Bitcoin Price Targets Reach $50K Amid Nvidia Crash Impacting Nikkei and Gold

September 04, 2024 11:20 PM AEST | By Team Kalkine Media

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Bitcoin Price Targets Reach $50K Amid Nvidia Crash Impacting Nikkei and Gold — Image source: Shutterstock

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Bitcoin (BTC) has experienced significant declines, approaching monthly lows of under $56,000 as of September 4, following a broader downturn in risk assets linked to the U.S. tech sector.

BTC/USD dropped to a low of $55,602 on Bitstamp, a level not seen since August 8, according to data from Cointelegraph Markets Pro and TradingView. This decline comes after Bitcoin had previously rebounded by 40% from an August slump, only to face renewed pressure.

The downturn in Bitcoin’s price is partly attributed to the recent turmoil surrounding tech giant Nvidia. A subpoena from the U.S. The Department of Justice caused Nvidia’s stock to plummet, which in turn affected broader risk assets, including {Bitcoin} (BTC). Additionally, gold, which had recently reached a record high above $2,500, fell by up to 1.3% on September 3.

Japan's Nikkei 225 also saw a sharp drop of 4.2% during the Asia trading session on September 4, compounding the negative sentiment in global markets and adding further strain to Bitcoin and other cryptocurrencies.

Market commentators noted that September has started with a significant shift towards risk aversion. The Kobeissi Letter highlighted a widespread "rush to the sidelines" as investors seek safety amid ongoing market volatility.

Popular trader CrypNuevo pointed out that Bitcoin’s current price action is filling in previous downside candle wicks, with short-term movements possibly extending toward $51,500. Fellow trader Jelle observed that Bitcoin is testing key support levels, which could signal a possible rebound.

Despite the downturn, trading firm QCP Capital reported that the market is entering a phase of heightened volatility, as indicated by their Volatility Momentum Indicator (VMI). This signal, while not directional, suggests that increased market fluctuations could be expected.

The volatility has also led to significant liquidations in the crypto market, with total liquidations of $200 million recorded over a 24-hour period, according to CoinGlass data.

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