Bitcoin Dips Amid Nvidia’s $5.5B Charge and Market Uncertainty

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Bitcoin dropped more than 2% on Tuesday amidst a broader market downturn sparked by Nvidia’s announcement of a $5.5 billion charge related to U.S. export restrictions on its chips sold to China. The chipmaker’s stock plunged over 8% in after-hours trading following the news, setting off a ripple effect across risk assets, including cryptocurrencies.

The fallout came after the U.S. government blocked Nvidia’s sale of its H20 AI chips to China, a decision that is expected to significantly impact Nvidia’s quarterly earnings. Markets, which had previously been buoyed by enthusiasm over artificial intelligence, responded sharply to the development, showing how interlinked equities and crypto markets have become.

Crypto Market Trends

As Bitcoin fell to around $83,600—down from a session high of $86,440—other major cryptocurrencies followed suit:

  • XRP dropped over 3%.
  • Cardano (ADA) fell by more than 4%.
  • The CoinDesk 20 Index saw a decline exceeding 2%.

Digital assets with ties to artificial intelligence experienced the steepest losses, highlighting the crypto market’s increasing dependence on developments in both tech and traditional equity markets. Nvidia’s slump served as a reminder of the interconnectedness between digital and conventional financial spheres.

Market Sentiment and Outlook

Looking ahead, investor focus turns to key macroeconomic events including:

  1. Wednesday’s U.S. retail sales report.
  2. A speech from Federal Reserve Chair Jerome Powell.

Both are anticipated to provide crucial insight into the state of the economy and future monetary policy. Adding to uncertainty are renewed U.S.-China trade tensions following recent tariff escalations—factors that continue to fuel volatility across asset classes.

As traders digest these developments, all eyes remain on external signals that could influence the direction of the crypto markets in the short term.

For more detailed coverage on this topic, see the original article on CoinDesk.

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