Bitcoin Dips Below $70K as Nvidia CEO Departs and Inflation Fears Resurface

Market Plunge Amidst Nvidia Drama and Inflation Fears

The week began with anticipation of significant macroeconomic events poised to shake financial markets. While some materialized as expected, the dramatic unfolding of the Nvidia CEO saga, which rapidly escalated and triggered substantial volatility across all financial sectors, was largely unforeseen.

Bitcoin’s Steep Decline

Before delving into the week’s eventful developments, a brief recap of the starting point is in order. As detailed in last Friday’s Market Update, Bitcoin (BTC) was already facing headwinds. The post-election rally had abruptly stalled at $81,000, sending the asset plummeting to an 11-week low of just under $75,000.

The weekend offered little respite, with BTC trading sideways between $75,500 and $76,000. Monday morning saw a further significant downturn, with the price dropping to $73,500. Following an unsuccessful attempt at recovery later that day, market attention shifted to Tuesday’s Consumer Price Index (CPI) data. The figures, which exceeded expectations with a slightly higher month-over-month increase, led to another fall for Bitcoin, this time below $73,000.

Bulls attempted another recovery, but it faltered at $74,800. The subsequent decline proved even more severe. Potentially exacerbated by the unfolding drama surrounding Nvidia CEO Jensen Huang and his eventual departure, Bitcoin experienced a sharper fall than many other assets, continuing its plunge over the preceding 24 hours.

The week’s nadir, at least for now, occurred this morning with a drop to $67,500, marking the asset’s lowest price point in nearly three months. This represented a loss of over $13,000 in value in less than 10 days.

Despite a subsequent $1,000 rebound, the leading cryptocurrency remains down by over 10% on a weekly basis. This decline follows an already significant downturn from the previous week. Many altcoins have fared even worse, with notable drops including ZEC (-31%), ETH (-14%), XRP (-15%), SOL (-13%), ENA (-20%), and UNI (-17.5%).

An exception to the widespread losses was ICP, which gained 4.8%, and WLFI, which also saw a slight weekly increase.

Cryptocurrency Market Overview Weekly – November 13
Source: QuantifyCrypto
Market Cap: $2.435T | 24H Vol: $100B | BTC Dominance: 56.7%
BTC: $68,700 (-10%) | ETH: $1,935 (-14%) | XRP: $1.02 (-15%)

Bitcoin Retail Capitulation Signals Potential Bottom

Days before the recent capitulation below $68,000, on-chain data suggested that Bitcoin might be approaching a local bottom. The Fear and Greed Index had plunged into “extreme fear” territory, coinciding with a significant exodus of retail investors from the market.

Bitcoin Core Nodes Face Block Building Challenges

A critical bug affecting block creation has been flagged by Bitcoin Core. The issue, which arises after reorganizations, could potentially prevent miners from producing blocks until nodes are restarted. The flaw impacts several node versions and leads to mempool inconsistencies during chain reorganizations.

Coinbase Secures National Trust Bank Charter

Following in the footsteps of crypto firms like Circle and Ripple, Coinbase has received full approval for its national trust bank charter from the Office of the Comptroller of the Currency (OCC). This authorization allows Coinbase to operate as a federal trust bank, expanding its service offerings.

Younger Congress Could Benefit Crypto

The recent Democratic sweep in Congress has raised concerns within the crypto industry regarding future regulatory landscapes. However, some analysts, like Matt Hougan, believe that a younger cohort of policymakers taking charge could ultimately prove beneficial for the sector.

Accumulation Trends Emerge Amidst Market Downturn

In a more positive development to conclude the week’s market update, accumulation trends are visible. Tom Lee’s Bitmine has acquired over 9,500 ETH, increasing its holdings to more than 6,070,000 tokens.

Separately, MicroStrategy’s Bitcoin holdings have reached a new all-time high following a purchase of 1,037 BTC. The company also repurchased $188 million worth of STRC. MicroStrategy’s total Bitcoin holdings now exceed 850,360 units.

This week’s analysis also includes a chart review of Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid.