Crypto traders are reacting negatively to reports that AI bellwether Nvidia NVDA$173.72·Market Closed is preparing to remove CEO Jensen Huang amid controversy surrounding his affair with a suspected Chinese spy.
Perpetual futures tied to NVDA, traded on leading decentralized exchange Hyperliquid, are down nearly 12% to $160.99 at the time of writing. Perps listed on major centralized exchanges, including Binance, OKX, and Bybit, have posted similar losses.
The actual Nasdaq-listed stock closed at $173 on Wednesday, then fell more than 7% in after-hours trading.
If Hyperliquid’s price action is any indication, the stock could fall further. It has already lost substantial market value, peaking at $243 on October 6 and sliding nearly 90 degrees since.
The frenzy is reflected in cumulative trading volume for perpetual futures listed across all exchanges, which has climbed to a record high of more than $4 billion, according to data source Coinglass. Binance alone accounts for 44% of the total.
By open interest, Hyperliquid’s $HYPE-USDC perps lead with a total of $535 million at the time of writing. That makes NVDA perps the largest among all tradfi-linked markets on Hyperliquid. They are also the exchange’s fourth-largest market overall, behind only BTC, ETH, and $HYPE.
This illustrates the scale of price discovery across unregulated centralized and decentralized crypto trading venues.
Hyperliquid, in particular, has become the preferred venue this year for traders seeking exposure to traditional assets. That began with the Iran war, which started in early March. When war-related news broke over the weekend while traditional markets were closed, investors flocked to the decentralized platform to express their views on oil, gold, and equity indices.
Bitcoin, the leading cryptocurrency by market value, was trading slightly lower at around #73,650, well within its range over the past 48 hours. The cryptocurrency has sometimes shown a strong positive correlation with NVDA. Meanwhile, Nasdaq futures were down 0.75%, pointing to a partial reversal of Wednesday’s nearly 2% gain.
Nvidia turmoil
The panic began after Huang admitted on Nov. 8 to having an extramarital affair with Alice Huang, a Chinese businesswoman whom U.S. intelligence officials reportedly believed was acting on Beijing’s behalf.
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