Nvidia's Financial Irregularities Prompt Market Reactions
Independent researcher Shanaka Anslem Perera reported a severe discrepancy in Nvidia's financial data, including an 89% increase in accounts receivable and a 75% cash conversion rate, which falls short of industry standards. Nvidia's alleged revenue inflations through circular funding loops with xAI, OpenAI, Microsoft, and Oracle were highlighted.
Market uncertainty has prompted significant institutional sell-offs, including actions by Peter Thiel and SoftBank, with Michael Burry acquiring put options, all reflecting caution. The projected impact if Nvidia's stock drops further could lead to a $23 billion Bitcoin liquidation, causing severe crypto market disturbances.
"AI hype cycles always end with volatility crossing over into crypto. Watch for forced liquidations if big tech cracks." - Arthur Hayes, Co-founder, BitMEX
Bitcoin Faces Potential $23 Billion Liquidation Amid Instability
Nvidia's cash conversion rate of 75% highlights a financial anomaly not seen since the tech industry's rapid growth phases in the 2000s, when similar patterns triggered significant market collapses.
Bitcoin's price stands at $85,980.45, with a market cap of $1.72 trillion and dominance of 58.30%, according to CoinMarketCap. It has seen a 7.19% decline over 24 hours, 11.65% over seven days, and a 20.52% drop over 30 days, reflecting market volatility. The 24-hour trading volume has increased by 22.19%.
The Coincu research team highlights potential regulatory scrutiny of tech-crypto dynamics and recommends that investors understand market contagion risks. Analysts suggest attention to historical trends in tech evaluations for informed investment.