Nvidia's recent stock plunge has widespread effects on both the tech and crypto markets.
Effects of Nvidia's Decline
Nvidia's stock plummeted by 17%, leading to a $600 billion loss in the tech sector. This event also negatively affected the crypto market, temporarily lowering Bitcoin's value below $100,000.
Global Liquidity Strengthens Bitcoin
Despite current upheavals, Bitcoin remains resilient thanks to global liquidity. According to Markus Thielen of 10x Research, Bitcoin is not directly linked to the tech sector and is sustained by a $38 trillion global liquidity pool.
Role of Bitcoin ETFs as Market Awaits Rate Cuts
Bitcoin ETFs have surged following positive statements from the Federal Reserve regarding potential future rate cuts. Such policies enhance investor confidence and strengthen Bitcoin's position.
Despite current stock market disturbances, long-term forecasts for cryptocurrencies remain positive due to global liquidity and active Bitcoin ETF support.
