Bitcoin trades weak below $74,600 as risk appetite turns cautious

Bitcoin is trading in heavy conditions below $74,600, with a cautious mood taking hold. Without a crypto-specific trigger, the token is functioning as a high-beta proxy for broader risk sentiment, making Nvidia's opening later the key event to watch. A sharp sell-off in technology stocks would probably maintain pressure on the digital asset. A steady open could draw in buyers on the dip. The 200-day moving average, just above $73,000, is the next level traders are expected to defend. A decisive break beneath it would cast doubt on the longer-term uptrend. Continued outflows from exchange-traded funds indicate that institutional investors are not rushing to buy at these levels.

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Earlier:

• Three risks for Nvidia shares after Huang admits affair with suspected Chinese spy

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The cryptocurrency is easing lower on a nervous Monday, without any crypto-specific news, which leaves Nvidia and the broader tech sentiment as the most likely factors directing where bitcoin moves next.

Bitcoin dipped under $75,000 early during the Asian session, changing hands near $74,500. This continues a soft stretch that has pushed the leading digital currency about 40% below its all-time peak.

No clear crypto catalyst was behind the move. Instead, the decline coincides with a more guarded tone among risk assets as traders readied for the first US session since Nvidia chief executive Jensen Huang acknowledged a relationship with a business executive US officials reportedly believe may be working for Chinese intelligence. Nvidia's board has launched an independent investigation. It states it sees no indication that secrets were compromised, but the situation adds headline risk to the stock that has been the main driver of the AI trade. Bitcoin has recently tended to move in tandem with technology and growth equities, so a stumble in that area can quickly spill over.

The weekend also brought a suspected Iranian drone strike on a major gas field in Iraq's Kurdistan region. That served as a reminder that geopolitical threats remain high despite more conciliatory signals from the US on Iran.

The underlying picture for bitcoin was already fragile. Price data show the token down about 3% over the last seven days and roughly 8% over the last 30 days. It briefly pushed above $80,000 after last weeks US midterm elections before retreating. US spot bitcoin ETFs saw net outflows of almost $1.3 billion over the five sessions ending November 6, pointing to declining institutional interest.

On the technical side, bitcoin is trading well under its 50-day moving average, which sits near $82,000, but still above its 200-day moving average, which is located just above $73,000. That longer-term average is the next zone traders are likely to monitor if selling picks up.

Whether the decline deepens will likely depend less on crypto-specific news and more on how Nvidia and the technology sector perform once Wall Street begins trading.

As bitcoin becomes more mainstream, the factors pushing its price are also becoming more mainstream.