AI Crypto Tokens Plummet as Nvidia Faces Massive Hit from U.S. Export Crackdown

Nvidia's $5.5 Billion Charge Sends Shockwaves Through AI Crypto Market

Hang onto your hats, crypto fans! AI-focused tokens are taking a nosedive as Nvidia, the kingpin of AI chips, braces for a colossal financial blow from new U.S. export restrictions. This isn't just a hiccup; it's a full-blown earthquake shaking the foundations of the AI crypto world!

In a bombshell filing dropped on April 14, Nvidia revealed it's staring down the barrel of a whopping $5.5 billion in charges for the first quarter of fiscal year 2026. Why? Because Uncle Sam's tightening the screws on Nvidia's AI chip sales to China. Ouch!

Just days earlier on April 9, the feds threw a wrench in Nvidia's plans, demanding special export licenses for their hot-selling H20 chips and others like it. The new rules are gunning for China, Hong Kong, and Macau, with the government sweating bullets over these chips juicing up Chinese supercomputers. Talk about a high-stakes game of cat and mouse!

The H20 chip is the cream of the crop that Nvidia's allowed to hawk in China under the old rules. And get this – Chinese AI startup DeepSeek's been using it to train models, which has U.S. lawmakers seeing red. The tension's so thick you could cut it with a knife!

Despite Nvidia's plans to drop hundreds of millions over the next four years to make some AI chips stateside, their stock took a brutal hit after the filing. NVDA tanked 6.3% in after-hours trading on April 15, crashing to $105.10. And brace yourselves – it's down a gut-wrenching 16.45% so far this year. It's like watching a slow-motion train wreck!

Nvidia's not the only one feeling the heat. Trump's tariff escalation's got the whole tech sector sweating, with other big names like Apple, Microsoft, Alphabet, and Amazon all bleeding red. It's a bloodbath out there!

And if that's not enough to make you break out in a cold sweat, check this out: a "death cross" just formed on the 1-day NVDA/USD chart. That's right, folks – a bearish signal where the 50-day moving average dives below the 200-day one. The last time this happened in April 2022, Nvidia's stock took a nosedive of nearly 50% in just six months. Buckle up, it's gonna be a wild ride!

AI crypto token investors are on the edge of their seats, and for good reason. These tokens have been riding the Nvidia rollercoaster, thanks to the company's hardware being the lifeblood of the AI infrastructure that these projects depend on. When Nvidia sneezes, the AI crypto market catches a cold!

Remember December? When China launched an antitrust probe into Nvidia, the AI crypto token market cap took a 14% hit in a single day. And when Nvidia's stock surges, AI tokens go on a bullish rampage. It's a wild, unpredictable dance!

After Nvidia's latest filing, the total market cap of AI-related tokens took a 3.7% tumble in the past 24 hours, now hovering around $20.1 billion. Trading volume's also taking a nosedive, signaling that demand's drying up faster than a desert in a heatwave.

Near Protocol (NEAR), the heavyweight champ of AI cryptos by market cap, took a 5.3% hit over the past day. And it's not alone – other big players like Internet Computer (ICP), Render (RENDER), Sei (SEI), Virtuals Protocol (VIRTUAL), and Akash Network (AKT) are all licking their wounds, down between 5% and 12%. It's a crypto bloodbath, and no one's safe!