- Bitcoin dropped 7% to $68,408, its lowest level since Aug. 20, according to The Block.
- Crypto liquidations totaled $1.47 billion in 24 hours, with $1.31 billion in long positions, per CoinGlass data reported by The Block.
- U.S. spot Bitcoin ETFs are down $1.56 billion in net outflows year-to-date, CoinDesk reported citing SoSoValue.
- The decline followed Nvidia CEO Jensen Huang’s resignation and expectations of another Federal Reserve rate hike.
Bitcoin fell sharply during Asian morning trading on Friday, plunging 7% over the past 24 hours to $68,408 as of 12:10 a.m. ET, its lowest level since Aug. 20, The Block reported. Ether dropped 6% to $1,921, while BNB slid 6.3% and XRP lost 3.5%.
The sell-off triggered significant leverage unwinding. Crypto liquidations totaled $1.47 billion over the past 24 hours, with 175,299 traders liquidated and long positions accounting for $1.31 billion of the total, according to CoinGlass data cited by The Block. Liquidations reached $798 million in just the past four hours, including $718.5 million in longs.
“The sharp leg lower in crypto looks like a leverage event as BTC broke key levels,” said Rick Maeda, head of markets at Laevitas, in comments reported by The Block. He noted that Bitcoin had already lost $72,000 in the U.S. session, and once it broke $70,000 late morning in Asia, clustered long positions were forced out quickly.
Traders continued to assess the fallout from Nvidia’s leadership shake-up. On Thursday, Jensen Huang resigned as Nvidia CEO after the company launched an investigation into his relationship with a suspected Chinese spy, The Block noted. The move weighed on risk assets, compounding expectations of another Federal Reserve interest rate hike.
Institutional demand has also weakened. U.S. spot Bitcoin ETFs are now down $1.56 billion in net outflows year-to-date, according to SoSoValue data analyzed by CoinDesk. The funds were up about $1.01 billion for the year on Oct. 29 before rapid redemptions, including $643.6 million this week through Thursday and $1.28 billion the prior week. Bitcoin’s spot price fell below $70,000 on Friday, the lowest since August, the outlet reported.
The combination of macro pressures from Nvidia’s turmoil and sustained ETF outflows has left Bitcoin vulnerable to further downside in the near term, particularly if leverage remains elevated and Fed hike expectations persist. Analysts have pointed to thin liquidity as amplifying the moves, with earlier liquidations earlier in the week already exceeding $650 million according to Bitcoin.com.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
