Bitcoin’s decline accelerated early Friday, dragging the wider cryptocurrency market lower as BTC broke below $70,000 and Ethereum lost the $2,000 support level. The sudden drop triggered heavy liquidations across crypto derivatives platforms, intensifying the market-wide sell-off.

The downward move coincided with a powerful rally in the U.S. dollar, which climbed to its highest level since April 2025 against a basket of major currencies.

According to CoinDesk data, Bitcoin touched approximately $69,000, reaching its weakest price since August 19. The asset has declined roughly 17% this quarter, surrendering a large share of the gains achieved during the previous three months.

Selling pressure was widespread across the digital asset sector. Ethereum fell below $2,000 for the first time since August, XRP approached $1, and Solana’s SOL dropped under $80. Smaller cryptocurrencies, including GT, Stacks, and XMR, also recorded losses of at least 7%.

The U.S. Dollar Index (DXY), which measures the dollar’s performance against several major fiat currencies, climbed above 103. This was its highest reading since April 2025. The index has risen nearly 2% since early October as expectations of additional Federal Reserve rate increases have strengthened. A stronger dollar often weighs on risk assets by tightening financial conditions and reducing demand for investments sensitive to liquidity.

Traders have also increased their expectations of a 50-basis-point Federal Reserve rate hike in December following the release of stronger-than-expected U.S. inflation figures for October earlier this week.

Geopolitical tensions have further complicated the market outlook. Media reports indicate renewed military escalation in the Middle East after Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed it had destroyed a U.S. early-warning radar system in Bahrain. The group said the strike was retaliation for an air attack on a telecommunications tower in Sirik.

In comments carried by the semi-official Tasnim news agency, the IRGC called the operation a serious warning to its opponents. It also demanded an end to what it described as repeated aerial provocations and oil smuggling operations in the Strait of Hormuz.

Oil markets showed a relatively limited reaction to the developments. West Texas Intermediate (WTI) crude was trading near $88 per barrel, slightly below its Thursday peak of $89.15.

Bitcoin Sell-Off Sparks $1.3 Billion in Crypto Liquidations

The sharp price decline has placed considerable pressure on leveraged traders, triggering more than $1.3 billion in forced closures across cryptocurrency futures markets. Coinglass data shows that Bitcoin positions represented approximately $677 million of the total liquidations over 24 hours.

Nearly $500 million in leveraged bets were wiped out as Bitcoin slipped beneath $70,000, suggesting that traders had built up substantial bullish exposure before the breakdown.

A liquidation happens when an exchange automatically closes a leveraged position because losses have pushed the trader’s margin below the minimum required level. Bitcoin’s sudden drop likely pushed numerous long positions beyond their collateral limits, forcing exchanges to sell positions and adding to the downward momentum.

The largest reported liquidation involved a Bitcoin long trade worth more than $31 million. The position was opened on Hyperliquid, a decentralized derivatives trading platform, and reflected a bullish bet on Bitcoin’s price.