Morning Note: Nvidia’s $1 Trillion Data Centre Bet, SEC Crypto Rules, US PMI Data

Nvidia’s $1 Trillion Data Centre Bet and Its Market Impact

At its GTC 2025 event last week, Nvidia CEO Jensen Huang projected that data centre investments would reach $1 trillion by 2028, accelerating his previous forecast for 2030. This bullish outlook has strengthened the case for Nvidia investors to capitalise on the company's stock, which remains attractively valued. As Nvidia maintains its dominance in the GPU market and experiences a sharp rise in data centre sales, the industry’s rapid growth could also strengthen the position of its closest competitors.

(NVDA Share Price Daily Chart, Source: Trading View)

From a technical analysis standpoint, the price is currently retesting the 113 – 116 swap zone. A breakdown below this level could signal further declines, potentially leading to a retest of the lower support zone at 92 – 95. On the other hand, if the price manages to hold above this area and finds support, it could rebound and move upward, retesting the resistance zone at 128 – 131.

SEC Task Force Considers New Rules for Crypto Tokens

In the crypto space, the U.S. Securities and Exchange Commission’s crypto task force held its first public meeting with industry experts on Friday, discussing how securities laws may apply to digital assets as the Trump administration seeks to revamp cryptocurrency regulations. Led by Republican SEC Commissioner Hester Peirce, the task force is responsible for drafting rules and guidance for the sector.

A key topic of debate was whether crypto tokens require a distinct regulatory framework separate from traditional securities oversight. The crypto industry has long been at odds with regulators over the classification of digital assets, with many arguing that tokens function more like commodities than securities. If classified as securities, crypto firms would be required to register with the SEC and adhere to investor disclosure requirements.

(Bitcoin Price Daily Chart, Source: Trading View)

From a technical analysis perspective, the Bitcoin price has encountered rejection due to bearish pressure, forming a double-top candlestick pattern in early February 2025. Currently, it is approaching the downward trend line. If it can break above this level, it could potentially continue surging upward, retesting the swap zone of 90,200 – 92,000. Conversely, if it gets rejected at the trend line, bearish momentum might regain control, pushing the price downward to retest the support zone of 79,200 – 77,500.

Investors Await U.S. Flash composite PMI reading

The U.S. Flash Composite PMI index stood at 51.6 in February, with a slight decline to 51.5 expected for March, indicating a marginal slowdown in economic activity. This data is set to be released on 24 March at 13:45 GMT. This slight dip may be attributed to factors such as slower business expansion due to weaker demand or supply chain constraints, the impact of restrictive monetary policy as the Federal Reserve maintains higher interest rates, and cautious consumer and business sentiment amid inflationary pressures and global uncertainties.

(U.S Dollar Index Daily Chart, Source: Trading View)

From a technical analysis perspective, the overall trend of the U.S. Dollar Index has been bullish since the end of September 2024, as indicated by the formation of higher highs and higher lows. However, the index began to decline in early February 2025, marked by a significant double-top candlestick pattern.

Recently, the index found support within the 103.00 – 103.20 zone, where it formed a significant double-bottom candlestick pattern before rebounding. It is now approaching the 104.00 – 104.20 swap zone. A decisive close above this level could signal a continuation of bullish momentum, potentially driving the index higher.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.