The risk of a correction in the technology and bitcoin market
The high valuation of technology, driven by the AI narrative, exposes the market to an abrupt correction if the results are not as expected.
Muvdi is emphatic in pointing out that “any small mistake, any minor situation that NVIDIA shows in its negative earnings could generate a brutal, extremely strong drop in NVIDIA, and that would greatly drag down the stock indices and, consequently, bitcoin.”
The implications of a potential correction of NVIDIA could be severe for bitcoin. The analyst warns that if there is “a breakdown of artificial intelligence, and the indices drop 20%, bitcoin could drop 40%.”
This risk scenario coincides with the recent weakness of the digital asset. BTC has experienced a significant drop since the beginning of October, losing more than 25% since its peak in October 2025, which was above $126,000. Yesterday, November 18, bitcoin hit a seven-month low below $90,000, erasing all its gains for the year and leaving its annual performance at -2.10%.
Muvdi considers that the correlation between the digital asset and the risk markets is undeniable: “Bitcoin is not a refuge and will fall; it has been falling with the risk market. In fact, bitcoin is anticipating a stronger drop in the indices.
However, this volatility is not a total surprise.#BTC90kBreakingPoint
