Bitcoin slides under $72,000 after Nvidia CEO resigns, Strategy ejected from index

Bitcoin Magazine Pro data showed the price of bitcoin dropping under $72,000 on Thursday, reaching a low not seen since August. The declines came after Nvidia announced the resignation of its CEO, Jensen Huang, and MSCI confirmed it would drop Strategy from its indexes, which weighed on the stock.

The pressure emerged after the close on Wednesday. Bitcoin fell from roughly $74,700 to around $73,400 by 6 p.m. Eastern time, holding near that level through the night. Another drop started near 6 a.m., briefly taking the price to about $72,200 before 8 a.m. The fall picked up speed later in the morning, bringing bitcoin to roughly $71,670 near 9:29 a.m.

With that move, the cryptocurrency sank under the $72,700 mark set after Tuesday's higher-than-forecast consumer price data. The current price stands about $31,200 lower than it was a year ago.

Bitcoin tracks drop in Nvidia shares after CEO Huang resigns

On Thursday, Nvidia (NVDA) announced that Jensen Huang had stepped down as president, chief executive, and board member, with the change taking effect immediately. CFO Colette Kress was named interim CEO, while Harvey C. Jones became the company's first board chair. Kress will keep her CFO duties during her time as interim chief. A permanent replacement is being sought by the board, which stated it would look at candidates both inside and outside the firm. Nvidia plans to publish its fiscal Q3 earnings on Nov. 17 as previously scheduled.

The departure followed news of extramarital affairs, one of which sparked national security worries in Washington. Republican Senator Kevin Cramer of North Dakota had advocated for Huang's resignation in an interview with CNBC, arguing the CEO was, in his words, "so vulnerable to extortion, blackmail."

When the market opened Thursday, Nvidia's shares had lost roughly 13%. Nasdaq 100 futures were around 1.4% lower and S&P 500 futures shed about 0.7%, while Dow futures stayed roughly unchanged. Chip stocks Intel, Marvell Technology, and Micron each dropped between roughly 5% and 7.5%. CoreWeave fell about 16%, erasing most of its 24.7% gain from Wednesday. IREN, Applied Digital, and Core Scientific also saw declines.

The price of bitcoin has largely tracked the tech sector during November. It dropped on Monday following the news of an earlier Nvidia investigation, and failed to keep pace with Wednesday's chip-stock recovery. Thursday's decline reversed that modest advance and pushed further.

MSCI index removal pulls Strategy shares lower

Strategy (MSTR), the organization with the biggest bitcoin treasury among public companies, opened about 7% lower after MSCI verified plans to drop the stock from its benchmarks. The November index review from MSCI moved Strategy out of the MSCI USA Index, a decision that also affects its place in the MSCI World and ACWI indexes, becoming effective when trading closes on Nov. 30. Metaplanet, based in Japan, is scheduled for a similar removal.

The MSCI move means index funds will offload shares of MSTR, not the bitcoin itself, and the guidelines do not force Strategy to liquidate its holdings. Even so, a lower stock price makes it more challenging for the firm to gather capital for further acquisitions, particularly as mining companies like MARA are currently offloading coins.

ETF redemptions and rate-hike bets weigh on bitcoin

Institutional appetite for the funds remained tepid. Spot bitcoin ETFs recorded $299.8 million in withdrawals on Wednesday, making it five consecutive days of capital leaving the products. The five-day cumulative outflow sits near $1.44 billion. BlackRock's IBIT contributed $269.7 million to Wednesday's total, marking its ninth day in a row of redemptions.

Thursday's employment figures did little to improve the interest-rate picture. The Labor Department reported initial jobless claims hitting 200,000 in the prior week, surpassing the 195,000 that economists had forecasted. According to CME FedWatch, market participants regard a December rate increase from the Fed as highly probable, with an estimated 10% likelihood of a 50-basis-point hike. Higher borrowing costs make yieldless assets like bitcoin less appealing to hold, a dynamic that has constrained the cryptocurrency all week.

Upcoming events may provide further direction. Cisco and Applied Materials are scheduled to release their earnings after the market shuts on Thursday. On Friday, the Producer Price Index will give a fresh look at inflationary trends, following consumer price figures this week that exceeded projections.

Bitcoin was trading close to $71,800 as this article went to press.