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Crypto Volatility Surges as Nvidia Reversal and Jobs Data Shake Markets
Crypto in Extreme Fear as Stock Market Tanks and Rate-Cut Hopes Fade – A sudden sell-off in the U.S. stock market on Thursday rippled violently across global risk assets, sending Bitcoin tumbling to its lowest point in seven months and dragging crypto sentiment deep into “extreme fear” territory.
Stocks Slide, Crypto Follows
After opening with early gains, the S&P 500 reversed sharply, plunging nearly 4%. Even Nvidia, which had rallied earlier on strong earnings, flipped into a steep 8% decline. The broader sell-off erased over $2.7 trillion in market capitalization across U.S. equities—almost the size of the entire crypto market, which hovered just above $3 trillion after shedding 7%.
Bitcoin wasn’t spared. The world’s largest cryptocurrency revisited the $85,000 level for the first time since April, with market liquidations soaring to $829 million, according to CoinGecko.
Jobs Data, Fed Caution, and Private Credit Fears
While some observers pointed to the upcoming November jobs report, analysts said Thursday’s plunge reflects deeper macro anxieties and shifting market structure.
Fed Governor Lisa Cook’s remarks on emerging risks in private credit markets drew particular attention. According to Peter Chung of Presto Research, this risk remains “under-discussed,” especially as hopes for a December rate cut fade amid a divided Federal Reserve.
Strong labor data and Cook’s comments contributed to rising macro uncertainty, noted Jay Jo of Tiger Research. Meanwhile, U.S. credit spreads have widened—still moderate, but signaling growing caution among investors.
Technical Forces Accelerate the Downturn
Tim Sun of HashKey Group emphasized that the decline was driven less by news and more by sentiment and liquidity mechanics. Traders who had bought protective put options ahead of Nvidia’s earnings and the nonfarm payroll release unwound positions once uncertainty cleared, triggering an implied volatility crush. Market makers then sold long positions, sparking the initial drop. Trend-following strategies intensified the fall as prices broke key levels.
What Comes Next for Risk Assets?
With rate-cut odds for December sliding to 35%, analysts expect the choppy environment to persist. Year-end portfolio rebalancing could further weigh on markets.
“Most investors are dealing with too many unknowns,” said NOBI CEO Lawrence Samantha. As uncertainty piles up, both retail and institutional players retreat from risk—an impulse increasingly magnified by automatic trading systems.
