Bitcoin Price Crashes Below $68,000 as Liquidations Hit $1.62B
Bitcoin fell to $67,500 on November 12, its lowest in nearly three months, as traders unwound leveraged bets. Coinglass counted $1.62 billion in crypto liquidations. Rate-hike fears, the Nvidia leadership shake-up and a looming index change at Strategy all weighed on sentiment.
The bitcoin price crashes below $68,000 as a sell-off that began midweek deepened, pushing the world's largest cryptocurrency to a nearly three-month low of $67,500 on November 12, according to Bitstamp data. The drop erased most of the late-summer rally.
The low came at 1:54 a.m. EST. Bitcoin later recovered to trade near $68,000, but it had shed nearly 9% since slipping below $74,000 on November 11. It has lost double-digit percentages in November.
Liquidations top $1.6 billion
Traders who bet on a rebound took the worst of it. Coinglass data showed $1.62 billion in liquidations across the crypto market over 24 hours. A liquidation happens when an exchange force-closes a leveraged position because the trader can no longer cover losses.
Long positions, which bet on rising prices, made up $1.46 billion of that total, nearly 90%. Bitcoin longs alone lost more than $901 million, including nearly $560 million within four hours. Short liquidations came to $31 million.
One analyst said the forced selling had become a self-reinforcing loop: margin calls trigger more selling, which speeds the decline.
Altcoins fall harder
Ethereum dropped to $1,910, down more than 6% on the day, after slipping below $2,000. XRP briefly broke under $1 and is down more than 15% on the week. Solana slid from above $83 to $78.
Bitcoin's market value fell below $1.38 trillion. The whole crypto market is now valued at $2.4 trillion.
What is driving the slide
Market watchers point to several pressures. Bitcoin News tied part of the fallout to the ouster of Nvidia chief executive Jensen Huang, which has rattled financial markets more broadly.
Rate expectations are another factor. The U.S. jobs report showed nonfarm payrolls rose by 165,000 in October against a consensus forecast of 65,000. Consumer prices rose 0.4% in October, above the 0.3% analysts expected.
Fed Governor Christopher Waller said on Tuesday he backed raising rates even if inflation had come in cooler. He added that a 50 basis point increase, double the usual 25 basis points, could be warranted if data runs hot.
CME FedWatch shows traders see a December hike as a certainty. The odds favor 25 basis points at nearly 90%, with about 10% for 50. Higher rates tend to weigh on speculative assets such as cryptocurrencies.
Crypto also faces worries about regulation after a sweeping Democratic victory in last week's U.S. midterm elections. Producer prices rose 0.3% in October, below forecasts, which offered brief relief.
MSCI said it will exclude Strategy, the largest corporate bitcoin holder, and similar firms from its benchmark indexes effective November 30. That does not force bitcoin sales directly, but it limits Strategy's ability to raise new capital, and the firm could end up selling more of its holdings to meet its debt and capital obligations.
