Bitcoin, XRP, and ADA Fall After Nvidia Announces $5.5B Charge, Shaking Investor Confidence

Shares of Nvidia plummeted 8% after the U.S. imposed restrictions on its chip sales to China, sending ripples across the stock and crypto markets.

Nvidia’s stock price took a severe hit in after-hours trading on Tuesday, falling 8% after the company revealed a $5.5 billion charge related to a new U.S. ban on selling its H20 chips to China. This development had a broader impact on investor sentiment, affecting both traditional equities and cryptocurrencies.

Bitcoin, which had previously hit a two-week high of $86,440, saw a drop to $83,600, according to CoinDesk data. XRP followed suit, declining 2% to $2.08, and Cardano’s ADA dropped 4% to $0.61. The overall crypto market, as measured by the CoinDesk 20 Index, fell by more than 2%.

In particular, AI-focused cryptocurrencies experienced sharper losses, mirroring Nvidia’s steep decline. Nvidia’s stock slid 8% to $89.10 after announcing that it would take a $5.5 billion write-down in its fiscal first quarter due to the ban on chip exports. The warning followed a day of heightened options activity that hinted at a potential market downturn.

The broader tech market also showed signs of weakness, with Nasdaq futures falling over 1%, suggesting that risk assets were under pressure. The market’s next key focus is the U.S. retail sales report for March, set to be released on Wednesday. Economists expect a 1.2% increase in consumer spending, a significant improvement from the previous month’s 0.2% growth. A stronger-than-expected report could help ease recession concerns fueled by the trade tensions with China and other nations.

Investors will also be closely watching Federal Reserve Chairman Jerome Powell’s address at the Economic Club of Chicago on Wednesday, where he will provide his economic outlook. “The market is on edge ahead of Powell’s speech,” said Secure Digital Markets in a Tuesday research note. “The ongoing trade war and fears of a recession are leading traders to look for any signs that the Fed may need to act more quickly on rate cuts.”

With inflation measures like breakeven inflation falling amid trade concerns, the Fed might gain more room to maneuver with rate cuts, potentially providing a lifeline for the economy.

Earlier in the week, Federal Reserve Governor Christopher Waller warned that the central bank could be forced into “bad news” rate cuts if President Trump brings back tariffs. Trump had announced sweeping tariffs on 180 countries in early April but suspended most of them, except for those on China, for 90 days.