Bitcoin Sinks Below $73,000 on Fresh AI Jitters, Tighter Fed Policy — Update
By Joseph WilkinsBitcoin fell below $73,000 on Thursday after jitters around the artificial intelligence trade resurfaced, while index provider MSCI announced it was removing bitcoin treasury firm Strategy from its benchmarks.The flagship cryptocurrency had recovered some ground on Wednesday, but that reversed after news that chipmaker Nvidia is preparing to oust Chief Executive Officer Jensen Huang.Bitcoin was 2% lower at $72,848, moving broadly in line with the direction of Nasdaq futures.Meanwhile, Strategy, the world's largest corporate bitcoin holder, will no longer be a part of MSCI's global benchmarks from the end of this month, after the index provider set out new eligibility rules Wednesday.MSCI has ruled that firms without substantial operating assets now count as "nonoperating," making them ineligible for its global indexes from Nov. 30.Investors tracking benchmarks provided by firms like MSCI are forced to sell assets dropped by such index providers, meaning Strategy's exit opens the door to an exodus of passive fund money at the end of the month. Other index providers could follow suit with their own rulings, potentially putting Strategy stock under selling pressure. Its shares were 1.7% lower in after-hours trading.Weak momentum is also pressuring bitcoin. U.S. spot bitcoin ETFs posted single-day outflows of almost $300 million on Nov. 11, which signals sluggish institutional demand, according to cryptocurrency trading firm Bitget. "The broader digital asset market remains under pressure due to persistent inflation concerns and anticipation of a tighter monetary policy by the Federal Reserve," said Bitget CEO Gracy Chen.Ether was 2.2% lower at $2,022.83.Write to Joseph Wilkins at [email protected]