Bitcoin Falls Below $72,000 as Nvidia CEO Exit and Strategy Index Removal Weigh on Markets
Bitcoin traded below $72,000 on Thursday, its lowest level since mid-August, as Nvidia said CEO Jensen Huang had resigned and MSCI confirmed it will remove Strategy from its indexes. Spot bitcoin ETFs have recorded five straight days of net outflows, and markets are pricing a possible December Fed rate hike.
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The Price Move
Bitcoin fell below $72,000 on Thursday morning, its lowest level since mid-August. According to Bitcoin Magazine Pro data, the asset dropped from about $74,700 on Wednesday evening to a session low of roughly $71,670 around 9:29 a.m. ET. The Defiant reported a low of $71,500 on Coinbase, a difference of about $170 from Bitcoin Magazine's figure that likely reflects exchange-specific pricing and timing.
Bitcoin Magazine placed the drop at roughly $31,200 below where the asset traded a year ago. The move also broke a low near $72,700 set after Tuesday's hotter-than-expected inflation report. The Defiant reported $368 million in 24-hour derivatives liquidations tracked by Coinalyze, mostly on long positions.
Nvidia Leadership Change and Tech Spillover
Nvidia said Thursday that Jensen Huang had resigned as president, chief executive and board member, effective immediately. Chief Financial Officer Colette Kress was named interim CEO and will keep her finance role, and Harvey C. Jones was appointed the first board chair. The resignation followed reports of extramarital relationships, one of which Sen. Kevin Cramer said raised national security concerns.
Nvidia shares fell about 13% at the open, and Nasdaq 100 futures dropped about 1.4%. Intel, Marvell Technology and Micron fell between roughly 5% and 7.5%, and CoreWeave lost about 16%, giving back most of Wednesday's 24.7% gain. Bitcoin Magazine noted that bitcoin has tracked tech stocks for much of this month, so the chip-sector selloff transmitted into crypto.
Strategy and Index Flows
Strategy (MSTR), the largest corporate holder of bitcoin, fell about 7% at the open after MSCI confirmed its removal from the MSCI USA Index, which also takes it out of the MSCI World and ACWI indexes effective at the November 30 close. Japan's Metaplanet is also slated for removal. Bitcoin Magazine reported that index funds will sell MSTR shares rather than bitcoin, and that nothing in the rules requires Strategy to sell its own holdings. The company's weaker equity price, however, makes it harder to raise capital for new purchases while miners such as MARA are selling coins.
Fund Flows and Rate Outlook
Spot bitcoin ETFs lost $299.8 million on Wednesday, their fifth consecutive day of net outflows, for a five-day total of about $1.44 billion. BlackRock's IBIT accounted for $269.7 million of Wednesday's redemptions, its ninth straight session of outflows.
The macro backdrop also weighed on the market. The Labor Department said initial jobless claims rose to 200,000 last week, above the 195,000 economists had expected. CME FedWatch data cited by Bitcoin Magazine shows traders treating a December Fed rate hike as close to certain, with roughly a 10% probability of a half-point move. Bitcoin Magazine noted that higher rates reduce the appeal of a non-yielding asset.
Source Discrepancies and What's Next
The two reports differ modestly on the session low: $71,670 per Bitcoin Magazine Pro versus $71,500 on Coinbase per The Defiant. Both agree the move was the sharpest since mid-August. Upcoming catalysts include Cisco and Applied Materials earnings after Thursday's close and Friday's Producer Price Index release, which will provide another read on inflation after this week's hotter consumer price data. Nvidia's fiscal third-quarter results are still scheduled for November 17.
Why It Matters
For Traders
With five straight days of ETF outflows and a possible December rate hike priced in, Friday's PPI print and tech earnings could drive the next leg of bitcoin's move.
For Investors
MSCI's index removal of Strategy and sustained ETF redemptions signal weakening institutional demand that may persist beyond the current macro cycle.
For Builders
Protocols and treasury products tied to Strategy's equity or bitcoin-linked financing should stress-test scenarios where MSTR trades at a discount and index demand disappears.
This article is for information only and is not financial advice. Read the full disclaimer.
