Nvidia’s 8% drop in shares due to U.S. chip export bans has led to declines in Bitcoin, XRP, and ADA prices. The cryptocurrency market is monitoring upcoming U.S. retail sales data and Federal Reserve Chairman Jerome Powell’s speech for economic cues. Analysts anticipate implications of trade tensions and potential Federal Reserve interest rate cuts based on these developments.
Nvidia experienced a significant drop in its share price, falling 8% following a U.S. ban on the sale of its H20 chips to China, which negatively influenced both equity and cryptocurrency markets. Consequently, Bitcoin declined to $83,600 after reaching a two-week high of $86,440 earlier in the day. Similarly, XRP fell over 2% to $2.08, and ADA slipped 4% to $0.61, while the CoinDesk 20 Index saw a decrease of more than 2%.
The downturn in the cryptocurrency market was exacerbated as AI-related coins suffered further declines. Nvidia’s shares dropped to $89.10 after announcing a pending $5.5 billion write-down due to regulatory changes affecting chip exports. This development followed unusual trading activity indicating a potential market downturn. Additionally, Nasdaq futures fell over 1%, suggesting a broader risk aversion within financial markets.
Upcoming economic data is anticipated, particularly the U.S. retail sales report for March, expected to show a 1.2% increase in consumer spending, up from February’s 0.2% rise. A positive report could alleviate recession concerns associated with trade tensions, particularly between the U.S. and China. Conversely, market sentiment may overlook this data if it appears outdated given recent escalations in trade disputes.
Attention also turns to Federal Reserve Chairman Jerome Powell’s speech scheduled for Wednesday at the Economic Club of Chicago, where discussions on the U.S. economic outlook are anticipated. Analysts suggest that traders are keenly awaiting hints regarding potential interest rate cuts as trade tensions rise. Recent comments from Fed Governor Christopher Waller indicated that the bank may need to respond quickly with rate cuts if tariffs are reintroduced, signalling concerns about future economic stability.
