Bitcoin Sell-Off Intensifies as $1.6B in Leveraged Positions Get Liquidated

Bitcoin (BTC) continued its downward trend on Friday, breaking below $70,000 for the first time since August as another round of selling swept through the cryptocurrency market. BTC dropped 3.5% from the start of the UTC day, while total liquidations across the market climbed above $1.6 billion within 24 hours. Rising expectations of tighter U.S. monetary policy and renewed dollar strength further undermined investor confidence.

Ethereum (ETH) also faced heavy selling, with both leading cryptocurrencies touching their lowest prices in nearly three months. Traders have increasingly factored in another Federal Reserve rate increase in December, sending Treasury yields and the dollar higher while reducing demand for riskier assets.

Bitcoin reached an intraday low of $67,770 after losing the important $70,000 level. The decline pushed BTC to its weakest price since August 19. Ethereum followed the same direction, falling to $1,900, its lowest level since August 18. The CoinDesk 20 Index also declined by 2%.

Macroeconomic concerns remained a major driver of the sell-off. CME FedWatch data showed an 88% probability of a 25-basis-point Fed rate hike next month, compared with a 12% chance of a larger 50-basis-point increase. Expectations for higher borrowing costs strengthened after inflation data came in above economists’ projections.

The U.S. Dollar Index (DXY) climbed past 103, reaching its highest point since April 2025. The combination of a stronger dollar and rising Treasury yields is making conventional investments more appealing, creating additional challenges for cryptocurrencies.

Technology stocks also contributed to the negative sentiment. Nvidia shares dropped 4% following CEO Jensen Huang’s resignation on Thursday. Given Bitcoin’s close correlation with technology equities, weakness in the technology sector added further pressure to the digital asset market.

Bitcoin Drops Below $70K as Crypto Liquidations Reach $1.64 Billion

The latest market decline triggered widespread liquidations across leveraged trading positions. CoinGlass data indicated that approximately $1.64 billion in cryptocurrency positions were wiped out over the previous 24 hours. Long positions represented nearly 88.7% of the total forced closures, highlighting the extent of losses among bullish traders.

Bitcoin accounted for approximately $916 million in liquidations, making it the largest contributor to the market-wide losses. Ethereum followed with roughly $289 million in liquidated positions.

Institutional demand also showed signs of continued weakness. According to Farside Investors, U.S. spot Bitcoin ETFs registered $47.7 million in net withdrawals on Thursday. This extended their outflow streak to six consecutive trading sessions, taking cumulative withdrawals to approximately $1.44 billion.

Attention has now shifted toward October’s Producer Price Index (PPI) report, due later today. Economists are forecasting a 0.4% monthly increase in producer prices. The Federal Reserve is scheduled to announce its next monetary policy decision following its December 8–9 meeting.

Crypto Futures Volume Jumps as Traders Reduce Market Exposure

The cryptocurrency derivatives market experienced a significant increase in activity as prices moved lower. Futures trading volume surged 58.3% to $269.1 billion over 24 hours, while total open interest contracted 4.6% to $120.2 billion. These movements indicate that traders were closing positions and cutting exposure during the latest market downturn.

Total liquidations increased 513.7% to $1.64 billion, with bullish positions accounting for approximately 88.6% of the losses. Market-order statistics also revealed a slight selling advantage, as sellers represented 51.9% of overall taker volume.

Bitcoin futures generated approximately $916 million in liquidations, accounting for more than half of all forced closures. Long positions represented 95.2% of Bitcoin’s liquidation total. Meanwhile, open interest declined 5.4% as BTC prices dropped 5.9%, suggesting that much of the contraction was associated with falling contract valuations rather than a substantial net reduction in invested capital.

Bitcoin’s funding rates also moved slightly below zero. This development indicates that traders holding short positions were paying funding fees to those maintaining long exposure. The largest individual liquidation was recorded on Hyperliquid, where a $31.1 million Bitcoin long position was forcibly closed near $72,250.

Ethereum derivatives experienced comparable pressure. Around $289 million in ETH positions were liquidated, with bullish traders accounting for 89.5% of the total. Ethereum open interest decreased 4.1%, while the asset’s price declined 4.9%. Negative funding rates pointed to increasing interest in bearish positions.

Other prominent altcoins recorded even sharper declines in open interest. Solana’s figure dropped 8.6% against a 3.6% price decline. Zcash open interest decreased 8%, while its price slipped 3.8%. Dogecoin also experienced a 7.3% reduction in open interest as its market price declined 3.4%.

Negative funding rates were visible across several major cryptocurrencies, including BTC, ETH, XRP, SOL and TRX. This suggests that derivatives traders were becoming more bearish and increasingly willing to pay funding fees to maintain short positions.

Cumulative Volume Delta (CVD) indicators further highlighted the widespread selling pressure. Every major cryptocurrency recorded negative 24-hour CVD readings, suggesting that aggressive sellers were dominating buying activity. Bitcoin registered the weakest reading, followed by UNI, DOGE and SUI.

Options traders also displayed growing caution about further market declines. Bitcoin’s one-week 25-delta skew rose to approximately 14%, indicating that demand for protective put options was significantly stronger than demand for comparable call options.

One-week implied volatility briefly touched 43% before settling around 40%. This indicates that traders continued to anticipate substantial price movements but were not aggressively pricing in an even larger volatility spike. Ethereum options activity was particularly concentrated around the $1,800 put contract expiring November 20, with the strike approximately 7.5% below ETH’s prevailing price.

Altcoin Market Weakens as Fear and Greed Index Remains at 19

The broader cryptocurrency market continued to struggle as losses spread across major altcoins and decentralized finance-related assets.

Developments involving Aave attracted attention after Nasdaq-listed BTCS disclosed that it had sold Ethereum at a loss to safeguard its approximately $64 million borrowing position against liquidation. According to CoinDesk estimates, the company’s loan could become vulnerable to liquidation if Ethereum falls toward $1,717.

The CoinDesk DeFi Select Index (DFX) declined 3.5% since midnight UTC, recording the steepest losses among sector indexes. Aero (AERO) was another major underperformer, dropping 8% and ranking among the weakest constituents of the CoinDesk 100.

Solana lost 2.4%, moving below $80 despite the Depository Trust & Clearing Corporation (DTCC) incorporating the blockchain into its tokenization plans. A potential rollout is targeted for 2027.

Midnight (NIGHT), the privacy-focused blockchain project associated with Cardano, also experienced a reversal after its recent rally. The token declined 5.7%, giving back part of the 11% gain recorded over the previous week.

Despite widespread weakness, a limited number of tokens managed to post gains. Near Protocol (NEAR) advanced 2.6%, becoming the strongest performer among the nine CoinDesk 100 constituents trading higher. Falcon Finance (FF) climbed 2.5%, while Kite (KITE) gained 2.2%. No specific market catalysts were identified for these advances.

CoinMarketCap’s Altcoin Season Index increased to 48 from 39 on Thursday, suggesting that certain alternative cryptocurrencies were beginning to outperform Bitcoin. However, the reading remains well below 75, the threshold commonly used to identify a broader altcoin season.

Investor confidence remained firmly in negative territory. The Crypto Fear and Greed Index registered 19, signaling extreme fear across the market. Continued Bitcoin price weakness, persistent ETF outflows and substantial leveraged liquidations are weighing on sentiment, while expectations of higher U.S. interest rates are adding another obstacle to a potential cryptocurrency market recovery.