Nvidia’s $5.5B Charge Triggers Market Selloff, Bitcoin, XRP, and ADA Among the Casualties
Nvidia’s announcement of a $5.5 billion charge on its quarterly earnings report caused a cascade of negative sentiment across both stock and cryptocurrency markets on Tuesday. The tech giant revealed that sanctions related to its chip sales to China would have a severe impact on its revenue, sending Nvidia’s stock down nearly 8% in after-hours trading.
The news rippled through the cryptocurrency space, with Bitcoin (BTC) dropping below $82,000, a significant pullback from its previous rally. Ripple’s XRP and Cardano’s ADA followed suit, losing 2.5% and 4% respectively, trading at $2.05 and $0.58. The broader cryptocurrency market, including the CoinDesk 20 Index, slipped by nearly 2%, reflecting investor unease as concerns over global trade and regulatory uncertainty grew.
Nvidia’s massive charge stems from the U.S. government’s decision to block its chip sales to China, particularly affecting the company’s H20 chips. The $5.5 billion hit represents a direct consequence of these restrictions and has raised doubts about Nvidia’s near-term growth prospects. The company’s stock, which had been riding high, faltered, and crypto markets, often correlated with broader tech market moves, felt the pressure.
The downturn wasn’t limited to Nvidia alone; the broader tech sector followed suit. Nasdaq futures fell by over 1% in early trading, highlighting broader risk aversion. Investors are now focusing on upcoming economic data, with U.S. retail sales for March set to be released soon. A stronger-than-expected reading could signal resilience in consumer spending, while weaker numbers might underscore the economic challenges ahead.
Investor attention is also on the Federal Reserve’s upcoming policy outlook. With Jerome Powell scheduled to speak later this week, there is speculation that the central bank might adjust its stance on interest rates to counteract rising risks from both trade tensions and slowing growth.
“Given the unpredictable nature of trade relations and the increasing regulatory pressures on tech firms, the broader markets are showing signs of stress,” said economists at Global Macro Insights. “The crypto market is reflecting that caution as traders move to reduce exposure to high-risk assets, especially after news like Nvidia’s.”
As the global economic landscape continues to shift, investors are bracing for potential further volatility, keeping a close eye on both stock and crypto markets as they navigate the turbulence.
