Bitcoin Falls 4% as Nvidia and Strategy Weigh on Crypto

Bitcoin gave back the gains it made Wednesday, when it ended a two-day losing streak. Reports that Nvidia was preparing to oust Chief Executive Officer Jensen Huang preceded the decline; the ouster was made official Thursday, and Nvidia shares fell 5.3%. The tech-heavy Nasdaq Composite was on track for another down day. Crypto assets tend to move in the same direction as the technology sector.

Strategy, the world’s biggest corporate bitcoin holder, is also facing removal from MSCI’s global benchmarks next month. MSCI said Wednesday that companies without substantial operating assets would be classified as “nonoperating” and become ineligible for its global indexes from Nov. 30. Investors tracking those benchmarks must sell assets removed from them, potentially prompting passive funds to exit Strategy at month’s end. Other index providers could make similar rulings, adding pressure to the company’s shares, which fell 6% Thursday.

Weak demand has added to bitcoin’s losses. U.S. spot bitcoin exchange-traded funds recorded nearly $300 million in single-day outflows on Nov. 11, a sign of sluggish institutional demand, cryptocurrency trading firm Bitget said. “The broader digital asset market remains under pressure due to persistent inflation concerns and anticipation of a tighter monetary policy by the Federal Reserve,” Bitget CEO Gracy Chen said. Ether fell 3% to $2,016.73.