The cryptocurrency market sell-off intensified early Friday, with Bitcoin falling below $70,000 and Ethereum slipping under $2,000. The sharp decline triggered substantial liquidations across crypto futures markets as investors reacted to growing macroeconomic uncertainty.
Bitcoin’s downward momentum accelerated as the U.S. dollar climbed to its strongest level since April 2025 against a basket of major fiat currencies.
The largest cryptocurrency by market capitalization dropped to approximately $69,000, marking its lowest price since August 19, according to CoinDesk data. Bitcoin has now lost around 17% during the current quarter, erasing a significant portion of the gains recorded over the previous three months.
Other major cryptocurrencies also came under pressure. Ethereum, the second-largest digital asset, slipped below $2,000 for the first time since August. XRP traded near the $1 mark, while Solana’s SOL fell beneath $80. Several smaller cryptocurrencies, including GT, Stacks, and XMR, recorded losses of at least 7%.
The broader sell-off coincided with a sharp rise in the U.S. Dollar Index (DXY), which measures the greenback against a basket of major currencies. The index climbed above 103, reaching its highest level since April 2025. It has gained nearly 2% since early October as expectations of Federal Reserve rate increases have strengthened, putting additional pressure on risk-sensitive assets that depend heavily on market liquidity.
Expectations of a potential half-percentage-point interest rate increase in December have risen following October’s hotter-than-expected U.S. Consumer Price Index (CPI) report released earlier this week.
Meanwhile, reports of renewed military tensions in the Middle East added another layer of uncertainty to global markets. Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed it had destroyed a U.S. early-warning radar system in Bahrain in retaliation for an airstrike targeting a telecommunications tower in Sirik.
In statements carried by the semi-official Tasnim news agency, the IRGC called the operation a serious warning to what it described as an aggressor enemy. It also demanded an end to alleged repeated aerial provocations and oil smuggling activities in the Strait of Hormuz.
Despite the escalating tensions, West Texas Intermediate (WTI) crude oil remained near $88 per barrel, slightly below Thursday’s peak of $89.15.
Crypto Liquidations Exceed $1.3 Billion
The sudden decline in cryptocurrency prices triggered widespread forced closures across leveraged trading platforms. Data from Coinglass shows that crypto futures positions worth more than $1.3 billion were liquidated over a 24-hour period. Bitcoin accounted for approximately $677 million of the total.
Nearly $500 million in liquidations occurred around the time Bitcoin dropped below $70,000, highlighting the extent of leveraged bullish positioning in the market.
Liquidations happen when exchanges automatically close leveraged trades after losses reduce a trader’s margin below the required maintenance level. Bitcoin’s breakdown beneath $70,000 likely pushed numerous long positions below their collateral requirements, forcing exchanges to sell their holdings.
The largest individual liquidation involved a Bitcoin long position valued at more than $31 million. The bullish trade was placed on Hyperliquid, a decentralized trading platform.
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