Bitcoin Drops 2.2% as Nvidia Leadership Concerns Hit Tech Stocks
Bitcoin fell up to 2.2% on Thursday, trading between approximately $72,900 and $73,400 as reports of a potential leadership change at Nvidia weighed on technology stocks and broader risk appetite.
Nasdaq 100 futures dropped 0.6% alongside the cryptocurrency dip. Nvidia shares fell up to 10% in late trading Wednesday and dropped roughly 7% in pre-market trading Thursday.
Nvidia is working with an outside firm to find potential successors for CEO Jensen Huang after reports surfaced of two extramarital affairs, according to Bloomberg. One of the relationships involved a woman believed to be spying on behalf of China.
Nvidia has not yet made any public decisions regarding the matter, CoinDesk reported.
Withdrawals from US spot bitcoin exchange-traded funds added downward pressure on the digital asset. Fund flows turned negative on Oct. 30, with net outflows since then totaling roughly $2.5 billion, according to Bloomberg.
The funds lost $299.9 million Wednesday, extending their withdrawal streak to a fifth day, CoinDesk reported. Bitcoin previously fell to a three-month low on Tuesday after a stronger-than-expected US inflation reading raised bets on additional interest rate hikes.
The Federal Reserve holds its next policy meeting Dec. 8–9. CME FedWatch pricing puts the probability of a rate increase near 90%, according to CoinDesk.
“Bitcoin is showing signs of a change in the structure of the market, with selling pressure concentrated in derivatives while spot market activity remains comparatively resilient,” wrote Dean Chen, an analyst for cryptocurrency exchange Bitunix, in a note Thursday, according to Bloomberg.
Chen said traders are reducing borrowed funds, though investor positioning does not point clearly in a single direction. Open interest in bitcoin futures fell 2.9% in 24 hours, and bitcoin led all coins in liquidations with $62.9 million, according to CoinDesk.
Render, a token linked to a decentralized graphics processor network, dropped 3.1% as Nvidia shares declined. Nvidia is scheduled to report third-quarter fiscal earnings on Nov. 17.
Three Republican House committee chairs have asked Huang to appear for a private session with lawmakers on Nov. 18.