Bitcoin drops below US$70,000 as leveraged selling deepens losses
US-listed spot Bitcoin exchange-traded funds recorded net outflows exceeding US$2.5 billion since Oct 30.
Bitcoin dropped through US$70,000 on Nov 13, reaching that level for the first occasion since August as inflation and interest-rate concerns hit cryptocurrencies. Its decline over two days reached as much as 9%.
The token touched US$67,628 after falling as much as 5.4%, its weakest price since Aug 19. That followed a 3.8% retreat on Thursday. It subsequently recovered some ground, trading near US$69,200 during early New York trading.
CoinGlass data showed roughly US$1.5 billion worth of bullish cryptocurrency positions were liquidated within 24 hours. Sean McNulty, a derivatives trader at market maker AQC Tech, said the break beneath US$70,000 triggered forced exits from leveraged long positions exceeding US$1 billion, accelerating selling.
Ether also lost as much as 6%, taking the second-largest token below US$2,000. Institutional demand weakened too, with net withdrawals from US-listed spot Bitcoin exchange-traded funds exceeding US$2.5 billion since Oct 30.
US consumer prices excluding food and energy increased 0.3% in October from the previous month, exceeding forecasts for the third consecutive month. Overall consumer prices rose 0.4%.
Jeff Mei, chief operating officer of crypto exchange BTSE, said cryptocurrencies could decline further if the Federal Reserve raises rates by 50 basis points (bps) instead of the anticipated 25bps.
