Crypto Market Loses $130 Billion After Nvidia Shock

With U.S. artificial intelligence (AI) related stocks shaken by the resignation of Nvidia CEO Jensen Huang, the global virtual asset market capitalization decreased by more than $130 billion in a single day. As major virtual assets fell together, leveraged positions betting on price increases were forcibly liquidated one after another, widening the decline.

According to CoinMarketCap at 4 PM on Nov. 13, the global virtual asset market capitalization was tallied at $2.32 trillion, down 5.41% from 24 hours ago. About $130 billion decreased in a single day.

Bitcoin was traded at $69,119, down 5.98% from the previous day. Ethereum recorded $1,942.55, dropping 5.00%. Both assets were pushed down to their lowest levels since August. BNB and Solana (SOL) also fell by 5.69% and 3.02%, respectively.

Bloomberg analyzed, “Strengthened prospects of additional interest rate hikes by the U.S. Federal Reserve (Fed) and growing concerns over tighter regulations next year due to the Democratic Party’s control of Congress dealt a direct blow to the virtual asset market.”

Rich Rosenblum, co-founder of virtual asset market maker GSR, explained, “The volatility of AI-related stocks, the strong dollar, and the management change at Nvidia pressured risky assets.” Previously on Nov. 12 (local time), Nvidia’s stock price fell 4.3% in the U.S. stock market on the news of CEO Jensen Huang’s resignation.