Crypto Market Dips as Nvidia’s $5.5B Hit Shakes Global Sentiment

• Bitcoin fell to $83,600, while XRP and ADA declined after Nvidia reported a $5.5B charge and an 8% stock drop.

• The market is watching retail sales data and Powell’s speech to gauge the Fed’s next move amid rising trade tensions.

The cryptocurrency market dropped late Tuesday after Nvidia reported a $5.5 billion charge due to halted chip sales to China, causing its stock to fall nearly 8% in after-hours trading. This negative sentiment spilled over into the crypto space, pulling down major coins like Bitcoin (BTC), XRP, Cardano (ADA), Ethereum (ETH), and Solana (SOL).

Bitcoin, which had earlier touched $86,440, slipped over 2% to around $83,900. Meanwhile, Ethereum fell by about 1.98% to $1,575, and Solana dropped roughly 2.99% to around $126. Further, XRP declined more than 1% to $2.08, and ADA dip 4% to $0.61 — losing recent gains as market sentiment turned negative.

The decline followed Nvidia’s confirmation that it would stop shipping its H20 chips, designed for China’s AI market, due to new U.S. export restrictions. This added pressure to an already volatile crypto market, extending broader losses.

U.S.-China Tensions Push Global Tech and Crypto Lower

Nvidia’s H20 chip, a key product for the Chinese market, was hit by new U.S. export restrictions due to national security concerns. Officials warned that the chip’s high-speed memory could help power Chinese supercomputers. Big tech firms like Tencent, Alibaba, and ByteDance had heavily invested in these chips, expecting strong AI demand.

Now, Nvidia faces a multibillion-dollar write-down this quarter tied to unused inventory, canceled deals, and supply issues. The market reacted fast — tech stocks fell, Nasdaq futures dropped over 1%, and AMD, also affected by the ban, saw its shares sink 7%. The move adds to growing fears of a deeper tech divide between the U.S. and China, which could keep impacting global markets.

Crypto Prices React to External Forces, Not Internal Weakness

With markets under pressure, attention now shifts to two key events. First, the U.S. retail sales report for March is expected to show a 1.2% increase. Second, a speech was given by Federal Reserve Chairman Jerome Powell at the Economic Club of Chicago.

A solid retail report could ease some nerves about the economy, but many traders believe it may not reflect the fast-moving developments around trade and tariffs. Powell’s remarks, meanwhile, are expected to be closely watched for any clues on interest rate changes.

“All eyes are on Powell. Markets are holding their breath,” said analysts at Secure Digital Markets in a research note. The concern is that if trade tensions keep rising, the Fed may need to cut rates sooner than expected to keep the economy stable.

Earlier this week, Fed Governor Christopher Waller said the central bank could be forced into making a quick round of rate cuts if U.S. trade policy tightens further. On April 2, President Trump announced sweeping tariffs on 180 countries — though most were paused for 90 days, China was not.

Overall, the crypto downturn was driven more by macroeconomic uncertainty than by any fundamental flaws within crypto assets. The sell-off reflected general market risk aversion sparked by Nvidia’s financial hit.

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