Crypto Market Tumbles on Nvidia-Led Profit Taking… Will Bitcoin Hold the $67,000 Support Level?

▲ Nvidia and Bitcoin/ChatGPT-generated image ©

A wave of tech stock sell-offs triggered by Nvidia has swept into the cryptocurrency market, pushing Bitcoin down to the $67,000 range. Risk-off sentiment that began on Wall Street appears to be exerting downward pressure across the broader digital asset market.

As of 7:04 a.m. KST on the 27th, data from CoinMarketCap shows that the total global cryptocurrency market capitalization fell 3.03% from the previous day to $2.32 trillion. The Fear & Greed Index, which reflects overall investor sentiment, stood at 16, remaining in the typical “Extreme Fear” zone.

Bitcoin (BTC), the market bellwether, was trading at $67,457.65, down 2.23% over the past 24 hours. Losses among altcoins were even steeper. Ethereum (ETH) dropped 3.79% to $2,030.57, while XRP plunged 5.65% to $1.39. Other major market-cap coins, including Solana (SOL, -4.56%), Dogecoin (DOGE, -8.33%), and Cardano (ADA, -7.91%), also saw broad declines.

The synchronized downturn in virtual assets mirrors the sharp drop in technology stocks on Wall Street. On the 26th (local time), the tech-heavy Nasdaq index fell 1.18% to close at 22,878.38 on the New York Stock Exchange. This came despite AI leader Nvidia reporting robust fourth-quarter earnings of $68.1 billion in revenue, up 73% year-over-year, as investors engaged in profit-taking in a classic “buy the rumor, sell the news” move.

Nvidia’s share price decline triggered a chain reaction of sell-offs in semiconductor and AI hardware stocks, including AMD and Intel, which had already been facing valuation concerns. The strong correction centered on tech stocks rapidly chilled investor sentiment in the cryptocurrency market, where correlation with traditional financial markets has deepened.

The short-term direction of the crypto market will likely depend on macroeconomic liquidity conditions and whether big tech stocks stabilize. According to the CME FedWatch Tool, the probability of a rate freeze in March stands at 96%, making it difficult to expect an immediate liquidity-driven rally fueled by rate-cut hopes. As a result, Bitcoin is expected to experience heightened volatility, testing support around the $67,000 level until concerns over an AI sector peak and broad risk-asset profit-taking triggered by Nvidia’s earnings subside.

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