Bitcoin declined toward $71,000 after Nvidia CEO Jensen Huang resigned with immediate effect. Bitcoin's Thursday decline reached 3.5% as markets responded to the resignation. TradingView data showed BTC/USD breaking below $72,000 for the first time since Aug. 20. Bitcoin's month-to-date decline reached 7.4% after trading began on Wall Street on Thursday.
The disruption at Nvidia pushed stock markets lower, and Nvidia shares lost nearly 13% at the Wall Street open. Nvidia shares touched $148.80 before recovering to around $160, leaving the stock down 7.2% at the time of writing. However, the Nasdaq Composite avoided a large opening decline and was trading 0.6% lower at the time of writing.
Nvidia announced that Colette Kress, the company's current executive vice president and chief financial officer, had accepted the interim CEO position. Nvidia said Kress would retain the executive vice president and chief financial officer roles until a permanent CEO was appointed. Nvidia said the board was beginning a permanent CEO search that would include candidates from inside and outside the company.
Economist Mohamed El-Erian said Huang's departure would have consequences beyond Nvidia. El-Erian expected continued attention as Nvidia adjusts to losing an influential founder and as formal and informal political investigations develop.
BTC/USD dropped below the 21-week simple moving average, which stood at $73,078 on Wednesday. Keith Alan, cofounder of crypto trading platform Material Indicators, identified Friday's US Producer Price Index release as a potential near-term volatility catalyst beyond Nvidia. The October Consumer Price Index reading exceeded expectations on Tuesday, prompting markets to price in additional Federal Reserve interest-rate increases.
Alan said a weak Producer Price Index reading that reduced expectations for aggressive December/January rate increases could readily turn Bitcoin's outlook bullish. Alan said a reading matching market expectations could leave the spot price moving between nearby concentrations of exchange order-book liquidity. CoinGlass data showed BTC/USD moving through a concentration of buy orders as crypto liquidations reached $730 million over 24 hours.
Nvidia CEO Resignation Pushes Bitcoin Below $72,000
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Summary
Bitcoin news broke Thursday as the cryptocurrency dipped below $72,000, reacting sharply to Nvidia CEO Jensen Huang’s sudden resignation. BTC/USD fell 3.5% amid a broader selloff, with Nvidia shares down nearly 13% at the Wall Street open. Colette Kress, the current CFO, has taken over as interim CEO. Bitcoin analysis suggests the market is watching for a permanent replacement and the upcoming US Producer Price Index, which could influence further price swings. Economist Mohamed El-Erian warned the fallout could extend beyond the tech giant.
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