Summary

  • Hyperliquid’s NVDA-USDC perpetual futures linked to Nvidia shares fell 3.8% over 24 hours after news of the investigation involving CEO Huang.
  • Dan Kus and Rick Maeda said the drop in Nvidia perpetual futures reflected risk-off sentiment, leverage and crypto platforms’ early pricing in of market moves.
  • Maeda and Dominic John said key variables include uncertainty tied to the board probe, a broader U.S. congressional investigation, tighter regulation of China-related business and the possibility of a short-term rebound if short positions become overcrowded.

Forecast Trend Report by Period

Nvidia stock-linked futures in the crypto derivatives market fell after the company opened an investigation into allegations involving Chief Executive Officer Jensen Huang and a foreign intelligence agency.

The NVDA-USDC perpetual futures contract, which tracks Nvidia shares on decentralized derivatives exchange Hyperliquid, traded at $180.50 as of 10:10 p.m. Eastern time on Nov. 8, down 3.8% from 24 hours earlier, The Block reported. Trading volume over the same period was about $170 million.

The contract began falling at around 4 p.m. and slid to about $178.10 before recovering some of the losses. Earlier, Nvidia’s board announced it would open its own investigation after reports said Huang had been targeted in an intelligence-gathering operation involving a foreign agency.

The probe followed reports about Huang’s relationship with a woman suspected of ties to Chinese intelligence officials. The New York Times reported that documents shared among U.S. policymakers raised allegations that Chinese businesswoman Alice Huang had been recruited by China’s Ministry of State Security and had gathered information on Huang. Nvidia’s board said it had no basis to conclude that national security or company secrets had been compromised, but would verify the facts.

Huang acknowledged an extramarital relationship and apologized in an internal letter to employees. He also wrote that he would fully cooperate with the board’s investigation into the national-security allegations. Nvidia said Huang would remain in the role and continue his executive duties.

Major cryptocurrencies also traded lower. Bitcoin fell 0.8% to $75,113, while Ether dropped 4.2% to $2,140. By contrast, U.S. stock-index futures rose, with S&P 500 futures up 0.6% and Nasdaq 100 futures gaining 0.7%. Major Asian equity markets also moved higher.

Dan Kus, chief analyst at LVRG Research, said the decline in Nvidia perpetual futures reflected a broader move away from risk assets and that leveraged positions may have amplified the swings. Rick Maeda, market director at Levitas, said crypto trading platforms such as Hyperliquid reflected the move before the U.S. cash equity market, which was closed.

Maeda said uncertainty could persist while the board investigation continues. An expansion of any U.S. congressional inquiry, tighter regulation of China-related business and the possibility of management changes could become key variables. Dominic John, an analyst at Zeus Research, added that a short-term rebound is also possible after U.S. stocks stabilize if short positions become overly crowded.

Suehyeon Lee