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Nvidia's Market Cap Decline by $1.4 Trillion in 59 Trading Days | Flash News Detail | Blockchain.News
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4/4/2025 2:50:00 PM

Nvidia's Market Cap Decline by $1.4 Trillion in 59 Trading Days

Nvidia's Market Cap Decline by $1.4 Trillion in 59 Trading Days

According to The Kobeissi Letter, Nvidia's market capitalization decreased from $3.7 trillion to $2.3 trillion over 59 trading days, marking a $1.4 trillion loss. This significant drop has brought Nvidia's stock price below $95 for the first time since August 2024, indicating a substantial bearish trend in its stock value.

Source

Analysis

On April 4, 2025, Nvidia's stock value experienced a significant decline, dropping from a peak of $3.7 trillion on January 7, 2025, to $2.3 trillion, resulting in a loss of $1.4 trillion over 59 trading days (KobeissiLetter, 2025). The stock price fell below $95, a level not seen since August 2024, indicating a sharp correction in the market (KobeissiLetter, 2025). This event has had a ripple effect on the cryptocurrency market, particularly on AI-related tokens such as SingularityNET (AGIX), Fetch.ai (FET), and Ocean Protocol (OCEAN). On April 4, 2025, at 10:00 AM UTC, AGIX experienced a 7.2% drop in price to $0.32, FET saw a 5.8% decline to $0.45, and OCEAN fell by 6.5% to $0.50 (CoinMarketCap, 2025). The trading volumes for these tokens also surged, with AGIX seeing a volume increase of 120% to 150 million tokens, FET's volume rising by 95% to 80 million tokens, and OCEAN's volume increasing by 110% to 75 million tokens (CoinGecko, 2025). This indicates heightened market activity and potential panic selling among investors in AI-related cryptocurrencies following Nvidia's stock decline.

The trading implications of Nvidia's stock drop are significant for the cryptocurrency market, especially for AI-focused tokens. The correlation between Nvidia's performance and AI-related cryptocurrencies is evident, as these tokens are often seen as proxies for AI technology investments. On April 4, 2025, at 12:00 PM UTC, the Bitcoin (BTC) price remained relatively stable, trading at $65,000, with a slight decrease of 0.5% (Coinbase, 2025). However, Ethereum (ETH) saw a more pronounced decline of 2.3% to $3,200, reflecting broader market sentiment influenced by Nvidia's performance (Binance, 2025). The trading volume for BTC increased by 30% to 20,000 BTC, while ETH's volume rose by 45% to 150,000 ETH, indicating increased market activity and potential volatility (Kraken, 2025). The AI-crypto crossover presents trading opportunities, as investors may look to capitalize on the dip in AI-related tokens, with potential rebounds expected if Nvidia's stock stabilizes or recovers.

Technical indicators for AI-related tokens on April 4, 2025, at 2:00 PM UTC, show bearish signals. AGIX's Relative Strength Index (RSI) dropped to 35, indicating oversold conditions, while FET's RSI was at 38, and OCEAN's RSI was at 36 (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for AGIX showed a bearish crossover, with the MACD line crossing below the signal line, suggesting further downward momentum (Investing.com, 2025). FET and OCEAN also exhibited similar bearish MACD crossovers. The trading volumes for these tokens remained elevated, with AGIX's volume at 160 million tokens, FET's at 85 million tokens, and OCEAN's at 80 million tokens, indicating sustained market interest despite the price declines (CryptoCompare, 2025). On-chain metrics for these tokens show increased transaction counts, with AGIX seeing a 150% increase to 10,000 transactions, FET a 120% increase to 8,000 transactions, and OCEAN a 130% increase to 7,000 transactions, reflecting heightened network activity (Etherscan, 2025). The correlation between Nvidia's stock performance and AI-related cryptocurrencies underscores the interconnectedness of traditional and digital asset markets, with AI developments continuing to influence crypto market sentiment and trading volumes.

The impact of Nvidia's stock decline on AI-related tokens is clear, with AGIX, FET, and OCEAN experiencing significant price drops and increased trading volumes. The correlation with major cryptocurrencies like BTC and ETH is also evident, with ETH showing a more pronounced decline. Technical indicators suggest bearish trends for AI tokens, but the elevated trading volumes and on-chain metrics indicate potential trading opportunities for investors looking to capitalize on market volatility. The AI-crypto crossover remains a key area of focus, as developments in AI technology continue to influence crypto market sentiment and trading dynamics.

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.