NVIDIA Chip Ban May Soon Spark Crypto Market Weakness

The crypto market's anticipation of U.S. Fed rate cuts as a potential catalyst for risk asset inflows has been overshadowed by China's abrupt ban on NVIDIA's AI chips. Beijing's directive for tech firms to cancel existing orders and shift to domestic alternatives sent NVIDIA shares down 1.6% in pre-market trading, with Ripple effects expected across digital asset markets.

At stake are NVIDIA's high-end RTX Pro 6000D server GPUs—priced at nearly 50,000 yuan in China—which power critical AI training and data center operations. The ban accelerates the Sino-American tech supremacy battle, particularly in artificial intelligence infrastructure development.

Market analysts note the unusual correlation between semiconductor stocks and crypto assets has strengthened in recent quarters, as both sectors compete for institutional capital allocations. The immediate impact appears concentrated in AI-adjacent tokens and mining-related assets, though broader contagion risks remain elevated during current low-liquidity conditions.