The crypto market faced significant turbulence today, with major tokens experiencing sharp declines. Bitcoin (BTC) fell to $56,000, while several altcoins, including Ethereum (ETH), Solana (SOL), and XRP, followed suit, reflecting a broader bearish trend. The downturn coincided with the U.S. Department of Justice’s (DOJ) investigation into Nvidia, sparking concerns across the digital asset space.
Bitcoin and Major Altcoins See Sharp Declines
Bitcoin (BTC) suffered a notable drop, slipping to $56,000, marking a significant decrease from recent levels. Ethereum (ETH), Solana (SOL), and XRP also faced considerable losses, with ETH plunging to $2,373 and SOL falling to $128. The sudden dip reflects growing concerns among investors about the potential ripple effects of the DOJ’s investigation into Nvidia, a leading AI company suspected of antitrust violations affecting Nvidia’s performance.
DOJ’s Nvidia Probe Sparks Market Uncertainty
The DOJ’s investigation into Nvidia has created a wave of uncertainty across financial markets. Subpoenas have been issued to Nvidia and other companies as part of an inquiry into potential antitrust breaches. This development not only impacted Nvidia’s stock but also contributed to a 4.60% decline in the global crypto market cap, with the S&P 500 also dropping by 2.12%.
Despite the bearish trend, the overall crypto market volume surged by 15.14%, reaching $65.59 billion. This increase in trading activity suggests that while many investors are offloading their assets, others may be taking advantage of lower prices to enter the market, perhaps even looking into stocks like Nvidia.
Bitcoin’s Dominance Rises Amid Market Downturn
As Bitcoin’s price fell to $56,698, the leading cryptocurrency’s market dominance saw a slight increase, rising by 0.08% to 56.40%. This shift indicates that while altcoins are experiencing heavier losses, Bitcoin remains a relatively stable asset in the eyes of many investors. However, concerns over future price action persist, especially with the Bank of Japan (BOJ) signalling potential interest rate hikes in the near future. Amidst all these changes, investors are carefully watching companies like Nvidia for market cues.
Ethereum and Solana Also Hit Hard
Ethereum’s price retreated by 6% over the past 24 hours, landing at $2,373. This decline is in line with a reported $47.40 million outflow from spot Ethereum ETFs as of September 3. Meanwhile, Solana (SOL) saw a 6% dip, trading at $128. The downturn in these altcoins reflects broader market sentiment, influenced by the DOJ’s actions against Nvidia and the overall economic climate.
XRP and Meme Coins Feel the Pressure
XRP wasn’t spared from the market downturn, dropping by 2% to $0.5527. Meme coins, which have been popular among retail investors, also mirrored the bearish trend. Dogecoin (DOGE) fell by 3%, Shiba Inu (SHIB) by 4%, and other meme tokens like PEPE, WIF, and FLOKI saw declines ranging from 5% to 7%. Even these tokens were not immune to market trends influenced by the Nvidia investigation.
Top Gainers and Losers
Despite the overall market slump, a few cryptocurrencies managed to post gains. Bitcoin SV (BSV) rose by nearly 3%, trading at $45.08, while SUI gained roughly 2%, reaching $0.8018. On the flip side, Fantom (FTM) and Bittensor (TAO) were among the hardest hit, with FTM crashing by 11% to $0.3823 and TAO dropping by 11% to $251. Investors in these cryptocurrencies continue to watch Nvidia’s market moves closely.
Market Sentiment Remains Cautious
The ongoing volatility has kept investors on edge, with hourly charts showing continued price fluctuations. Bitcoin slipped by 0.28% within an hour, and Ethereum followed with a 0.47% decline, fueling speculation about the market’s direction in the coming days. Nvidia, being a significant player in the tech industry, has been a focal point of these market speculations.
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