Sudden swings in cryptocurrency prices have triggered another wave of leveraged liquidations, wiping out more than $1 billion in trader positions as market uncertainty intensified.
Bitcoin (BTC) experienced considerable price fluctuations over the past several hours, exposing traders to the risks of leveraged trading. The market turmoil followed two major developments that unsettled investors: controversy surrounding Nvidia CEO Jensen Huang and reports that diplomatic negotiations between the United States and Iran had stalled.
Huang reportedly acknowledged an affair with a woman whom U.S. officials suspect of having links to Chinese intelligence. Separately, U.S. Secretary of State Marco Rubio said discussions with Iran had made little progress.
Since traditional financial markets were closed over the weekend, cryptocurrency markets became an early testing ground for investor reactions to the developments. Digital assets initially came under pressure as traders reduced exposure to riskier investments.
Bitcoin and Ether Volatility Triggers $1B in Liquidations
Bitcoin dropped to approximately $73,761 late Sunday, reaching its lowest level since August before recovering above $75,000, according to CoinDesk data.
Ether (ETH) followed a similar pattern, falling below $2,100 before recovering to approximately $2,144. The sharp price reversals triggered significant losses across leveraged futures markets.
CoinGlass data showed that cryptocurrency liquidations exceeded $1 billion over 24 hours, with most forced closures occurring within the final six hours of the period.
Traders holding bullish positions absorbed the majority of the damage. Long liquidations reached approximately $913 million, indicating that investors positioned for higher prices suffered the largest losses during the downturn.
Ether recorded the highest liquidation volume among major cryptocurrencies, with approximately $448 million in positions wiped out. Bitcoin liquidations totaled around $272 million.
The largest individual liquidation involved an Ether position valued at approximately $48 million, highlighting the extent of leverage-related risks during periods of extreme volatility.
Nvidia Controversy Adds Pressure to Risk Assets
Nvidia’s board has launched an independent investigation following reports concerning CEO Jensen Huang’s alleged relationship with Alice Huang, a business executive whom U.S. intelligence agencies reportedly suspect of passing information to China.
Huang addressed the allegations in a message to employees, acknowledging that he had been unfaithful to his wife and apologizing for the consequences.
Nvidia said it had not identified evidence indicating that sensitive company information or national security secrets had been exposed. Nevertheless, the board has initiated a review involving independent external legal advisers to examine the available information.
The controversy has broader implications for financial markets because Nvidia remains one of the biggest beneficiaries of the artificial intelligence boom. Its business has played a major role in driving investor enthusiasm for AI-related stocks and encouraging risk-taking across multiple asset classes, including cryptocurrencies.
The company also occupies a critical position in the technological competition between the United States and China.
Washington has restricted Chinese access to Nvidia’s most advanced AI chips. Meanwhile, Megaspeed, a company reportedly associated with Alice Huang, has faced allegations of assisting restricted Chinese companies in obtaining Nvidia processors.
The developments have already affected tokenized versions of traditional equities.
NVDAX, Nvidia’s tokenized stock listed on the xStock platform, declined 3.55% over the previous 24 hours to $180.42.
Nvidia shares had closed Friday’s Nasdaq session at $186.64. The lower valuation of its tokenized counterpart suggests that crypto traders are anticipating potential weakness when U.S. equity markets reopen.
Broader concerns about the AI investment boom have also weighed on sentiment. The Nasdaq Composite declined nearly 5% last week, extending its losing streak to four consecutive weeks as investors reassessed technology stock valuations.
Stalled U.S.-Iran Talks Increase Geopolitical Risks
Geopolitical uncertainty has added another challenge for cryptocurrency investors.
Secretary of State Marco Rubio described Iran’s negotiating demands as “outrageous” and indicated that diplomatic discussions had failed to deliver meaningful progress.
The lack of progress has heightened concerns about renewed tensions in the Middle East.
Such developments can influence cryptocurrency prices through their impact on energy markets. Rising geopolitical tensions often push oil prices higher, increasing inflation concerns and encouraging investors to move away from risk-sensitive assets.
Bitcoin has struggled to consistently act as a safe-haven asset during the ongoing Iran conflict, which began in March. Instead, its price has frequently weakened during periods of rising oil prices, reflecting its sensitivity to broader market risk.
Bitcoin’s Recovery Faces Resistance Near $77,430
Bitcoin’s rebound above $75,000 provided temporary relief after Sunday’s decline. However, the recovery appeared to be losing momentum at the time of writing.
The direction of traditional financial markets on Monday could play an important role in determining Bitcoin’s next move. Investors will closely monitor the reaction to the Nvidia controversy and developments surrounding U.S.-Iran negotiations.
Technically, Bitcoin remains positioned between two important moving-average levels.
The 200-day moving average, located near $73,150, represents a key support zone. On the upside, the 100-day moving average around $77,430 stands as the next major resistance.
A break below the 200-day average could increase selling pressure, while a sustained move above the 100-day average may improve the outlook for a potential recovery.
