Bitcoin (BTC) Dips Alongside Stock Futures as Nvidia Corp. NVDA Shares Tumble

Cryptocurrencies edged lower on Tuesday, extending declines from the prior session as Nvidia shares tumbled after being informed by the U.S. government that it will need a license to export chips to China.

What Happened: Bitcoin rose to a high of $86,429.35 in early trading before a sharp decline to $83,100 overnight. Ethereum charted a similar trajectory, plunging to an intraday low of $1,577.05 after a morning spike.

In the past 24 hours, 97,198 traders were liquidated, with total liquidations at $208.63 million. More than $136 million in bullish bets was erased due to the pullback.

However, about $700 million in shorts risked liquidation if Bitcoin rebounds to $86,850.

Bitcoin’s Open Interest also plunged by 6.54% in the last 24 hours. Meanwhile, its Long/Short Ratio on Binance rose above 1, suggesting that futures traders were buying its latest dip.

Top Gainers (24 Hours)

The global cryptocurrency market cap now stands at $2.63 trillion, showing a 1.45% decrease in the last 24 hours.

Stock futures edged lower on Tuesday night. The Dow Jones Industrial Average Futures fell 112 points, or 0.28%, to 41,317 in the final hour of trading. Futures tied to the S&P 500 dipped 0.76%, while Nasdaq 100 Futures lost 1.33%.

The sell-offs came after artificial intelligence darling Nvidia Corp. (NASDAQ:NVDA) said in a regulatory filing that the government contacted it last week to let it know it will need a license to sell H20 chips to China. The shares slid 6.33% in after-hours trading.

President Donald Trump’s back-and-forth on tariffs has injected major volatility into markets this month. The Dow and S&P 500 are down 3.86% and 4.19%, respectively, since April began.

Amid concerns about inflation and economic slowdown, investors will focus on March's retail sales report, slated for a Wednesday release.

Analyst Notes: Popular blockchain analytics firm CryptoQuant noted that the 30-day moving average of Bitcoin’s Market Value to Realized Value indicator was at a six-month low, indicating an “extreme fear” sentiment and exhaustion of selling pressure.

“Historically, these zones have served as psychological and technical support, marking points of correction or resumption of the uptrend.”

Bitcoin MVRV MA30d reaches its lowest level in 6 months

Although market sentiment is anchored in fear, the recent cyclical behavior of the MVRV suggests a possible recovery opportunity in the BTC price.

Read more ⬇️https://t.co/Gfyat1rhc0#crypto #MVRV #BTC

— CryptoQuant (@cryptoquant_) April 24, 2024

Widely followed cryptocurrency analyst Michaël van de Poppe highlighted the surge in global money supply.

Historically, changes in M2 money supply have correlated with Bitcoin’s movements.

If the correlation remains, then I assume that we’ll see Bitcoin rally to an ATH in this quarter. This would also imply a rise in CNH/USD, a fall in Yields, a further fall in Gold, less DXY and a rise in stock markets. #Bitcoin https://t.co/8K2qB0L6lR

— Michaël van de Poppe (@MvdPoppe) April 24, 2024

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