Crypto alarm: Bitcoin crashes 7%, while stocks recover from the Nvidia crisis

The Bitcoin price has taken another significant hit. At the time of writing, Bitcoin is trading at around $67,850. Approximately 7 percent lower than 24 hours ago. As a result, the cautious recovery seen earlier this week has already vanished.

There isn't much time to recover from the Nvidia crisis, in which CEO Jensen Huang was shown the door. This afternoon, new U.S. inflation figures will be released, which could heighten concerns about further interest rate hikes.

With this week's price declines, Bitcoin (BTC) has reached a critical level. The panic is widespread, but there is still no reason to believe that the bear market will last any longer. At present, the cloud of 200-week moving averages still provides support.

However, if these price averages are also lost as support, investors may start to have more serious concerns about Bitcoin. This would mean that, from a technical standpoint, there would be little reason left to be optimistic about the price trend.

All eyes are therefore on the weekly close of the Bitcoin price. The weekly chart is all about the close. Not about what happens during the week. In that respect, the night from Sunday to Monday will be a very important one for Bitcoin.

The turmoil surrounding Nvidia continued to weigh on financial markets on Thursday. CEO Jensen Huang stepped down, after which the stock fell by almost 12 percent during the trading day. The Nasdaq closed down 0.39 percent, and the S&P 500 lost 0.35 percent.

Bitcoin is therefore clearly under greater pressure than the broader stock market. While U.S. stocks have managed to recover a large part of their previous losses, Bitcoin still lacks sufficient buying power.

Today at 2:30 p.m. our time, the next test for Bitcoin will take place. This is when the U.S. Producer Price Index (PPI) for October will be released. This Producer Price Index (PPI) measures the prices that producers receive for their goods and services.

Following the heated CPI report earlier this week, this afternoon's report could once again cause volatility. So, there's no time to catch your breath. And then, next week, we will also see Nvidia's quarterly results and Anthropic's IPO.