Daily Market Update: Crypto Prices Hold Steady as Nvidia Drops 6%

TLDR

• Amazon announced a $50 billion investment in AI and supercomputing infrastructure, initially boosting market sentiment on Monday
• Nvidia stock dropped 6% on Tuesday, raising concerns about the AI-crypto correlation that has driven crypto prices in 2025
• Bitcoin held around $87,000 but failed to gain momentum, with trading volume shifting to Solana and Ethereum instead
• Fed Governor Christopher Waller supported a December rate cut, pushing gold prices above $4,100
• Markets now pricing in 85% probability of a quarter-point Fed rate cut in December

Bitcoin remained stable near $87,000 on Tuesday as investors assessed a weakening link between AI stocks and cryptocurrency prices. The digital asset failed to attract strong buying interest despite broader market uncertainty.

Amazon’s $50 billion commitment to US AI and supercomputing infrastructure on Monday initially lifted investor sentiment across tech and crypto markets. The announcement particularly benefited crypto miners shifting their operations toward AI infrastructure services.

However, Nvidia’s 6% decline on Tuesday exposed vulnerabilities in the AI-crypto connection. For most of 2025, cryptocurrency has traded more like a high-risk AI investment than its traditional role as an inflation hedge.

Market maker Enflux told CoinDesk that Bitcoin’s upside remains limited until Nvidia stabilizes. The firm noted that crypto loses a key growth driver when AI stocks decline.

Bitcoin dominance failed to increase during the recent risk-off period, breaking from typical market patterns. Instead, trading activity moved toward Solana, Ethereum, and tokens tied to decentralized physical infrastructure networks and GPU computing.

Ethereum traded above $2,900 as investors rotated into assets with clearer near-term catalysts. The shift suggests traders are seeking specific narratives rather than broad market exposure.

Gold climbed above $4,100 in early Tuesday trading, rising about 1% after Fed comments. Fed Governor Christopher Waller backed a potential December rate cut during recent remarks.

Lower interest rates make gold more attractive compared to interest-bearing investments. The precious metal benefited from increased safe-haven demand.

US stock futures showed modest gains Tuesday night after major indexes posted strong advances earlier in the day. Dow Jones Industrial Average futures rose 0.2%, while S&P 500 and Nasdaq 100 futures climbed 0.3% and 0.4% respectively.

The Dow Jones finished Tuesday with a 660-point gain, marking its third consecutive daily advance. Tech stocks supported the broader market rally.

Alphabet reached record highs after reports that Meta may adopt Google’s TPU chips by 2027. The news highlighted potential competition in the AI chip market.

Markets currently price in an 85% probability of a quarter-point Fed rate cut in December, according to CME FedWatch tool data. The anticipated cut has helped support investor confidence during a challenging November.

The S&P 500 and Dow remain down just over 1% for November. The Nasdaq Composite has declined nearly 3% during the month.

Asian markets face uncertainty as trading begins Wednesday. Market direction depends largely on whether Nvidia and other AI stocks can stabilize after Tuesday’s decline.

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