I woke up to find the AI world turned upside down: Jensen Huang has resigned. According to Nvidia’s official announcement, the board accepted his resignation on November 11. He stepped down as president, CEO, and director, effective immediately, with CFO Colette Kress taking over on an interim basis. After 33 years at the helm, the handover happened overnight. The news sent Nvidia shares plunging as much as 13% intraday, below $150. By the close, losses had narrowed to 4%, with shares at $166.19 and the market cap barely holding above $4 trillion. The interesting part: retail investors were net buyers of $111 million in the first 30 minutes after the opening bell—40 times the usual amount. They had far more nerve to buy the dip than institutions.
The crypto world was busy that same day, too: MSCI announced it would remove Strategy from its Global Standard Index, effective after the market close on November 30. Funds tracking the index will have to sell MSTR. Bitcoin fell along with it, hitting $71,238, a 12-week low. Spot ETFs have seen $1.44 billion in outflows over five consecutive days, while BlackRock’s IBIT has logged seven straight days of outflows. For the first time this year, cumulative flows have turned negative. More than two years after ETFs launched, this is the first time they’ve seen net outflows for the year.
My take: These two events may look unrelated, but they’re connected. The market is repricing the premium investors place on belief. Part of Nvidia’s high valuation came from the Jensen Huang premium; part of Strategy’s market cap came from its Bitcoin-treasury premium. Both premiums are now being challenged at the same time. Ming-Chi Kuo says the short-term impact could be a case of the bad news already being priced in, but the effects of the succession may not show up until 2028 at the earliest. In other words, this isn’t over. Next week’s earnings call on November 17 will be the real test.
The connection to your wallet is pretty straightforward, too: someone like me, carrying debt, dreads days when these kinds of narratives start to unravel. AI-themed coins have been riding the Nvidia narrative for the past two years; when the leader wobbles, the themed coins are the first to shake. On the Bitcoin side, ETFs are bleeding, and the $70,000 level is being tested. If you’re holding a position, first work out your repayment dates and how many waves of volatility you can handle before deciding whether to buy the dip.
Do you think this is a turning point for the AI narrative, or just a case of the bad news being priced in?
$BTC $TAO $FET
This is not investment advice. Make your own judgment.
The crypto world was busy that same day, too: MSCI announced it would remove Strategy from its Global Standard Index, effective after the market close on November 30. Funds tracking the index will have to sell MSTR. Bitcoin fell along with it, hitting $71,238, a 12-week low. Spot ETFs have seen $1.44 billion in outflows over five consecutive days, while BlackRock’s IBIT has logged seven straight days of outflows. For the first time this year, cumulative flows have turned negative. More than two years after ETFs launched, this is the first time they’ve seen net outflows for the year.
My take: These two events may look unrelated, but they’re connected. The market is repricing the premium investors place on belief. Part of Nvidia’s high valuation came from the Jensen Huang premium; part of Strategy’s market cap came from its Bitcoin-treasury premium. Both premiums are now being challenged at the same time. Ming-Chi Kuo says the short-term impact could be a case of the bad news already being priced in, but the effects of the succession may not show up until 2028 at the earliest. In other words, this isn’t over. Next week’s earnings call on November 17 will be the real test.
The connection to your wallet is pretty straightforward, too: someone like me, carrying debt, dreads days when these kinds of narratives start to unravel. AI-themed coins have been riding the Nvidia narrative for the past two years; when the leader wobbles, the themed coins are the first to shake. On the Bitcoin side, ETFs are bleeding, and the $70,000 level is being tested. If you’re holding a position, first work out your repayment dates and how many waves of volatility you can handle before deciding whether to buy the dip.
Do you think this is a turning point for the AI narrative, or just a case of the bad news being priced in?
$BTC $TAO $FET
This is not investment advice. Make your own judgment.