Bitcoin fell toward the $73,000 level as Nvidia shares plunged 9% in after-hours trading and MSCI announced Strategy’s exclusion from its global indexes. U.S. spot Bitcoin ETFs have recorded $1.88 billion in November outflows, with BlackRock’s IBIT responsible for nearly 94% of the withdrawals.
Bitcoin dropped from $74,811 to $73,480 in just two hours following the U.S. market close. The decline continued overnight as two major developments weighed on investor sentiment after Wednesday’s session. Nvidia shares tumbled approximately 9% following reports concerning CEO Jensen Huang, while index provider MSCI confirmed that Strategy, the largest corporate Bitcoin holder, would be removed from its global benchmarks.
On Thursday morning, Bitcoin was trading at $73,588 on Binance, reflecting a 0.4% decline over 24 hours and a 5.8% loss over the past week.
Institutional selling has added to the downward pressure. U.S. spot Bitcoin exchange-traded funds (ETFs) registered $299.8 million in net outflows on Wednesday, extending their withdrawal streak to five consecutive sessions. Nasdaq futures also declined 0.9%.
Nvidia Sell-Off and MSCI Decision Shake Markets
Nvidia triggered the first wave of market uncertainty. The New York Times reported Wednesday evening that CEO Jensen Huang had another relationship with a senior employee who reports to him. The Wall Street Journal separately reported that Nvidia’s board was preparing to remove him as CEO.
Nvidia shares closed Wednesday at $173.73, gaining 2.9% during the regular session. However, the stock reversed sharply after hours, falling to $157.99 within two hours, a 9.1% decline. Ahead of Thursday’s opening bell, Nvidia remained down 8.6%. The company’s shares have declined roughly 15% since last Friday.
The initial sell-off began Monday after Nvidia’s board initiated a separate investigation into reports that Huang had been targeted by a foreign intelligence operation.
Bitcoin has maintained a close relationship with technology stocks throughout the year, and the latest downturn reflected that correlation. Nasdaq 100 futures fell 1.1% over the same two-hour period.
The second development directly affected the crypto market. MSCI, a major index provider whose benchmarks influence trillions of dollars in investment assets, confirmed that Strategy would be removed from its global indexes after the November 30 market close.
MSCI concluded that Strategy more closely resembles an investment fund holding Bitcoin than a traditional operating business. Japan’s Metaplanet and Upexi are also scheduled for removal.
Index-tracking funds will be required to sell their Strategy shares following the decision. JPMorgan previously estimated that the potential selling pressure could total approximately $2.8 billion. Strategy reported that index-linked funds hold around 13 million shares, representing 3.1% of its outstanding stock. Its shares were down 1.8% ahead of Thursday’s market opening.
The implications extend beyond Strategy’s stock price. The company remains one of the largest and most consistent corporate Bitcoin buyers. Reduced demand from index-linked investors could increase the cost of raising capital, potentially restricting its ability to expand its Bitcoin holdings.
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Bitcoin ETF Outflows Reach $1.88 Billion in November
ETF withdrawals began before the Nvidia sell-off and MSCI announcement. Daily net-flow data from U.S. spot Bitcoin ETFs throughout November shows that institutional selling has intensified.
The funds recorded net outflows during seven of the eight trading sessions so far this month. November 4 was the only session to attract positive inflows, totaling $74.6 million.
Overall, Bitcoin ETFs have lost $1.88 billion in November. The latest five consecutive sessions accounted for $1.44 billion of the total withdrawals.
BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF, has dominated the outflow figures. The fund recorded $1.77 billion in withdrawals, accounting for approximately 94% of the combined net outflows across all funds.
On Wednesday, IBIT alone experienced $269.7 million in withdrawals, representing the majority of the $299.8 million in total outflows recorded by U.S. spot Bitcoin ETFs.
