Bitcoin recovered to $75,000 and the Nasdaq Composite gained 2.6% on Monday, as falling oil prices and tech-sector buying offset concerns over Nvidia's 6% share price drop.
Nvidia shares fell about 6% to $170.24 on Monday, a level last seen March 31, after reports that CEO Jensen Huang may have been the target of a Chinese intelligence effort. Analyst Dan Ives warned the episode creates a lasting overhang and will spark congressional inquiries, and former SEC chair Gary Gensler said the board faces tough choices over the internal investigation. The stock did rebound to $179.92 intraday, which limits confidence in further downside.
Bitcoin rebounded above $75,000 after touching an 11-week low near $73,500 on Sunday, helped by the tech-stock rally and falling oil prices. However, trading material remains in a narrow range between the 21-week SMA ($73,078) and 50-week SMA ($75,492), and analysts flag a possible test of the 200-week SMA at $67,755. Elevated liquidations of $1.2 billion in 24 hours also leave room for further downside.
The tech-heavy Nasdaq Composite gained up to 2.6% in the first hour of Monday's session, brushing off the Nvidia controversy as investors bought the lows on tech stocks. Falling oil prices (WTI near its lowest since Sep. 1) supported equities, with economist Robin Brooks noting oil's negative correlation to risk assets. The move has already happened, so the index may need fresh drivers to extend it.
WTI crude fell to $86.19 per barrel on Monday, its lowest since September 1, before recovering to around $88.20. Falling oil lifted risk assets, with Robin Brooks noting gold, Bitcoin and the S&P 500's negative correlation to oil since the September attack on Saudi Arabia's East-West Pipeline. Continued softness in crude would keep supporting equities and crypto at oil's expense.
Bitcoin climbed back above $75,000 on Monday after touching 11-week lows of $73,500. Meanwhile, the Nasdaq Composite rallied 2.6% in early trading as investors bought the dip in tech stocks, brushing off a 6% decline in Nvidia shares following reports of a Chinese intelligence investigation.
Reports that CEO Jensen Huang may have been targeted by a Chinese intelligence effort — which Beijing denied — knocked the shares about 6% lower to $170.24 before they rebounded.
One analyst warned the episode could create a lasting overhang and congressional inquiries, though the stock's same-day rebound to $179.92 shows buyers stepped in.
Not necessarily — analysts see room for a test of the 200-week moving average near $67,755, though they describe that test as possible, not inevitable.
The 21-week SMA at $73,078 and the 50-week SMA at $75,492 frame the current range, with $67,755 as the downside target some analysts watch.
No — the Nasdaq Composite gained 2.5% in the first hour of Monday's US session as investors bought the dip on tech stocks.
Falling oil prices, with WTI crude dropping to its lowest since September 1, helped spur renewed strength in equities.
The article does not give a specific cause for Monday's drop; it notes WTI fell to $86.19, its lowest since September 1, before recovering to around $88.20.
An economist cited a negative correlation since the September attack on Saudi Arabia's East-West Pipeline, saying falling oil lifts gold, Bitcoin and the S&P 500.