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Bitcoin fell 7% over the past 24 hours to $68,408 as of early Friday trading, its lowest level since Aug. 20, as the resignation of Nvidia CEO Jensen Huang and expectations of another Federal Reserve rate hike collided with a heavily levered crypto market. Ether dropped 6% to $1,921, BNB slid 6.3% and XRP lost 3.5%.
Liquidations totaled $1.47 billion over 24 hours, with 175,299 traders wiped out, according to CoinGlass data. Long positions accounted for $1.31 billion of the total, and the pace accelerated sharply: $798 million was liquidated in just the past four hours, including $718.5 million in longs.
Why it matters
Laevitas head of markets Rick Maeda called the move a leverage event rather than a pure sentiment shift. BTC had already lost $72,000 in the U.S. session, and once it broke $70,000 late in the Asian morning, the long positions clustered below that level were forced out quickly, with more than $600 million liquidated in four hours and over $1.3 billion in the past day.
The macro backdrop amplified the flush. Huang resigned Thursday after Nvidia launched an investigation into his relationship with a suspected Chinese spy, adding to risk-off pressure, while traders price in the possibility the Fed hikes rates by 50 basis points in December rather than the expected 25. Thin bids following this week's CPI print left the market little cushion.
Market impact
BTSE COO Jeff Mei warned that a 50-basis-point hike instead of the expected 25 would give bitcoin and other cryptocurrencies more room to fall, with the outcome hinging on inflation, unemployment data, oil prices and Middle East geopolitics. ViaBTC chief analyst Jeff Ko offered the counterweight: persistent inflation might actually strengthen bitcoin's appeal as an inflation hedge and support the currency debasement trade over the longer term.
Markets now watch the late-November PCE print and, more importantly, the Dec. 9 FOMC dot plot. Until one of those lands, this market is repricing leverage, not conviction.
Frequently asked questions
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How much did Bitcoin fall and to what price?
Bitcoin dropped 7% over the past 24 hours to $68,408, its lowest level since Aug. 20, after losing $72,000 in the U.S. session and breaking $70,000 in Asian morning trading.
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Why did crypto liquidations spike to $1.47 billion?
BTC's break below $70,000 forced out long positions clustered under that level. Thin bids after this week's CPI, Nvidia's leadership turmoil and Fed hike fears accelerated the flush.
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What role does the Federal Reserve play in the sell-off?
Traders are watching for a potential 50-basis-point December rate hike instead of the expected 25. BTSE's Jeff Mei said that scenario would give bitcoin and other cryptocurrencies more room to fall.
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Why did Jensen Huang resign as Nvidia CEO?
Huang resigned Thursday after Nvidia launched an investigation into his relationship with a suspected Chinese spy, adding to the risk-off pressure that hit crypto and broader markets.
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What upcoming events could move crypto prices next?
The late-November PCE inflation print and the Dec. 9 FOMC dot plot are the key catalysts, with a de-escalation in Iran flagged as one of the quickest paths to bringing inflation down.
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