Major Cryptocurrencies Decline Amid Nvidia Investigation

On Monday, November 9, major cryptocurrencies experienced a notable decline, largely influenced by an investigation launched by Nvidia’s board concerning allegations of foreign intelligence efforts targeting its CEO, Jensen Huang. This development contributed to a downturn in chip and technology shares across the market.

As of 2:31 a.m. ET, Bitcoin was trading at approximately $73,900, reflecting a decrease of 2.5% within a 24-hour frame and a significant drop of 12.2% over the preceding four weeks, according to CoinGecko.

This cryptocurrency touched a 28-day low of $73,477 on Coinbase just after 4:55 p.m. ET on Sunday. In a similar vein, Ether was priced at $2,087.31, representing an 18.8% decline over the past 28 days and an 8.6% decrease over the last week.

  • The development: The cryptocurrency market saw a downturn on November 9, triggered by Nvidia’s board’s decision to conduct an independent probe into claims that CEO Jensen Huang was targeted by foreign intelligence.
  • The statistics: Bitcoin hovered around $73,900, marking a 12.2% drop over four weeks following a low of $73,477 on Coinbase on November 8.
  • Future implications: Republican lawmakers have summoned Huang to testify before Congress on November 18, as Nvidia’s board continues its review.

Nvidia’s Board Initiates Intelligence Inquiry

Nvidia’s board has announced an independent investigation “in light of recent reports that founder and CEO Jensen Huang has been the subject of foreign intelligence activities.”

A committee comprising independent directors, together with external counsel, will oversee the inquiry.

In its official statement, the board asserted it had “no reason to believe that national security or NVIDIA’s proprietary information was compromised,” adding that the investigation would “assess all available data.” Huang has expressed his full endorsement of the review, pledging his cooperation.

The initial allegations were brought to light in a New York Times investigation conducted late last month, which indicated that U.S. intelligence officials believed an executive, Alice Huang, had been purportedly recruited by Beijing to extract information regarding Nvidia’s chief executive, potentially to influence chip sales to China.

The circumstances surrounding Huang’s awareness of any such undertakings, the nature of the information collected, and the implications of this reaching Beijing remain unanswered.

Huang has admitted to personal misconduct via a memorandum to his staff. Former President Donald Trump has publicly defended Huang’s character, labeling him an “honourable guy,” while Chinese foreign ministry spokesperson Guo Jiakun has deemed the “alleged Chinese espionage narrative” as unfounded.

Concurrently, Nvidia’s stock plummeted by more than 4% during the overnight trading session leading into Monday, within a market capitalization of $4.5 trillion.

Liquidations Exceed $1.14 Billion in Just One Day

According to data from CoinGlass, leveraged positions exceeding $1.14 billion were liquidated within a 24-hour period, with long positions constituting approximately 90% of these liquidations. Bitcoin saw about $305 million in liquidations, while open interest recorded a slight dip of 0.2%.

Moreover, futures trading volume surged over 200% in the last 24 hours, totaling $180 billion, while open interest declined around 3% to $127 billion. Only five of the top 100 cryptocurrencies by market capitalization exhibited gains exceeding 1%.

All Major Digital Assets Decline

According to a comparative analysis from CoinGecko, all seven scrutinized assets—Bitcoin, Ether, BNB, XRP, Solana, Dogecoin, and Cardano—saw declines within a 24-hour window.

XRP fell by 6.6% and Ether by 6.5%, while Solana, Dogecoin, and Cardano experienced declines ranging from 4.1% to 4.4%; BNB decreased by 3.2%.

The implied volatility for Bitcoin over the course of one week surged to 43%, an increase from approximately 33% the previous Thursday; Ether’s volatility also rose to around 60%, up from 46%.

Ether Dips Below Its 200-Day Average

Ether closed below its 200-day moving average on Sunday for the first time since August 18, subsequently dipping to the $2,100 level.

Its 28-day decline of 18.8% outpaced Bitcoin’s 12.2% over the same timeframe, with a 7-day slide of 8.6% compared to Bitcoin’s 5.4%.

The digital asset market exhibited signs of weakness amid concerns that U.S. technology stocks may continue their downward trend, which has disproportionately impacted larger cryptocurrencies.

Congress Calls for Huang’s Testimony on November 18

Republican lawmakers have formally requested Huang to appear before Congress on November 18, contending that the allegations pose significant concerns regarding China’s potential access to sensitive U.S. technology.

Nvidia’s board has indicated that the inquiry, conducted by the committee of independent directors alongside outside counsel, will scrutinize all pertinent information, setting this date as a crucial benchmark for the company and the broader crypto market’s risk appetite.

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