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Bitcoin drops below retracement support amid Nvidia-led AI selloff
Nvidia shares fell nearly 5% after reports it may guarantee up to $250 billion in financing for OpenAI’s Ohio data center, with credit protection on Nvidia jumping the most on record.
Bitcoin slid below a key technical retracement level as a selloff in Asian technology stocks spread through the AI supply chain, with investors reassessing whether AI demand is driven by end users or increasingly by vendor financing, Action Forex reported.
Action Forex linked the market stress to Nvidia’s nearly 5% overnight decline, described as its biggest one day drop since February, which pushed the stock below the psychologically important $200 level and contributed to steep losses across Asian benchmarks including South Korea’s KOSPI, where circuit breakers were triggered for the second time this month, and Japan’s Nikkei.
The trigger, according to reports cited by Action Forex, centers on Nvidia discussions to guarantee as much as $250 billion in financing for OpenAI to lease a 10 gigawatt data center in Ohio being developed by a SoftBank subsidiary, adding to previously reported plans to support roughly $350 billion of financing for OpenAI’s Nvidia chip purchases.
Action Forex said the concerns have also spilled into credit, noting that the cost to insure Nvidia’s five year debt against default reportedly recorded its largest single day increase on record, a move the outlet described as a sign bond investors may be starting to reprice risks tied to Nvidia’s growing financing commitments.
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