The recent crash in the cryptocurrency market is sending shockwaves through both crypto and stock markets, creating uncertainty for investors everywhere. Bitcoin, Ethereum, and other digital assets have dropped sharply from their highs, and this decline is causing tension across financial markets.

Stocks are also expected to face a rocky week. While investors are watching major earnings reports from big names like Nvidia, Walmart, Home Depot, Lowe’s, and Target, they’re also concerned about broader economic issues like inflation, tariffs, and slower job growth.

On Thursday, the Dow Jones Industrial Average plunged nearly 800 points, and even after a partial recovery on Friday, it still ended the week with a small gain of 0.3%. The Nasdaq Composite had a rough time too, falling more than 500 points before bouncing back slightly. It still closed the week down 0.5%.

All eyes are now on Nvidia’s upcoming earnings report. As of last Friday, Nvidia was the world’s most valuable company with a market cap of $4.63 trillion — making up about 8.5% of the entire S&P 500 Index. The company is expected to report earnings of $1.22 per share (up 50% from last year) and revenue of $547 billion (up 56%).

Despite being down 10% from its recent high, Nvidia stock is still up nearly 42% in 2024. The company is a leader in chips used for artificial intelligence (AI), and it has strong financials — with $57 billion in cash and just $8.5 billion in long-term debt. Even as tech giants like Google, Amazon, and Meta build their own AI chips, many experts believe Nvidia will stay ahead due to its versatile hardware.

Still, some worry that the AI boom could mirror the early 2000s dot-com bubble, when chip demand led to overordering and a sudden crash.

Other major companies reporting earnings this week include:

– **Walmart**: Known for smart investments in tech and navigating trade tariffs well. CEO Doug McMillon will step down in January, with John Furner taking over.
– **Target**: Has struggled to compete with Walmart and Costco in recent years.
– **Home Depot & Lowe’s**: Their success depends heavily on the housing market and interest rates.
– **Medtronic**: A healthcare company whose future depends on patient demand and insurance coverage.

Meanwhile, the crypto market continues to struggle. Bitcoin dropped 3.9% at the end of last week to around $94,263. It’s down 14% in November alone and nearly 24% from its October peak. While Bitcoin is still up 41% since the last U.S. election, it’s only up about 2% for the year and is down 9% since January 20.

Other cryptocurrencies are also falling. Crypto trading platforms like Coinbase are feeling the pain — its stock is down 17.4% this month but still up more than 200% for the year. Robinhood Markets has also dropped nearly 20% since early October.

Michael Saylor’s company, MicroStrategy (now called Strategy), has taken a big hit too. Known for buying large amounts of Bitcoin, its stock has dropped from $455 in July to under $200 now. Its market value has also been cut in half.

As usual with crypto, what goes up often comes crashing back down. Many investors who bought near the peak are now facing major losses.

What remains unclear is whether this crash in cryptocurrencies will spill over into the broader stock market — but for now, caution is in the air across Wall Street.