Bitcoin Drops to $71,000 Range for First Time in 12 Weeks as Jensen Huang Resigns, Rate Fears Mount

Nvidia management turmoil dents risk appetite

Inflation and rising Treasury yields add selling pressure

Bitcoin fell into the $71,000 range for the first time since August as uncertainty around the AI industry deepened after Nvidia Chief Executive Officer Jensen Huang resigned. Pressure from rising U.S. inflation and interest rates added to the decline. Unlike U.S. stocks, which recouped much of their early losses, the crypto market remained under pressure.

Bitcoin traded at $71,478.45 on Binance's Tether market on Nov. 12, down 3.50% from 24 hours earlier. It was the first time in about 12 weeks that Bitcoin had fallen below $72,000 and slipped into the $71,000 range.

Nvidia said on Nov. 12 that Huang had resigned effective immediately as president, chief executive officer and board member. Chief Financial Officer Colette Kress will serve as interim CEO. The founder's abrupt departure heightened management uncertainty.

Nvidia shares plunged more than 13% intraday on Nov. 12 before paring losses to close down 4.34%. The Nasdaq Composite fell 0.39%. Bitcoin came under selling pressure after the U.S. market open and dropped below $72,000. Huang's departure, combined with the removal of crypto-related companies from MSCI indexes, appears to have pushed Bitcoin to its lowest level in about 12 weeks.

U.S. inflation data also weighed on Bitcoin. The October consumer price index, released on Nov. 10, rose 0.4% from a month earlier, above the market forecast of 0.3%. Core CPI, which excludes food and energy, also increased 0.3%, exceeding expectations for a 0.2% gain. Persistently elevated inflation increased caution over the prospect of further tightening by the Federal Reserve.

The yield on the 10-year U.S. Treasury rose to 5.12% on Nov. 12. Brent crude gained 3.3% to $95.82 a barrel after U.S. President Donald Trump said an agreement with Iran was unnecessary. Louis Huang, an analyst at Bitget, said higher Treasury yields and a stronger dollar could intensify recent selling pressure on Bitcoin.

Strategy's removal from an MSCI index also weighed on sentiment. MSCI decided to exclude Strategy from its U.S. index. The change will take effect after the market closes on Nov. 30. Anticipated selling by index-tracking funds is also adding pressure to Bitcoin-related stocks.

Jasper Demaere, an over-the-counter trader at Wintermute, said there was no clear sign of large-scale buying at current price levels. The trend could shift if ETF flows turn to net inflows for several consecutive days.