Bitcoin (BTC) has fallen below $70,000 for the first time since August as selling pressure intensified across the cryptocurrency market. The leading digital asset declined 3.5% since midnight UTC, while total crypto liquidations surpassed $1.6 billion in the past 24 hours. A strengthening U.S. dollar and growing expectations of another Federal Reserve rate increase added to the market’s weakness.
Bitcoin and Ethereum (ETH) both reached their lowest levels in 12 weeks as investors adjusted their positions amid expectations of tighter monetary policy. Rising interest-rate forecasts pushed the dollar higher and increased bond yields, reducing the attractiveness of risk-sensitive investments such as cryptocurrencies.
Bitcoin briefly dropped to $67,770, marking its weakest price since August 19, after losing the psychologically important $70,000 level. Ethereum also extended its decline, touching $1,900 for the first time since August 18. Meanwhile, the CoinDesk 20 Index recorded a 2% decline.
The downturn occurred alongside a significant rally in the U.S. dollar. According to CME FedWatch data, traders now assign an 88% probability to a 25-basis-point Federal Reserve rate increase next month, while the likelihood of a larger 50-basis-point hike stands at 12%. These expectations followed inflation data that came in hotter than economists had anticipated.
The Dollar Index climbed above 103, reaching its highest point since April 2025. A stronger dollar generally creates additional headwinds for cryptocurrencies by making riskier investments less appealing.
Technology stocks also contributed to the negative sentiment. Nvidia shares dropped 4% following Thursday’s resignation of CEO Jensen Huang, affecting the broader technology sector. As Bitcoin frequently moves in tandem with technology stocks, weakness in major AI and semiconductor companies added another layer of selling pressure.
Crypto Liquidations Cross $1.6 Billion as Bitcoin Longs Get Wiped Out
The latest market decline triggered substantial losses among leveraged traders. CoinGlass data showed that approximately $1.64 billion in cryptocurrency positions were liquidated over 24 hours, with bullish traders accounting for nearly 88.7% of the total.
Bitcoin positions represented the largest portion of the liquidations, reaching approximately $916 million. Ethereum followed with around $289 million in forced position closures.
Institutional demand also showed signs of weakening. U.S. spot Bitcoin ETFs recorded $47.7 million in net withdrawals on Thursday, according to Farside Investors. This extended their outflow streak to six consecutive trading sessions, bringing cumulative withdrawals during that period to approximately $1.44 billion.
Investors are now turning their attention to October producer price index (PPI) figures, scheduled for release later today. Economists are forecasting a 0.4% monthly increase. The Federal Reserve is expected to hold its next policy meeting on December 8–9.
Derivatives Market Signals Aggressive Position Closures
The latest sell-off significantly increased activity across crypto futures markets. Trading volume jumped 58.3% over 24 hours to $269.1 billion, while open interest declined 4.6% to $120.2 billion. The combination indicates that traders were closing positions and reducing their exposure rather than adding fresh capital.
Total liquidations surged 513.7% to $1.64 billion, with long positions representing approximately 88.6% of the losses. Selling activity also dominated market orders, accounting for 51.9% of taker volume.
Bitcoin futures recorded approximately $916 million in liquidations, of which 95.2% involved bullish positions. Open interest declined 5.4%, compared with a 5.9% drop in Bitcoin’s price. This suggests that much of the reduction in open interest was associated with the lower market valuation rather than a major withdrawal of capital from futures positions.
Bitcoin funding rates also moved moderately into negative territory, indicating that short sellers were paying long traders to maintain their positions. The largest individual liquidation involved a $31.1 million Bitcoin long on Hyperliquid, triggered around $72,250.
Ethereum derivatives experienced comparable pressure. Approximately $289 million in ETH positions were liquidated, with long traders accounting for 89.5% of the total. Open interest declined 4.1% as Ethereum’s price fell 4.9%, suggesting a similar pattern of position adjustments. Its funding rates also turned negative.
Several alternative cryptocurrencies recorded even larger reductions in open interest relative to their price declines. Solana’s open interest fell 8.6% against a 3.6% price drop. Zcash experienced an 8% reduction in open interest while its price declined 3.8%, and Dogecoin’s open interest dropped 7.3% alongside a 3.4% price decline. These movements suggest that traders were actively exiting positions in these assets.
Negative funding rates were also visible across major cryptocurrencies, including BTC, ETH, XRP, SOL and TRX. This indicates growing demand for bearish positions, with short traders paying funding fees to maintain their exposure.
Market-order data reinforced the bearish trend. All major cryptocurrencies recorded negative cumulative volume delta (CVD), showing that aggressive selling exceeded buying activity. Bitcoin registered the weakest reading, followed by Uniswap’s UNI, Dogecoin and Sui’s SUI.
Options traders also increased their demand for downside protection. Bitcoin’s one-week 25-delta skew climbed to approximately 14%, indicating that put options were becoming more expensive than comparable call options.
One-week implied volatility briefly reached 43% before settling near 40%, suggesting that traders expected continued price fluctuations without aggressively pricing in a much larger market move. In Ethereum’s options market, the $1,800 put contract expiring November 20 attracted the highest trading volume. Its strike price was approximately 7.5% below ETH’s prevailing market value.
Altcoin Market Weakens as DeFi Tokens Face Selling Pressure
The broader altcoin market also remained under pressure, with Aave-related developments attracting attention following BTCS’s disclosure that it had sold Ethereum at a loss to protect its approximately $64 million loan from potential liquidation. CoinDesk estimates that the company’s borrowing position could face liquidation if ETH approaches $1,717.
The CoinDesk DeFi Select Index (DFX) dropped 3.5% since midnight UTC, making it the weakest-performing sector index. Aero (AERO) recorded an 8% decline, emerging as one of the poorest performers in the CoinDesk 100.
Solana slipped 2.4%, falling below $80 despite the Depository Trust & Clearing Corporation (DTCC) including the blockchain in its tokenization roadmap, with implementation targeted for 2027.
Cardano-associated privacy network Midnight (NIGHT) also experienced profit-taking, declining 5.7% after gaining 11% over the previous week.
A handful of cryptocurrencies managed to move against the broader market trend. Near Protocol (NEAR) advanced 2.6%, leading the nine gainers within the CoinDesk 100. Falcon Finance (FF) followed with a 2.5% increase, while Kite (KITE) climbed 2.2%. No clear catalysts were identified behind these advances.
CoinMarketCap’s Altcoin Season Index rose to 48 from 39 on Thursday, indicating that some alternative cryptocurrencies were beginning to outperform Bitcoin. However, the index remains below 75, the level commonly associated with the start of an altcoin season.
Meanwhile, the Crypto Fear and Greed Index remained at 19, reflecting extreme fear across the market. Persistent Bitcoin weakness, ETF withdrawals and heavy liquidations continue to undermine investor confidence and reinforce the bearish market environment.
