1. Why did NVIDIA stock decline 5.5%?
NVIDIA shares fell 5.5% to USD 168.47 amid broader technology-sector weakness, renewed interest rate concerns and reports involving CEO Jensen Huang. The stock declined approximately 10% since Friday and around 18% during the month.
2. How is NVIDIA's stock performance affecting Bitcoin and other cryptocurrencies?
NVIDIA's decline reflects broader investor caution toward technology stocks and other risk-sensitive investments, including cryptocurrencies. However, Bitcoin and Ethereum prices are also influenced by inflation, Federal Reserve policy, market liquidity and leveraged trading activity.
3. Why did Bitcoin fall below USD 73,000?
Bitcoin dropped to USD 72,689.38 after October's US Consumer Price Index increased 0.4%, exceeding market expectations. The cryptocurrency subsequently recovered to USD 73,733.71, although it remained down 1.39% over the previous 24 hours.
4. How much was liquidated in the cryptocurrency market?
According to CoinGlass, cryptocurrency liquidations exceeded USD 632 million over 24 hours, with long positions accounting for more than USD 511 million. Bitcoin liquidations surpassed USD 169 million, while Ethereum liquidations approached USD 240 million.
5. How could another Federal Reserve interest rate hike affect Bitcoin?
Higher interest rates can strengthen the US dollar, increase borrowing costs and reduce demand for risk-sensitive assets such as Bitcoin and Ethereum. Following October's inflation report, the reported probability of a December 25-basis-point rate increase increased from 77% to 85%.
