Bitcoin falls below $73,000 as Nvidia drops 8% on reported Huang removal plan

Bitcoin traded below $73,000 after Nvidia shares dropped 8% following reports that Nvidia's board was preparing to remove CEO Jensen Huang. Bitcoin has closely tracked artificial intelligence and chip stocks for much of this year because both attract the same risk-tolerant capital. A steep decline in the sector's largest company therefore typically affects cryptocurrency markets too.

The Wall Street Journal reported Wednesday that Nvidia's board planned to meet as soon as this week to decide Huang's future. The planned meeting followed a company investigation into two extramarital affairs. According to the Journal, one affair involved a Megaspeed executive whom U.S. intelligence officials believe may be an asset of China's intelligence services. Huang admitted the affairs in a staff letter over the weekend and apologized for breaching the trust of Huang's family and employees. However, Huang has said Huang did not know the woman was a suspected spy.

Nvidia's board had disclosed no final leadership decision by Thursday morning. The board expressed confidence in Huang in a November 8 statement that also confirmed an independent investigation.

Analyst Benjamin Cowen described a repeated pattern in Bitcoin and stocks: declines into Thursday and Friday, bearish warnings of "Black Monday," and recoveries from Monday through Wednesday. Cowen wrote last week, "Perhaps the time to pivot is after this pattern breaks?" Cowen's post neither forecast this particular weekend nor connected Huang's situation with Bitcoin. A recovery from Monday through Wednesday after the 8% selloff would confirm that the pattern remains intact. A failure to recover would be the signal Cowen says to monitor.

SoSoValue recorded $299.8 million in net withdrawals from U.S. spot Bitcoin ETFs on Wednesday. The funds have experienced five consecutive sessions of net outflows, with combined withdrawals of roughly $1.44 billion. BlackRock's IBIT recorded outflows of $269.7 million. Grayscale's GBTC recorded outflows of $39.1 million. Morgan Stanley's MSBT attracted $9 million, offsetting only part of the withdrawals elsewhere.

The ETF withdrawals began before the reports about Huang emerged. An unfavorable outcome to Nvidia's leadership situation could further accelerate the outflows.