Bitcoin (BTC), XRP, and Cardano (ADA) saw renewed selling pressure late Wednesday as tech giant Nvidia’s 8% after-hours plunge triggered risk-off sentiment across equities and the crypto market. The drop followed news that the U.S. government banned Nvidia’s H20 chip sales to China, forcing the company to report a $5.5 billion charge for Q1.

Nvidia’s Ban Fallout Sends Shockwaves Through Markets

Nvidia shares fell to $89.10, down 8% in after-hours trading, after disclosing the massive charge in a regulatory filing. The U.S. decision to block H20 chip exports to China — part of the broader Trump administration’s tariff escalation — is expected to hurt Nvidia’s China-driven revenue.

Crypto markets, already on edge amid macro uncertainty, responded swiftly:

Bitcoin (BTC) dropped to $83,600, down from its two-week high of $86,440 earlier in the day.

XRP declined over 2% to $2.08.

Cardano (ADA) plunged 4% to $0.61.

The CoinDesk 20 Index lost over 2%, reflecting broad-based weakness.

Crypto tokens tied to artificial intelligence saw steeper losses, correlating with Nvidia’s sharp decline.

Nasdaq Futures Slide as Traders Eye U.S. Retail Data

The negative sentiment spilled into equity futures, with Nasdaq 100 futures falling over 1%, signaling a risk-off session ahead for Thursday. Market participants are now closely watching for two major catalysts:

U.S. Retail Sales Report (March)

Expected increase: +1.2%

Previous month: +0.2%

A stronger-than-expected report may ease recession fears, though some analysts warn it could be dismissed as backward-looking in light of this month’s trade war escalation.

Fed Chair Jerome Powell Speech

Powell is set to speak at the Economic Club of Chicago, with markets hoping for hints of potential rate cuts to offset tariff-related economic risks.

“Markets are holding their breath,” said Secure Digital Markets, adding that Powell’s tone could be pivotal for short-term risk sentiment.

Disinflation Pressures Build as Tariff Risks Rise

Amid rising trade war concerns, forward-looking inflation indicators such as breakevens are falling, suggesting disinflationary pressure. This could give the Federal Reserve room to cut interest rates if economic conditions deteriorate.

Fed Governor Christopher Waller earlier this week warned that the central bank may need to make a series of rapid rate cuts if Trump’s tariffs push the economy closer to a recession.

On April 2, Trump introduced sweeping tariffs on 180 nations, but later paused the levies for most countries, excluding China, where rates now stand at 125%.