Crypto Market Plummets Amidst AI Stock Collapse and Inflation Fears
Taipei, November 13 – The cryptocurrency market experienced a sharp downturn this morning, with Bitcoin (BTC) falling 3.96% to $71,120 in the past 24 hours, marking its lowest point in nearly 12 weeks. Ethereum (ETH) also dropped below the $2,011 level. The sell-off was triggered by a surprise announcement that Nvidia co-founder Jensen Huang had resigned as CEO, leading to a widespread collapse in U.S. AI stocks and a surge in market fear.
The cryptocurrency market continued its downward trend from the previous day in early trading on November 13th, Taipei time. Bitcoin (BTC) plummeted from a high of $74,050 to $71,120 within 24 hours, a decline of 3.96%, reaching its lowest point in almost 12 weeks. Ethereum (ETH) fell 2.4% to $2,011, with a 24-hour low of $1,983. Solana (SOL) and XRP saw declines of 2.4% and 2.1% respectively.
The immediate catalyst for this sharp decline originated in traditional markets. Nvidia co-founder Jensen Huang’s unexpected resignation as CEO and Chairman during U.S. trading hours on November 12th triggered a broad sell-off in AI-related stocks. All three major U.S. stock indices closed lower on November 12th: the Nasdaq plunged 4.6%, the S&P 500 fell 3.4%, and the Dow Jones was down 2.6%. This followed the release of U.S. October CPI data on November 11th, which showed a 0.4% month-over-month increase, 0.1 percentage points higher than the expected 0.3%. The probability of a Federal Reserve interest rate hike in December has now climbed to approximately 90%. This dual blow has caused Bitcoin to retreat sharply from its high of around $80,000 just a week ago.
The cryptocurrency market has been hit by multiple negative factors this week. The primary driver was the sudden resignation of Nvidia co-founder Jensen Huang as CEO and Chairman during U.S. trading on November 12th. This news sent AI-related stocks into a tailspin, with the Nasdaq index plummeting 4.6%. Significant liquidation of Nvidia shareholder ETF and futures positions has spread volatility into the crypto market.
On the economic front, the U.S. Bureau of Labor Statistics reported on November 11th that the October CPI rose 0.4% month-over-month, exceeding the expected 0.3%. This “hot” inflation data has led markets to anticipate an interest rate hike by the Federal Reserve at its FOMC meeting on December 8-9. CME FedWatch indicates the probability of a rate hike has risen to about 90%. A strong dollar and tightening financial conditions continue to suppress risk asset valuations.
In terms of fund flows, U.S. spot Bitcoin ETFs saw a net outflow of $1.28 billion last week, the largest since late June. BlackRock’s IBIT experienced net redemptions for the eighth consecutive trading day, cumulatively diluting passive buying pressure in the market.
Major cryptocurrencies are under pressure across the board. Solana (SOL) fell 2.4% to $81.58 in the past 24 hours, and XRP dropped 2.1% to $1.0349. Bitcoin’s price range over the last 14 days has been from a high of $80,668 (November 5th) to a low of $71,043 (November 13th), a volatility of 11.9%. Ethereum’s price range during the same period was from a high of $2,434 (November 5th) to a low of $2,002 (November 12th), a cumulative decline of 17.7%.
Based on Bitcoin’s UTC closing price of $71,460 on November 12th, the 14-day Relative Strength Index (RSI) is at 29.5, indicating oversold conditions. The closing price is below the 20-day Simple Moving Average (SMA) of $77,340, the 50-day SMA of $80,946, and the 200-day SMA of $73,137. The Moving Average Convergence Divergence (MACD) remains in a bearish configuration, with histogram bars widening compared to the previous day, signaling strengthening bearish momentum. The price is trading near the lower band of the Bollinger Bands (20,2) at $71,988. Resistance levels are at the lower Bollinger Band ($71,988), the 200-day SMA ($73,137), and the 20-day SMA ($77,340). Support is found at the 30-day low of $71,113.
With an Ethereum closing price of $2,020, the 14-day RSI is at 28.1, also in oversold territory. The price is trading below the 20-day SMA ($2,241), the 50-day SMA ($2,431), and the 200-day SMA ($2,151). The MACD is also in a bearish configuration, with histogram bars widening from the previous day. The price has fallen below the lower Bollinger Band ($2,024). Resistance levels are at the lower Bollinger Band ($2,024), the 200-day SMA ($2,151), and the 20-day SMA ($2,241). Support is at the 30-day low of $1,984.
The Fear & Greed Index from alternative.me registered 20 today, November 13th, a significant drop of 8 points from 28 the previous day, falling into the “extreme fear” zone. The index has ranged between 20-32 over the past eight days, with today marking the lowest point in that period, reflecting a sharp increase in market risk aversion. The substantial decline in the index is attributed to the combined pressures of the AI stock collapse triggered by Nvidia’s CEO resignation, the rising probability of Federal Reserve rate hikes, and ETF outflows, all of which are suppressing risk asset valuations.
