Bitcoin Drops Toward $73K as Nvidia Crashes 9% and MSCI Removes Strategy

Bitcoin declined as Nvidia shares plunged 9% in after-hours trading and MSCI confirmed Strategy’s removal from its global indexes. U.S. spot Bitcoin ETFs recorded $1.88 billion in November outflows, with BlackRock’s IBIT accounting for 94% of the withdrawals.

Bitcoin fell from $74,811 to $73,480 within two hours of the U.S. market close. The cryptocurrency weakened overnight as two major developments unsettled markets following Wednesday’s session. Nvidia shares tumbled nearly 9% after reports involving CEO Jensen Huang emerged, while index provider MSCI announced plans to exclude Strategy, the largest corporate holder of Bitcoin, from its global indexes.

On Thursday morning, Bitcoin was trading at $73,588 on Binance, down 0.4% over the previous 24 hours and 5.8% over the past week.

ETF flows added to the pressure. U.S. spot Bitcoin exchange-traded funds (ETFs) recorded $299.8 million in net outflows on Wednesday, extending their losing streak to five consecutive trading sessions. Meanwhile, Nasdaq futures declined 0.9%.

What triggered Bitcoin’s latest decline, and how much of the selling pressure is linked to ETF withdrawals?

Nvidia and MSCI Deliver Two Major Market Shocks

The first wave of selling came from Nvidia, the world’s most valuable semiconductor company. The New York Times reported Wednesday evening that Huang had another relationship with a senior employee who reports directly to him. The Wall Street Journal also reported that Nvidia’s board was preparing to remove Huang from his CEO position.

Nvidia finished Wednesday’s session 2.9% higher at $173.73. However, its share price dropped to $157.99 within two hours, representing a 9.1% decline. The stock remained down 8.6% ahead of Thursday’s opening bell. Nvidia has lost approximately 15% since last Friday.

The initial decline began Monday after Nvidia’s board launched a separate investigation into reports that Huang had become the target of a foreign intelligence operation.

Bitcoin has maintained a close correlation with technology stocks throughout the year, and the latest downturn followed the same pattern. Nasdaq 100 futures fell 1.1% during the same two-hour period.

The second development directly affected the cryptocurrency sector. MSCI, a major index provider whose benchmarks influence trillions of dollars in investment capital, confirmed that Strategy would be removed from its global indexes following the market close on November 30.

The decision was based on MSCI’s assessment that Strategy increasingly resembles an investment fund holding Bitcoin rather than a traditional operating company. Japan-based Metaplanet and Upexi will also be excluded.

Investment funds tracking MSCI’s indexes will be required to dispose of their Strategy holdings. JPMorgan previously projected that the resulting selling pressure could reach approximately $2.8 billion. Strategy stated that index-tracking funds collectively hold around 13 million shares, representing 3.1% of its outstanding stock.

Strategy shares were down 1.8% before Thursday’s market opening.

The consequences extend beyond Strategy’s stock performance. The company remains one of the most consistent corporate Bitcoin buyers. A reduction in index-linked demand for its shares could make future capital raises more difficult and expensive, potentially limiting its ability to acquire additional Bitcoin.

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Bitcoin ETF Outflows Continue With Seven Negative Sessions in Eight

ETF withdrawals began before the Nvidia sell-off and MSCI announcement. An examination of daily net flows across U.S. spot Bitcoin ETFs throughout November highlights the extent of the ongoing selling pressure.

The funds experienced net outflows on seven of the eight trading days recorded so far this month. November 4 was the only session to attract fresh capital, bringing in $74.6 million.

Combined withdrawals from the funds have reached $1.88 billion in November. The most recent five trading sessions alone accounted for $1.44 billion in net outflows.

BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF, has led the withdrawals. The fund recorded $1.77 billion in net outflows, accounting for approximately 94% of the total amount withdrawn from all funds.

On Wednesday, IBIT alone lost $269.7 million out of the $299.8 million withdrawn from U.S. spot Bitcoin ETFs.

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