Bitcoin fell below $70,000 on Friday for the first time since August, as a wave of forced selling in leveraged positions compounded concerns over US inflation and persistent outflows from spot exchange-traded funds. The leading cryptocurrency traded at $69,227 by 11:53 GMT, down 5% from the same time on Thursday, after touching an intraday low near $67,627 before paring some losses.
Ethereum also slipped below the $2,000 mark, while Solana and XRP weakened. Bitcoin was on track for a sixth consecutive weekly decline, underscoring how quickly market sentiment has deteriorated since its October 2025 peak.
Liquidations accelerate the selloff
The decline gathered pace once Bitcoin breached the $70,000 threshold, a level where many traders had built up leveraged bullish positions. According to CoinGlass, approximately $1.47 billion in cryptocurrency positions were liquidated over the 24 hours leading into Friday morning, with long positions accounting for $1.31 billion of that total. A separate CoinDesk snapshot put Bitcoin-specific liquidations at roughly $677 million; the differing figures reflect different observation windows rather than cumulative losses.
Sean McNulty, a derivatives trader at AQC Tech, told Bloomberg that crossing $70,000 triggered automatic closures of heavily leveraged positions, accelerating the downward move. When exchanges liquidate losing positions to recover borrowed funds, selling can spread even without fresh negative news, and thin order books magnify the effect.
Inflation and ETF withdrawals add pressure
Tuesday's US inflation data added to the strain. Headline consumer prices rose 0.4% in October, while core prices climbed 0.3%, both above forecasts. The stronger-than-expected readings reinforced expectations that the Federal Reserve will raise interest rates in December, supporting the dollar and reducing appetite for speculative assets.
Rich Rosenblum, co-founder of crypto market maker GSR, told Bloomberg that a firmer dollar and turbulence in artificial intelligence stocks had hurt bullish Bitcoin trades. Nvidia's management upheaval added to broader unease in risk markets.
Institutional flows have also turned negative. US spot Bitcoin ETFs recorded $643.6 million in net withdrawals this week through Thursday, according to SoSoValue data, pushing year-to-date net flows to a negative $1.56 billion. Those redemptions complicate any rebound, as new buyers must absorb ordinary selling alongside continued fund withdrawals.
Key support levels to watch
The area around $67,500 is now a near-term reference after Friday's low. Bitcoin also briefly slipped beneath its 200-week moving average near $68,000, a widely watched longer-term trend gauge. Keith Alan, co-founder of Material Indicators, warned in analysis reported by Cointelegraph that a further deterioration in weekly momentum could bring much lower levels into view.
A move back above $70,000 could ease immediate pressure, while a sustained fall below $67,500 would expose the $65,000 region. Traders are now awaiting Friday's US producer-price report and the Fed's December decision. MSCI's scheduled removal of Strategy from its indexes on 30 November is another potential source of volatility.
For investors exploring how to buy Bitcoin or comparing the best crypto exchanges, it is important to distinguish ordinary spot purchases from leveraged trading, where losses can accelerate rapidly.
This article is for informational purposes only and does not constitute financial advice.
