Crypto Market Suffers $129M in Liquidation as DOJ Subpoenas AI Chip Maker Nvidia

The broader crypto market sees fresh liquidation of $129 million in the past day following reports that the U.S. Department of Justice (DOJ) is close to filing an antitrust lawsuit against Nvidia. 

Bloomberg reported yesterday that the Justice Department issued subpoenas to AI chip maker Nvidia and other companies. Notably, the subpoena is part of the DOJ’s ongoing probe into whether Nvidia violated U.S. antitrust laws.

The investigation focuses on whether Nvidia’s dominance has hindered competition in the AI chip market. According to Bloomberg, sources familiar with the matter, including advocacy groups, claim that Nvidia threatens customers who use its AI chip alongside those manufactured by other companies. 

Probe Escalates 

Previously, the Justice Department had handled the investigations lightly, sending questionnaires to several businesses to obtain necessary evidence.  

However, things escalated recently, as the DOJ issued subpoenas to the AI chip maker and other companies. This indicates that the Justice Department might be closer to charging Nvidia with violating federal antitrust laws.  

Consequently, the escalating investigation triggered a sharp decline in the stock and crypto markets. 

Bitcoin and Ethereum Dip

Bitcoin (BTC) plunged below the $56,000 price territory, reaching $55,673 in the early hours of today, according to CoinMarketCap data.

However, the premier asset rebounded almost immediately, currently trading at $56,405. This reflects a decline of 4.39% in the past day and 4.71% in the weekly timeframe. 

Similarly, Ethereum (ETH) was not spared in the market rout, dropping below the $2,400 level. Priced at $2,375, ETH has witnessed a daily decline of 5.4%. 

$118M Liquidated in 4 Hours as Daily Liquidation Hits $129M

The sharp drop in BTC and ETH prices led to a massive liquidation across the crypto market. Famous blockchain reporter Colin Wu disclosed that $118 million worth of positions were liquidated within four hours. According to Lu, $107 million of this figure were long positions.

At press time, a total of $129 million have been liquidated in the past day, with $114.34 million being long positions. Binance witnessed the most liquidations at $65.37 million, followed by OKX, which saw $31.12 million in liquidation. 

The development comes a day after leading blockchain analytics firm Top 7 ICO reported that $1.01 billion has been liquidated in the crypto market over the past week. 

Top Exchanges by Liquidations in last 7 days

The vast majority of the casualties were long positions last days, with more than $1.01B liquidated in total. Let’s take a look at the top exchanges by liquidations of longs and shorts within last week, according to @coinglass_com. pic.twitter.com/2ye6t23wCG

— TOP 7 ICO | #StandWithUkraine🇺🇦 (@top7ico) September 3, 2024