Bitcoin falls to $73,500 as Nvidia turmoil and ETF outflows hit risk appetite
Bitcoin fell as much as 1.6% to trade around US$73,500 in early New York hours on Thursday, as renewed unease over technology stocks and persistent withdrawals from US spot Bitcoin ETFs weighed on risk appetite.
The trigger was Nvidia. The chipmaker's shares slumped as much as 10% in late US trading on Wednesday after reports that the company is working with an outside firm to identify potential replacements for chief executive officer Jensen Huang, following reports of multiple extramarital affairs, including one with a woman suspected of spying for China. US stock futures fell alongside other cryptocurrencies.
The ETF outflows have been building for weeks. Flows into US spot Bitcoin ETFs reversed on Oct 30, four days before the US elections, and the funds have since seen roughly US$2.5 billion in net outflows. Bitcoin's recovery from its 2026 low below US$58,000 in July has faltered, and it touched a three-month low on Wednesday after hotter-than-expected US inflation increased expectations for further interest-rate hikes.
Dean Chen, an analyst at crypto exchange Bitunix, said selling pressure is concentrated in derivatives while spot market activity remains comparatively resilient. Futures cumulative volume delta has turned deeply negative while open interest has also declined, he said in a note on Thursday. "Taken together, these indicators suggest that leveraged exposure is cooling, but market positioning remains mixed," Chen said.
Caroline Mauron, co-founder of Orbit Markets, pointed to MSCI Inc's decision to drop Strategy Inc, the largest corporate buyer of Bitcoin, from its global equity benchmarks. "While that decision was widely expected, it added to the febrile mood around the asset class since the midterms," she said. "In the short term, there is a lack of support to the downside, with the next key level to watch at US$70,000."
