Bitcoin Extends Losses as Dollar Index Climbs to 19-Month High

Bitcoin extended its losses early Friday, falling below $70,000 and pulling the broader cryptocurrency market into another sharp downturn. Ethereum also slipped beneath $2,000, while the sudden decline triggered substantial liquidations across crypto futures exchanges.

The sell-off unfolded as the U.S. dollar strengthened considerably, reaching its highest level since April 2025 against a basket of major fiat currencies.

CoinDesk data shows that Bitcoin briefly touched $69,000, marking its weakest price since August 19. BTC has now lost approximately 17% during the current quarter, giving back a significant portion of the gains recorded over the preceding three months.

The weakness was not limited to Bitcoin. Ethereum dropped below $2,000 for the first time since August, XRP moved closer to the $1 threshold, and Solana’s SOL fell beneath $80. Several smaller cryptocurrencies, including GT, Stacks, and XMR, also declined by 7% or more.

The U.S. Dollar Index (DXY), which measures the dollar against a basket of major currencies, advanced beyond 103 to reach its highest reading since April 2025. The index has gained nearly 2% since early October as expectations of further Federal Reserve rate increases have grown. A stronger dollar can restrict liquidity conditions and reduce investor appetite for riskier assets such as cryptocurrencies.

Market participants have also raised their expectations of a 50-basis-point interest rate hike in December. The shift followed the release of October’s U.S. Consumer Price Index (CPI), which came in hotter than economists had anticipated.

Geopolitical developments have added another source of uncertainty. Reports of renewed military escalation in the Middle East emerged after Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed it had destroyed a U.S. early-warning radar system in Bahrain. The group said the operation was a response to an airstrike targeting a telecommunications tower in Sirik.

The IRGC, in statements reported by the semi-official Tasnim news agency, described the incident as a serious warning to its adversaries. It also called for an end to what it characterized as repeated aerial provocations and oil smuggling through the Strait of Hormuz.

Meanwhile, crude oil prices remained relatively stable despite the geopolitical developments. West Texas Intermediate (WTI) traded around $88 per barrel, slightly below Thursday’s high of $89.15.

Crypto Futures Liquidations Surpass $1.3 Billion

Bitcoin’s sharp decline triggered a major liquidation event across cryptocurrency derivatives markets. Data from Coinglass shows that more than $1.3 billion in crypto futures positions were forcibly closed within 24 hours. Bitcoin alone accounted for approximately $677 million in liquidations.

Nearly $500 million worth of positions were wiped out around the time BTC breached $70,000, highlighting the significant amount of leveraged bullish exposure in the market.

Leveraged positions are liquidated when an exchange automatically closes a trade after losses reduce a trader’s margin below the required maintenance level. Bitcoin’s move beneath $70,000 likely pushed numerous long positions beyond their collateral limits, prompting exchanges to close them and generate additional selling pressure.

The largest single liquidation involved a Bitcoin long position valued at more than $31 million. The trade was placed on Hyperliquid, a decentralized trading platform, and represented a leveraged bet on further BTC price gains.