Nvidia Drops 3% as China Says the Company Violated Anti-Trust Laws

Core Viewpoint - Bitcoin's price decline is linked to Nvidia's stock drop due to regulatory issues in China regarding its acquisition of Mellanox Technologies [1][2]. Group 1: Nvidia's Regulatory Issues - China's market regulator announced that Nvidia allegedly violated anti-monopoly laws during its 2020 acquisition of Mellanox Technologies [2]. - Specific details of the violations have not been disclosed, but the regulator stated that Nvidia breached the terms of its conditional approval [2]. Group 2: Market Impact - Nvidia's stock dropped nearly 3%, which has negatively affected the cryptocurrency market, leading to a decline in Bitcoin and AI-related tokens [1][2]. - Bitcoin traded at approximately $114,900, down from a high of $116,755 earlier in the day, indicating a significant price fluctuation [2]. - Major AI-related tokens, including ICP, RENDER, FET, and GRT, experienced a decline of over 4.5% within a 24-hour period [2]. Group 3: Correlation with Bitcoin - Nvidia is recognized as the world's largest publicly listed firm by market value and serves as a barometer for risk sentiment in financial markets, including cryptocurrencies [3]. - Historical data shows that Bitcoin and Nvidia have a strong correlation, with a rolling three-month correlation of 0.76 between Nvidia and BlackRock's spot bitcoin ETF as of last Friday [3].