Renewed selling across the technology sector weighed heavily on risk assets on Thursday, pulling Bitcoin down alongside Nvidia as persistent withdrawals from US spot Bitcoin exchange-traded funds added further market pressure.
Trading near its daily low, BTC dropped roughly 0.7% from midnight UTC to approximately $73,400. Ethereum also experienced losses, dipping about 0.5% to trade near $2,044.
This downturn followed a sharp pre-market sell-off in Nvidia shares. The combination of tech-sector weakness and ongoing institutional redemptions has made it difficult for Bitcoin to regain traction, despite an earlier equities recovery in the week.
Nvidia Sell-Off Spills Over Into Crypto Markets
Investor attention focused heavily on Nvidia following news reports that questioned the company’s leadership. The New York Times detailed an alleged relationship involving CEO Jensen Huang and a corporate executive, while The Wall Street Journal reported that the board was moving to oust him.
In pre-market trading, Nvidia shares dropped roughly 7% on the heels of these reports. At the time of publication, the company had not announced any official decisions regarding Huang.
The broader technology sector felt the impact of this uncertainty as well. Nasdaq-100 futures slid roughly 0.6%, surrendering a portion of the gains they achieved Wednesday following better-than-expected earnings from AI cloud-computing firm CoreWeave.
Bitcoin’s movement underscores the tight correlation that can form between digital assets and high-growth technology stocks during times of heightened risk aversion. When investors pull back from tech and AI enterprises, cryptocurrencies often face similar sell-offs. For instance, the decentralized GPU network Render dropped roughly 3.1% as Nvidia’s struggles dragged down sentiment across AI-focused investments.
Bitcoin ETF Outflows Extend to Fifth Consecutive Day
Institutional fund flows present another hurdle for Bitcoin. Data from SoSoValue shows that US spot Bitcoin ETFs registered roughly $299.9 million in net outflows on Wednesday, marking their fifth straight session of withdrawals.
Total cumulative outflows since November 5 have now reached approximately $1.44 billion.
BlackRock’s iShares Bitcoin Trust (IBIT) drove $269.7 million of Wednesday’s redemptions, marking its ninth consecutive session of net outflows and demonstrating that the selling pressure spans beyond smaller investment vehicles.
These ongoing ETF outflows are significant because such funds have established themselves as a primary vehicle for institutional Bitcoin exposure. Sustained redemptions erode demand and make it harder for buyers to absorb incoming supply.
Fed Expectations and Economic Data Keep Traders Cautious
Alongside Nvidia and ETF dynamics, market participants are keeping a close eye on the trajectory of US monetary policy.
With the Federal Reserve gathering on December 8–9, CME FedWatch metrics indicate that markets have priced in a roughly 90% chance of an interest rate increase. Elevated borrowing costs can hurt assets like Bitcoin by tightening overall financial conditions and diminishing the allure of non-yield-generating investments.
Traders were also monitoring upcoming initial jobless claims data, while potential announcements from Nvidia’s board remained an ongoing wildcard for market volatility.
Bitcoin Faces Renewed Pressure Near $73,000
Bitcoin’s drift toward $73,400 illustrates the cryptocurrency’s difficulty in mounting a meaningful recovery after recent declines. The market must contend with multiple headwinds simultaneously, including technology sector turbulence, continuous ETF withdrawals, and tighter monetary policy expectations.
Trading near its daily low, the $73,000 region serves as a crucial near-term threshold to watch. A decisive break lower could entrench bearish momentum, especially if institutional outflows persist.
Conversely, a rebound in tech equities alongside a tapering of ETF redemptions could help restore demand. For the moment, however, neither factor has offered a definitive sign that the selling pressure is subsiding.
Will Bitcoin manage to defend the $73,000 area as Nvidia shares remain under pressure? And could another week of ETF outflows push BTC toward lower support levels?
Written by
Yuki Yamamoto
