Bitcoin traded near $74,700 on Monday morning after briefly dropping to $73,477 overnight, marking its lowest level since August. Buyers entered the market soon after the decline, helping the price recover above $75,000, but the momentum faded and bitcoin settled near $74,700 as US markets opened.
Nvidia investigation and Middle East tensions pressure crypto markets
The cryptocurrency market faced significant volatility as two major events unfolded during the weekend. Nvidia, a leading American chipmaker at the center of the artificial intelligence surge, became subject to an internal investigation regarding potential foreign intelligence targeting of CEO Jensen Huang. Meanwhile, US Secretary of State Marco Rubio described Iran’s latest demands as “outrageous,” leading to a stall in policy discussions.
Nvidia serves as a bellwether for the AI and technology-driven risk asset rally in 2026. Many traders saw the probe as escalating sector-wide uncertainty. Leveraged positions in the crypto market suffered considerable losses, resulting in the liquidation of over $1 billion in positions within 24 hours. Of these, around $913 million came from long positions, sharply accelerating the price drop before providing space for a fragile rebound.
In contrast to the turmoil in digital assets, US equity index futures showed an effort to recover. Dow futures rose 0.73%, S&P 500 futures gained 0.40%, and Nasdaq 100 futures edged up 0.21% by early morning. Nvidia shares fell 4.5% in premarket trading, and other semiconductor names declined after the Philadelphia Semiconductor Index suffered its largest weekly fall since March 2025.
This divergence between crypto and stock markets has repeated across recent sessions, echoing Friday’s muted response by bitcoin to a strong jobs report and last Thursday’s sell-off in tech stocks, which triggered further liquidations of leveraged crypto positions.
Mini dictionary: Nvidia, headquartered in California, is a leading global designer of graphics processing units (GPUs) and has become central to artificial intelligence and high-performance computing, impacting both tech stocks and broader risk asset sentiment.
Regulatory anxiety and ETF outflows weigh on bitcoin
Regulatory concerns in Washington have further pressured the bitcoin price. Reuters reported that renewed fears of stricter crypto regulation have emerged after last week’s midterm elections and the $6 billion security incident at Binance. The possibility of a Democratic-controlled Congress toughening oversight has entered investor calculations.
Senator Elizabeth Warren, known for her strong criticism of cryptocurrencies, is expected to lead the Senate Banking Committee. Research by TD Cowen suggests that the Democratic sweep makes the passage of a crypto-backed CLARITY Act unlikely, while House Democrats are drafting a new market structure bill that could expand the Securities and Exchange Commission’s role in digital asset oversight.
Senator Elizabeth Warren is positioned to chair the Senate Banking Committee, raising expectations for increased crypto regulation. TD Cowen analysts indicated this political shift would make it nearly impossible to pass the crypto-backed CLARITY Act and predicts a more active SEC role in the future.
Institutional investors also pulled back, with US spot bitcoin ETFs posting outflows of $1.28 billion last week, according to market data. This marked their second consecutive week of net redemptions, and the largest since late June. Analysts noted that these redemptions have contributed to bitcoin’s failure to follow the rebound seen in stock indices.
| Market Event | Impact | Bitcoin Price Movement | Redemptions |
|---|---|---|---|
| Nvidia probe | Technology sell-off and increased risk aversion | Dropped to $73,477 before partial recovery | — |
| ETF outflows | Institutional pullback | Sustained weakness near $74,700 | $1.28 billion last week |
| Regulation fears | Policy uncertainty | Weighed on buying sentiment | — |
Market outlook: Upcoming inflation data and key technical levels
All eyes now turn to Tuesday, when October consumer price index data is due. Economists expect headline inflation to rise 0.3% from the previous month, easing from 0.6% recorded in September. Based on market futures, the probability of a Federal Reserve rate hike at the December 8–9 meeting has climbed to about 80% after the strong October jobs figures.
Options traders are anticipating more market swings, as one-week implied volatility in bitcoin jumped to around 43% from 33% last Thursday. Four out of the six most active bitcoin options contracts are currently puts, with strike prices between $70,000 and $72,000, indicating many investors are bracing for potential downside movement.
Technical analysis shows bitcoin is currently squeezed between its 200-day moving average, providing support near $73,150, and its 100-day moving average, acting as resistance near $77,430. A decisive move below support could put the August lows back in focus, while a move towards resistance would likely require improved sentiment around Nvidia’s situation and softer inflation numbers.
Bitcoin remains vulnerable, as it trades between major moving average levels. A close below $73,150 would likely renew pressure toward previous lows, while any move higher may need a positive turn in macro headlines and reduced volatility linked to Nvidia and inflation data.
At the latest check, bitcoin was trading near $74,700.
