Crypto Market Declines After Nvidia's $5.5B Charge

Cryptocurrency and equity markets dropped sharply after Nvidia disclosed a $5.5 billion charge linked to new U.S. restrictions on exporting its H20 AI chips to China, causing its stock to fall as much as 8% in after-hours trading. The negative sentiment from Nvidia’s announcement, which reflects escalating tech trade tensions between the U.S. and China, spilled over into major cryptocurrencies like Bitcoin, Ethereum, XRP, and Cardano, all of which saw notable declines. The broader tech sell-off included substantial liquidations in crypto futures, with over $200 million in bullish bets erased. Market participants are now closely watching upcoming U.S. retail sales data and Federal Reserve Chair Jerome Powell’s speech for signals on economic direction and monetary policy. Despite the sell-off, some analysts note that investor positioning could set the stage for future rebounds if sentiment improves. Overall, the Nvidia-related export restrictions and ongoing trade uncertainty have intensified volatility and risk aversion across global financial markets.