Nvidia’s $5.5 billion charge hits stocks and crypto markets, with Bitcoin, XRP, and ADA following suit.

Nvidia’s announcement of a massive $5.5 billion charge related to U.S. sanctions on chip sales to China sent shockwaves through both the stock and cryptocurrency markets on Tuesday. The news led to a dramatic 8% drop in Nvidia’s stock price in after-hours trading, which affected investor sentiment across various sectors.

Bitcoin, which had been riding a bullish wave to reach a two-week high of $86,440, dipped to $83,600 following the news, according to CoinDesk data. Ripple’s XRP saw a 2% dip, trading at $2.08, while Cardano’s ADA took a more significant hit, dropping 4% to $0.61. The broader cryptocurrency market followed suit, with the CoinDesk 20 Index slipping by over 2%.

Cryptocurrencies associated with AI and tech also suffered sharper declines, reflecting Nvidia’s challenging financial outlook. Nvidia disclosed that its revenue would be hit by restrictions on its H20 chip sales to China, resulting in the $5.5 billion charge. This followed a wave of increased options activity, signaling growing concern among investors.

The overall technology sector took a hit as well, with Nasdaq futures falling more than 1%, signaling broader weakness in risk assets. Market attention now turns to the U.S. retail sales data for March, which is expected to show a 1.2% increase, signaling a possible recovery in consumer spending. A stronger-than-expected result could ease fears of an economic slowdown, exacerbated by global trade tensions.

Investors are also keenly awaiting Federal Reserve Chairman Jerome Powell’s speech on Wednesday at the Economic Club of Chicago. Powell’s comments will be crucial in shaping the market’s expectations on future monetary policy, particularly in light of concerns over a potential recession.

“With inflation metrics like breakeven inflation falling due to trade worries, investors are hoping the Fed will respond with rate cuts,” said analysts at Secure Digital Markets. “The trade war, especially with China, has increased uncertainty, and traders are looking for any signal that the Fed will act quickly to cushion the economy.”

Earlier this month, President Trump’s announcement of new tariffs on China and other countries added to the economic pressure, with market players closely watching any developments regarding the implementation of these tariffs.