Bitcoin (BTC) fell to approximately $71,176 today. This is its lowest level in nearly three months. After recording this new low, it is trading around $71,833 at the time of writing. This week, BTC has lost almost 6.84% of its value. Today decline coincides with a sharp sell-off in Nvidia shares following the immediate resignation of co-founder and CEO Jensen Huang.
Bitcoin Faces Additional Pressure From Market Weakness
Bitcoin was trading near $73,000 earlier today but it couldn’t hold the level. The latest decline has extended its weakness as it has lost the daily 200MA support today.
Amid the crash. A total of $734.84 million has been wiped out from the crypto market. $293 million has been shed from $BTC only (91% were long positions). Fear and greed index currently stands at 29 (fear), as per Coinglass data.
The weakness in traditional markets is coinciding with continued pressure on Bitcoin. Cryptocurrencies have tendency to move alongside technology stocks and other risk-sensitive assets. This makes them vulnerable to shifts in investor sentiment.
Leveraged trading activity has also contributed to the volatility seen today. When Bitcoin moves lower, traders holding leveraged long positions face forced liquidations. These liquidations generate additional selling pressure which ultimately accelerate price declines.
Nvidia CEO Resignation Triggers Fresh Market Uncertainty
Nvidia has officially announced that Jensen Huang has resigned, effective immediately. The company has appointed Chief Financial Officer Colette Kress as interim CEO. The leadership change followed reports concerning Huang’s personal relationships. He was found involved in 2 separate women, a reported Chinese spy and his secretary.
The allegations raised potential national security concerns. Nvidia shares fell sharply following the announcement. Nvidia shared have dropped 38% after the initial news surfaced about his affairs a few days ago.
The uncertainty has now also affected other technology and AI-related stocks. US markets opened weak. The Nasdaq and S&P 500 have recorded declines during the morning trading session.
