Bitcoin Sinks Toward $73K as Nvidia Rout and MSCI Strategy Decision Rattle Markets

Bitcoin extended its decline toward $73,000 after Nvidia shares plunged 9% in after-hours trading and MSCI confirmed that Strategy would be removed from its global indexes. Meanwhile, U.S. spot Bitcoin ETFs have recorded $1.88 billion in November outflows, with BlackRock’s IBIT accounting for 94% of the total.

The cryptocurrency dropped from $74,811 to $73,480 within two hours of Wednesday’s U.S. market close as fresh developments rattled investor sentiment. Nvidia shares tumbled nearly 9% following reports concerning CEO Jensen Huang, while MSCI announced plans to exclude Strategy, the largest publicly traded corporate Bitcoin holder, from its global benchmarks.

On Thursday morning, Bitcoin traded at $73,588 on Binance, down 0.4% over 24 hours and 5.8% over the past seven days.

Persistent institutional withdrawals have added to the market pressure. U.S. spot Bitcoin exchange-traded funds (ETFs) saw $299.8 million in net outflows on Wednesday, extending their withdrawal streak to five consecutive trading days. Nasdaq futures also slipped 0.9%.

Nvidia Rout and MSCI Decision Put Pressure on Markets

The first setback came from Nvidia, the world’s largest chipmaker by market value. The New York Times reported Wednesday evening that CEO Jensen Huang had another relationship with a senior employee reporting directly to him. Separately, The Wall Street Journal reported that Nvidia’s board was preparing to remove him as CEO.

Nvidia shares ended Wednesday’s regular session at $173.73, gaining 2.9%. However, the stock reversed sharply after hours, falling to $157.99 within two hours, a decline of 9.1%. It remained down 8.6% ahead of Thursday’s opening bell. Overall, Nvidia has shed approximately 15% since last Friday.

The initial selling pressure emerged Monday after the company’s board opened a separate investigation into reports that Huang had been targeted by a foreign intelligence operation.

Bitcoin has maintained a strong relationship with technology stocks this year, making it vulnerable to the latest equity market weakness. Nasdaq 100 futures dropped 1.1% over the same two-hour period.

The second development had more direct implications for the crypto industry. MSCI, whose indexes serve as benchmarks for investment funds managing trillions of dollars, confirmed that Strategy would be removed from its global indexes after the market closes on November 30.

MSCI determined that Strategy increasingly operates like an investment fund holding Bitcoin rather than a conventional business. Japan’s Metaplanet and Upexi are also facing removal.

The decision means funds tracking MSCI benchmarks will have to sell their Strategy shares. JPMorgan previously estimated that the resulting sales could reach approximately $2.8 billion. Strategy said these funds collectively own around 13 million shares, representing 3.1% of its outstanding stock. Its shares declined 1.8% before Thursday’s market open.

The consequences could extend beyond Strategy’s equity valuation. The company remains among the most consistent corporate Bitcoin purchasers. Reduced demand for its shares from index-tracking funds could increase its financing costs and make future Bitcoin acquisitions more difficult.

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Bitcoin ETFs Record $1.88 Billion in November Withdrawals

ETF outflows were already building before the Nvidia sell-off and MSCI announcement. Daily net-flow figures from U.S. spot Bitcoin ETFs show that institutional demand has weakened considerably this month.

The funds experienced net withdrawals during seven of the eight trading sessions so far in November. November 4 was the only session to attract fresh capital, recording $74.6 million in inflows.

Cumulative withdrawals have reached $1.88 billion this month, including $1.44 billion over the latest five trading sessions.

BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF, has driven most of the selling. It recorded $1.77 billion in net outflows, accounting for approximately 94% of withdrawals across all U.S. spot Bitcoin funds.

On Wednesday, IBIT alone saw $269.7 million leave the fund, representing the majority of the $299.8 million in total daily ETF outflows.