Nvidia’s Earnings Sparks Market Rally, Bitcoin’s Plunge Raises Concerns

NEW YORK, NY — Nvidia’s blockbuster earnings report on November 21, 2025, triggered a substantial rally in the stock market, offering hope that fears around a potential AI bubble bursting were easing.

Following Nvidia’s announcement, the Dow Jones Industrial Average soared by 700 points in early trading, attempting to recover from a prior selloff related to AI stocks. The bullish mood was also bolstered by strong retail sector performance that day.

However, this optimism quickly faded, and the Dow ultimately fell by 300 points, leaving many on Wall Street puzzled about the sharp reversal. Analysts pointed to persistent apprehensions regarding a potential AI bust as a contributing factor, coupled with the mixed September jobs report, which noted an increase in the unemployment rate to its highest level in four years despite strong payroll growth.

Federal Reserve officials have adopted a more hawkish tone, casting doubt on the possibility of an interest rate cut in the upcoming month. Veteran market economist Ed Yardeni highlighted these concerns in a note issued late Thursday, attributing part of the day’s declines to the ongoing drop in bitcoin’s price. He remarked, ‘We attribute some of today’s stock market selloff to the ongoing plunge in bitcoin’s price.’

The price of bitcoin has plummeted over 30% from its recent highs, marking the cryptocurrency’s steepest decline since 2022. Many traders who used leverage for their crypto ventures are now facing margin calls, leading them to sell their stock positions.

Steve Sosnick, chief strategist at Interactive Brokers, noted the significant impact of bitcoin on broader market movements. ‘Bitcoin has become a proxy for speculation,’ he said. ‘It tells me that algorithms are acting upon the relationship between stocks and bitcoin.’

Tom Lee from Fundstrat Global Advisors connected the dots between cryptocurrency and the AI sector, suggesting that investors with substantial stakes in AI stocks often hold bitcoin as well. ‘I think crypto, bitcoin, and ethereum are in some ways a leading indicator for equities,’ he stated, referring to the weakened liquidity in these markets.

The complex relationship between these assets continues to unfold, leaving traders and investors on alert for future developments.