The cryptocurrency market experienced another sharp decline early Friday as Bitcoin slipped below $70,000 and Ethereum dropped under $2,000. The latest price weakness sparked significant liquidations across futures markets, adding to the pressure on digital assets.
Bitcoin’s sell-off intensified as the U.S. dollar advanced to its strongest level since April 2025 against a basket of major global currencies.
According to CoinDesk data, Bitcoin fell to around $69,000, marking its lowest price since August 19. The leading cryptocurrency has declined approximately 17% this quarter, giving back a substantial portion of the gains accumulated during the previous three months.
The downturn extended beyond Bitcoin. Ethereum, the second-largest cryptocurrency, fell below $2,000 for the first time since August. XRP approached the $1 level, while Solana’s SOL dropped below $80. Smaller tokens, including GT, Stacks, and XMR, also faced heavy selling, with losses reaching 7% or more.
The latest weakness coincided with a rally in the U.S. Dollar Index (DXY), which tracks the dollar against a basket of major fiat currencies. The index moved above 103, reaching its highest point since April 2025. Since early October, DXY has gained nearly 2% as expectations of further Federal Reserve rate increases have grown. A stronger dollar typically creates additional headwinds for liquidity-sensitive assets, including cryptocurrencies.
Market expectations for a 50-basis-point Federal Reserve rate hike in December have also increased following the release of hotter-than-anticipated U.S. inflation data for October earlier this week.
Geopolitical uncertainty added to the cautious mood. Media reports pointed to renewed military tensions in the Middle East after Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for destroying a U.S. early-warning radar system in Bahrain. The group described the operation as retaliation for an airstrike on a telecommunications tower in Sirik.
In comments reported by the semi-official Tasnim news agency, the IRGC characterized the attack as a serious warning to its adversaries and called for an end to what it described as repeated aerial provocations and oil smuggling through the Strait of Hormuz.
Oil prices, however, remained relatively stable. West Texas Intermediate (WTI) crude traded near $88 per barrel, slightly below Thursday’s high of $89.15.
Crypto Futures Liquidations Top $1.3 Billion
The rapid decline in cryptocurrency prices triggered a major liquidation event across derivatives markets. Coinglass data shows that exchanges forcibly closed more than $1.3 billion worth of crypto futures positions over 24 hours. Bitcoin-related liquidations accounted for approximately $677 million.
Nearly $500 million in positions were wiped out around the time BTC broke below $70,000, indicating that a large number of traders had accumulated leveraged bullish bets.
A liquidation occurs when an exchange automatically closes a leveraged position after market losses reduce the trader’s margin below the required maintenance threshold. In Bitcoin’s case, the drop beneath $70,000 likely pushed numerous long positions below their collateral requirements, forcing exchanges to close them through market sales.
The largest single liquidation involved a Bitcoin long position worth more than $31 million. The position was opened on Hyperliquid, a decentralized cryptocurrency trading platform, and represented a bullish bet on BTC’s price.
