Bitcoin declined approximately 0.7% on Thursday, trading near $73,400 as weakness in technology stocks and continued institutional redemptions from US spot Bitcoin exchange-traded funds pressured risk assets. Ethereum also weakened, falling around 0.5% to approximately $2,044.
The selloff followed a sharp drop in Nvidia shares during pre-market trading. Reports from The New York Times and The Wall Street Journal raised questions about CEO Jensen Huang's leadership, with Nvidia shares falling approximately 7% in pre-market trading. The company had not announced any decision regarding Huang at the time of publication.
Technology Sector Contagion Spreads to Crypto
Bitcoin's weakness underscores the close relationship between cryptocurrencies and high-growth technology stocks during periods of risk aversion. Nasdaq-100 futures declined around 0.6% as broader technology markets felt the effects of the Nvidia uncertainty. The decentralized GPU network Render also declined approximately 3.1% amid weakness in AI-related investments.
Institutional Outflows Extend Selling Streak
US spot Bitcoin ETFs recorded approximately $299.9 million in net outflows on Wednesday, according to SoSoValue, marking the fifth consecutive day of withdrawals. Cumulative outflows since November 5 have reached approximately $1.44 billion.
BlackRock's iShares Bitcoin Trust accounted for $269.7 million of Wednesday's redemptions and has now recorded nine consecutive sessions of net redemptions. Persistent institutional redemptions can weaken demand for Bitcoin and make it more difficult for buyers to absorb selling pressure.
Monetary Policy Expectations Add Headwinds
Traders are also monitoring expectations for US monetary policy. The Federal Reserve is scheduled to meet on December 8–9, with CME FedWatch data indicating markets were pricing in approximately a 90% probability of an interest rate increase. Higher borrowing costs can weigh on assets such as Bitcoin by tightening financial conditions and reducing appeal for investments that do not generate traditional interest income.
Bitcoin faces pressure from multiple directions as it trades near its daily low around $73,000. The combination of technology-sector uncertainty, persistent ETF withdrawals, and tightening monetary policy expectations has left the cryptocurrency struggling to establish momentum.
