AI Crypto Tokens Under Pressure as Nvidia Faces Export Restrictions to China
By Rony Roy
April 16, 2025, 9:27 AM UTC
Edited by Dorian Batycka
The landscape of AI-focused cryptocurrency tokens is experiencing turbulence following alarming news regarding Nvidia, the leading AI chipmaker that plays a pivotal role in the industry. Recently, Nvidia announced that it expects to incur approximately $5.5 billion in charges for the first quarter of fiscal year 2026 as a result of newly imposed U.S. export restrictions aimed at limiting the sale of its AI chips to China.
New Export Licenses Required
Government officials informed Nvidia on April 9 that it would now require special export licenses to sell its notable H20 chips and similar products to China, Hong Kong, and Macau. This new measure has been enacted with the concern that these advanced chips could be utilized to enhance Chinese supercomputing capabilities, raising national security alarms among U.S. lawmakers.
The H20 chip is Nvidia’s most sophisticated AI chip currently permitted for sale in China under previous regulations. Reports suggest that the chip has been instrumental for Chinese AI startups like DeepSeek in training their AI models, prompting further scrutiny and criticism from American legislators.
Stock Performance and Market Reaction
In light of the bleak projections and the impending financial impact, Nvidia’s stock has taken a noticeable hit. On April 15, shares fell by 6.3% in after-hours trading, closing at $105.10. This decline marks a staggering 16.45% drop in the stock price for the year.
The dip in Nvidia’s stock manifests a broader pullback in the tech sector, influenced by mounting investor anxiety alongside geopolitical tensions. Other major tech entities also witnessed losses, including Apple, Microsoft, Alphabet, and Amazon, all of which experienced declines ranging from 0.20% to 1.71% on the same day.
Technical Indicators
Adding to the concerning trend, a “death cross” phenomenon has been observed in Nvidia’s stock chart—an ominous technical signal which occurs when the 50-day moving average crosses below the 200-day moving average. The last instance of such a crossover was in April 2022, a period that witnessed Nvidia’s stock plummet nearly 50% over the ensuing six months.
Implications for AI Crypto Tokens
As Nvidia’s market position falters, investors in AI-related cryptocurrency tokens are understandably on edge. The correlation between Nvidia’s fortunes and the AI crypto sector is strong since the hardware produced by Nvidia is integral to running the AI infrastructure that supports many cryptocurrency projects.
Historically, any adverse news regarding Nvidia significantly impacts AI crypto token values. For example, following reports in December of a Chinese antitrust investigation into Nvidia, the overall market capitalization of AI crypto tokens plunged by more than 14% in just one day. Conversely, positive movement in Nvidia’s stock has previously coincided with surges in AI token valuations.
Following Nvidia’s latest announcement, the total market cap of AI-related tokens has decreased by 3.7% within 24 hours, now sitting at approximately $20.1 billion, with trading volumes reflecting diminished demand.
Market Movement of Key Tokens
Among the serviceable AI cryptocurrencies, the Near Protocol (NEAR)—the largest by market cap—recorded a 5.3% drop in the past day. Other significant tokens, including Internet Computer (ICP), Render (RENDER), Sei (SEI), Virtuals Protocol (VIRTUAL), and Akash Network (AKT), all reported losses ranging between 5% and 12%.
As AI crypto tokens continue to be influenced by fluctuations in Nvidia’s stock, market participants will be closely monitoring both regulatory developments related to the tech giant and the broader implications for AI-driven cryptocurrency ventures moving forward.
For more updates on the cryptocurrency market and emerging technologies, stay tuned as we track the evolving dynamics at play.
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