Bitcoin’s slide deepened this week, with the world’s largest cryptocurrency breaking below $70,000 on Friday and trading near $65,200 on Saturday morning, about 14% lower than a week ago, according to Bitcoin Magazine.
On Friday, bitcoin fell 7% in 24 hours to $68,408, its lowest level since August 20, while ether dropped 6% to $1,921, BNB fell 6.3% and XRP lost 3.5%, The Block reported.
A leverage flush
Most of the damage came from forced selling. Crypto liquidations totalled about $1.47 billion over 24 hours, including $1.31 billion in long positions betting on higher prices, with more than 175,000 traders liquidated, according to CoinGlass data cited by The Block.
“The sharp leg lower in crypto looks like a leverage event as BTC broke key levels,” said Rick Maeda, head of markets at Laevitas. Once bitcoin broke $70,000, he said, long positions clustered below that level “were forced out quickly.”
Why the market is under pressure
- ETF outflows: BlackRock’s IBIT recorded more than $2 billion in net outflows over nine straight sessions, and nearly $1.44 billion left US spot bitcoin ETFs over five sessions, according to Cointelegraph figures cited by CoinMarketCap.
- Rate-hike fears: a hotter-than-expected October CPI reading raised the odds of a Federal Reserve rate hike in December, the US Dollar Index rose above 103, and the 10-year Treasury yield climbed above 5% (CoinMarketCap).
- Tech turmoil: traders were also digesting the leadership shake-up at Nvidia after co-founder Jensen Huang resigned as CEO, which weighed on risk assets broadly (The Block).
Total crypto market capitalisation fell about 7% in a day to roughly $2.35 trillion, and the Crypto Fear & Greed Index dropped to 20, its first “Extreme Fear” reading since July (Yahoo Finance).
What traders are watching
Analysts are focused on US inflation data and the Fed’s December 9 meeting. BTSE COO Jeff Mei said a 50-basis-point hike instead of the expected 25 could give crypto “more room to fall.” ViaBTC chief analyst Jeff Ko offered a counterpoint: persistent inflation could strengthen bitcoin’s appeal as a hedge over the longer term (The Block). CoinDesk has flagged a turning momentum gauge that, if history repeats, could take bitcoin back below $60,000 (CoinDesk).
What it means for African users
For traders in Lagos, Nairobi and Johannesburg who use crypto for savings and cross-border payments, the week is a reminder that volatility cuts both ways. Leverage magnifies losses, and stablecoin balances, not bitcoin, remain the safer option for anyone who needs to pay bills in the short term.
This article is for information only and is not investment advice.
