Nvidia Stock Plummets, Wiping Out Market Value Similar to Ethereum’s Market Cap
Nvidia faced a significant setback as its shares plummeted by 9.5% in a single day, resulting in a staggering $253 billion loss in market value. This sharp decline marked the largest one-day market cap drop for an SPX stock, as highlighted by Michael Brown, Senior Research Strategist at Pepperstone FX. To put this into perspective, the magnitude of this drop is almost equivalent to the entire market capitalization of Ethereum, standing at $287 billion and ranking as the 38th largest asset globally by market cap. Despite Nvidia reporting robust earnings, the company now finds itself over 20% below its all-time high.
Meanwhile, Bitcoin’s value continues to decline, but it is currently consolidating just above the $1 trillion market cap threshold. To reclaim a $1 trillion valuation, Bitcoin’s price would need to hover around $51,000.
The global financial markets also witnessed a wave of sell-offs, with Japan’s Nikkei index experiencing a roughly 4% decline and oil prices dropping by 5%. This turbulence has added to market uncertainty, particularly with the Federal Reserve’s upcoming meeting scheduled in just two weeks on Sept. 18. Market sentiment appears divided, with a 60/40 probability leaning towards a 25 basis points rate cut, according to the CME Fed watch tool. Investors are closely monitoring the Federal Reserve’s next steps, recognizing the potential significant impact it could have on both traditional stock markets and the cryptocurrency space in the near future.
The images displayed in the article further illustrate the market dynamics, with one showing BTCUSD values and another presenting Target Rate Probabilities, both sourced from CME Fed watch tool.
As the market landscape remains volatile and unpredictable, the upcoming Federal Reserve meeting holds substantial importance for market participants. The decisions made by the Federal Reserve could have far-reaching effects on various asset classes, including stocks and cryptocurrencies. Investors are advised to stay vigilant and informed in these uncertain times to navigate the evolving financial environment effectively.
