bear market.” This assessment offers some comfort to the market, although volatility remains high.

Key Market Indicators and Data

Global market capitalization: Bloomberg World Exchange Market Capitalization Index has dropped to $144.7 trillion

Volatility: Cboe Volatility Index breaks 24, reaching a one-month high

S&P 500: Down over 3% this month, volatility returns

Government Bond Yield: The 10-year government bond yield remains at 4.12%

Employment data: As of the week ending October 18, the total number of unemployment claims is 232,000.

Federal Reserve Policies and Interest Rate Expectations

Another major concern for investors is whether the Federal Reserve will cut interest rates next month. Traders are lacking confidence in a further reduction of borrowing costs, with swap contracts now suggesting a probability of less than 50% for action in December. Several policymakers have recently warned against cutting rates citing inflation risks, although Federal Reserve Governor Christopher Waller reiterated his support for a rate cut.

On Wednesday, government bonds were virtually unchanged, with the 10-year yield remaining at 4.12%, after falling three basis points on Tuesday. Employment market data provided some direction, with a total of 232,000 people applying for unemployment benefits in the week ending October 18, according to historical data from the Labor Department's website. According to ADP research, companies cut an average of 2,500 jobs per week over the four weeks ending November 1. The U.S. employment report for September is scheduled to be released on Thursday after a long delay.

Focus on Tech Stocks and Attention on NVIDIA's Earnings Report

Returning to Nvidia, according to Strategas's Ryan Grabinski, the company has grown larger than the combined total of the energy, materials, and real estate sectors, and depending on the date, it even surpasses the composite weight that includes the utilities sector. It is also larger than the entire industrial sector.

Grabinski pointed out: “The results could have a ripple effect through the U.S. and international markets. Although broader expectations for AI have cooled in recent weeks, this report has the potential to turn sentiment back to optimism. That is to say, the threshold is undoubtedly very high right now.” This assessment reflects Nvidia's systemic importance in the current market, and its earnings report could become a catalyst for broader risk assets.

Macroeconomic Background and Market Sentiment

Recent market fluctuations have occurred against a complex macroeconomic backdrop. On one hand, inflationary pressures persist, limiting the central bank's ability to provide monetary policy support. On the other hand, signs of economic growth are mixed; some indicators show a slowdown while others remain resilient. This environment poses challenges for risk assets, as they typically rely on loose monetary conditions to support valuations.

From the market sentiment perspective, investors are shifting from a purely “risk-on” mentality to a more nuanced approach, balancing growth and valuation. Tech stocks, in particular, are under scrutiny as high expectations leave room for disappointment. However, the transformative potential of AI continues to support the sector, creating a tension between optimism and caution, which is reflected in increased market volatility.

Cryptocurrency Market Positioning and Prospects

In the current environment, cryptocurrencies continue to seek their place in the traditional financial ecosystem. On one hand, they offer potential tools for hedging against inflation and currency devaluation. On the other hand, their high volatility and risk characteristics make them sensitive to macro developments. Bitcoin's recent price movements illustrate this dual nature, as it reacts to global risk sentiment and liquidity expectations.

From a technical analysis perspective, Bitcoin's ability to stay above $90,000 is seen as a key short-term factor. If this level holds as a support, it may lay the groundwork for a move to higher levels. However, a fall below this could trigger further dumping, especially if broader risk assets continue to perform poorly. Market participants are closely monitoring fund flows and regulatory developments to gauge potential changes in sentiment.

As the global market struggles to find a balance point after evaporating $1.6 trillion, the stabilization of Bitcoin and Nvidia's upcoming earnings report together paint a picture of risk assets standing at a crossroads—investors are unwilling to give up on the prospects of a technological revolution, yet cannot ignore the ever-widening gap between valuations and reality. This contradictory psychology may be the essence of a healthy correction: not the end of a bull market, but a necessary process for the market to find its next solid foundation.

FAQ

What is the current state of the global stock market?

After experiencing a evaporation of about 1.6 trillion USD in market capitalization, signs of stabilization are emerging. The MSCI Asia-Pacific index rose slightly by 0.2%, and U.S. stock futures have increased slightly, but the volatility index has reached a one-month high, indicating that investors remain tense.

What level is Bitcoin currently trading at?

After briefly falling below $90,000 during Tuesday's risk asset sell-off, Bitcoin has stabilized around $92,500, indicating that the market is seeking a new equilibrium after the extreme fluctuations.

What are the changes in the expectations for the Federal Reserve's interest rate cuts?

Traders lack confidence in a rate cut in December, with swap contracts suggesting a probability of less than 50%. Several Federal Reserve officials have warned about inflation risks, although Governor Waller still supports a rate cut.

Why is Nvidia's financial report so important?

NVIDIA has now surpassed the combined total of the energy, materials, and real estate sectors, and its financial report is seen as a barometer of the AI boom, potentially generating a ripple effect through U.S. and international markets that will determine the next direction of risk assets.

What is the current market volatility?

The Cboe Volatility Index broke above 24, surpassing the key level of 20 that raised concerns among traders, reaching a one-month high, while the S&P 500 fell over 3% this month, indicating a significant return of volatility.