Bitcoin recently plummeted to $56,000, as the cryptocurrency market faced a significant downturn closely tied to a drastic fall in Nvidia’s stock price. This sudden decline has triggered severe volatility across global financial markets, reflecting widespread investor concerns.

The turbulence stems from the U.S. Department of Justice (DOJ), which has issued subpoenas to major chip manufacturers, including Nvidia, as part of an extensive investigation into potential antitrust violations. This probe has ignited fears about the broader implications for the market, especially given Nvidia’s influential role in the artificial intelligence chip sector.

Nvidia is currently under intense scrutiny by authorities due to its powerful market position. The DOJ’s investigation, which began with informal questionnaires, has now escalated to enforceable subpoenas. Officials are reportedly worried that Nvidia’s business practices may stifle competition by making it difficult for customers to switch to other suppliers.

The DOJ’s announcement led to a sharp decline in Nvidia’s stock price, with shares plunging by 9.5%. This dramatic drop wiped out an astonishing $279 billion in market capitalization, marking a historic one-day loss for any company.

The repercussions of Nvidia’s stock collapse have rippled through major indices in both the United States and Asia. The Nasdaq, heavily dominated by technology stocks, tumbled more than 3%, while the S&P 500 saw a drop of over 2%.

Asian markets mirrored this trend. Japan’s Nikkei 225 fell by 3.3%, and South Korea’s Kospi declined by 2.7%. These declines highlight the interconnectedness of global markets and the widespread impact of Nvidia’s troubles.

Cryptocurrencies have not been immune to this market turmoil. Bitcoin, the leading digital currency by market value, dropped significantly to $56,000, a stark fall from its recent highs. Ethereum (ETH), another major cryptocurrency, fell to $2,400, while Ripple’s XRP decreased to $0.55.

These sharp declines in digital assets have reignited fears of a potential market correction similar to the one experienced between July 22 and August 5, when the overall cryptocurrency market capitalization plummeted by 30%.

The ongoing antitrust investigation into Nvidia, coupled with the broader market downturn, has created a highly volatile environment for both traditional and digital assets. Investors are closely monitoring these developments as they navigate this period of heightened uncertainty.