Bitcoin Drops Toward $71,000 as Nvidia CEO Resignation Rattles Markets

Bitcoin drops — Bitcoin fell to its lowest level since late August on Thursday, dropping below $72,000 as tech stocks tumbled following the surprise resignation of Nvidia CEO Jensen Huang.

BTC/USD declined over 3.5% on the day, pushing month-to-date losses to 7.4%. The sell-off coincided with a sharp drop in Nvidia’s stock, which fell nearly 13% at the Wall Street open before paring losses to around 7% down. The company announced that CFO Colette Kress would serve as interim CEO while the board searches for a permanent successor.

Economist Mohamed El-Erian described Huang’s departure as a “significant development” with implications beyond the chipmaker. The turmoil contributed to broader market weakness, though the tech-heavy Nasdaq Composite Index managed to limit its decline to 0.6%.

Analysts are now looking ahead to Friday’s U.S. Producer Price Index (PPI) data for the next potential catalyst. Keith Alan, co-founder of Material Indicators, suggested a cooler-than-expected PPI report could flip the script bullish for Bitcoin by lowering expectations for aggressive Federal Reserve rate hikes.