The crypto market continued with initial bearish sentiments on Tuesday during the New York session, which extended today during the early Asian session. The total crypto market slipped 6 percent in the past 24 hours to hover around $2.07 trillion at the time of this writing.

Altcoin Industry Follows Bitcoin

Although the altcoin industry has closely followed Bitcoin's (BTC) price action, new developments primarily reflected yesterday's poor crypto performance. The downturn saw several altcoins hitting low points, echoing the broader market sentiment.

Nvidia Under Regulatory Radar

A Bloomberg report indicated that AI heavyweight Nvidia is under the regulatory radar for possible antitrust violations. The United States Department of Justice (DOJ) reportedly sent a subpoena regarding Nvidia's antitrust violations.

Nvidia's stock closed Wednesday at $108, down 9.53 percent from the day's opening price. The company's choppy market continued during the after-hours session, resulting in a net loss of nearly $279 billion.

"The notable losses in Nvidia trickled down to other markets, including Asia's Nikkei 225, which had plunged 4% in the past 24 hours."

Impact on Stock and Crypto Markets

The notable dip in major stock markets, amid heightened fears of further decline in choppy September, impacted the entire crypto industry.

The spillover effect was particularly severe for AI-related crypto projects. Names like Bittensor (TAO), Artificial Superintelligence Alliance (FET), Render (RENDER), and The Graph (GRT) experienced significant losses.

AI-Related Crypto Projects Hit Hard

According to the latest data, the AI-related crypto market cap dropped 7.4 percent in the past 24 hours to hover at about $20.6 billion at this time.

The daily average traded volume was around $1 billion. This indicates a sharp decline in investor confidence amid Nvidia's regulatory woes and broader market uncertainty.