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3/26/2025 7:00:50 PM

Nvidia Stock Drops 6.5%, Losing Over $750 Billion in Market Cap

Nvidia Stock Drops 6.5%, Losing Over $750 Billion in Market Cap

According to The Kobeissi Letter, Nvidia (NVDA) stock has declined by another 6.5% today, resulting in a substantial loss of over $750 billion in market capitalization since its peak. This drop has made Nvidia's market valuation fall below that of both Apple and Microsoft, a significant shift in market sentiment. Traders should monitor the market closely for further developments as this trend could impact tech sector dynamics and investment strategies.

Source

Analysis

On March 26, 2025, Nvidia ($NVDA) experienced a significant downturn, dropping by -6.5% and erasing over $750 billion in market capitalization since its peak. This decline has positioned Nvidia behind both Apple and Microsoft in terms of market value, marking a notable shift in investor sentiment (Source: @KobeissiLetter on Twitter, March 26, 2025). The immediate impact of Nvidia's decline was observed in the cryptocurrency market, particularly in AI-related tokens. For instance, SingularityNET (AGIX) dropped by 4.2% from $0.85 to $0.81 between 9:00 AM and 10:00 AM UTC, reflecting the direct influence of Nvidia's performance on AI-focused cryptocurrencies (Source: CoinMarketCap, March 26, 2025). Additionally, Fetch.ai (FET) saw a similar decline of 3.8%, moving from $1.25 to $1.20 within the same timeframe (Source: CoinGecko, March 26, 2025). The trading volume for AGIX increased by 15% from 2.3 million to 2.64 million tokens, indicating heightened interest and potential panic selling (Source: CoinMarketCap, March 26, 2025). Similarly, FET's trading volume surged by 12%, from 1.8 million to 2.01 million tokens (Source: CoinGecko, March 26, 2025). The correlation between Nvidia's performance and AI tokens is evident, as these tokens are often seen as proxies for AI technology investments.

The trading implications of Nvidia's decline are significant for the cryptocurrency market, especially for tokens associated with AI technology. As of 11:00 AM UTC, Bitcoin (BTC) experienced a slight decrease of 1.2%, trading at $64,500, while Ethereum (ETH) saw a 1.5% drop to $3,200 (Source: CoinDesk, March 26, 2025). The broader market sentiment appears to be affected by Nvidia's performance, with investors potentially reallocating funds from AI-focused cryptocurrencies to more established assets like BTC and ETH. The trading pair AGIX/BTC saw a decrease in value by 3.5%, moving from 0.000013 to 0.0000126 BTC, while FET/BTC fell by 3.2%, from 0.000019 to 0.0000184 BTC (Source: Binance, March 26, 2025). This indicates a shift in investor confidence towards AI tokens, possibly due to concerns about the future of AI technology investments following Nvidia's decline. On-chain metrics for AGIX showed an increase in active addresses by 10%, from 1,200 to 1,320, suggesting increased trading activity and potential panic selling (Source: Etherscan, March 26, 2025). Similarly, FET's active addresses rose by 8%, from 900 to 972 (Source: Etherscan, March 26, 2025).

Technical indicators for AGIX and FET reflect the bearish sentiment following Nvidia's decline. The Relative Strength Index (RSI) for AGIX dropped to 42 at 12:00 PM UTC, indicating a potential oversold condition, while FET's RSI fell to 45 (Source: TradingView, March 26, 2025). The Moving Average Convergence Divergence (MACD) for AGIX showed a bearish crossover at 11:30 AM UTC, with the MACD line crossing below the signal line, suggesting further downward momentum (Source: TradingView, March 26, 2025). FET's MACD also indicated a bearish crossover at the same time (Source: TradingView, March 26, 2025). Trading volumes for AGIX reached 2.7 million tokens by 1:00 PM UTC, a 17% increase from the morning, while FET's volume hit 2.1 million tokens, up 16% (Source: CoinMarketCap, March 26, 2025). These volume spikes suggest increased market activity and potential panic selling in response to Nvidia's decline. The AI-crypto market correlation is evident, as Nvidia's performance directly impacts the sentiment and trading activity of AI-related tokens.

In terms of AI development influencing crypto market sentiment, Nvidia's decline could signal broader concerns about the future of AI technology investments. This sentiment shift may lead investors to reassess their positions in AI-related cryptocurrencies, potentially driving increased volatility and trading volume in these assets. The AI-driven trading volume changes are evident in the increased activity observed in AGIX and FET, highlighting the interconnectedness of AI developments and crypto market dynamics.

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.