Bitcoin (BTC) extended its decline on Friday, dropping below the $70,000 mark for the first time since August as selling pressure intensified across the cryptocurrency market. The leading digital asset fell 3.5% since midnight UTC, while total crypto liquidations surpassed $1.6 billion over the past 24 hours. Growing expectations of another U.S. interest rate increase and a stronger dollar added to the pressure on digital assets.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also recorded significant losses, with both assets reaching their lowest levels in approximately 12 weeks. Traders increasingly anticipate another Federal Reserve rate hike next month, driving Treasury yields and the U.S. dollar higher while weakening demand for risk-sensitive investments.

Bitcoin briefly dropped to $67,770 after losing the closely monitored $70,000 support level. This represented its lowest price since August 19. Ethereum also declined to $1,900, marking its weakest level since August 18. Meanwhile, the CoinDesk 20 Index slipped 2%.

The latest sell-off coincided with renewed strength in the U.S. dollar. According to CME FedWatch data, market participants were assigning an 88% probability to a 25-basis-point interest rate increase next month, while the likelihood of a larger 50-basis-point hike stood at 12%. Expectations of tighter monetary policy strengthened following inflation data that came in above market estimates.

The U.S. Dollar Index (DXY) moved above 103, reaching its highest level since April 2025. A stronger dollar and rising bond yields are creating additional headwinds for cryptocurrencies as traditional financial instruments become more attractive to investors.

Weakness in technology stocks added another layer of pressure. Nvidia shares fell 4% following the resignation of CEO Jensen Huang on Thursday. Bitcoin’s close relationship with technology equities has made weakness across the broader tech sector another negative factor for crypto market sentiment.

Bitcoin Crash Pushes Crypto Liquidations Beyond $1.64 Billion

The sharp decline triggered substantial losses among leveraged cryptocurrency traders. Data from CoinGlass showed that approximately $1.64 billion worth of crypto positions were liquidated over 24 hours, with long positions representing nearly 88.7% of the total.

Bitcoin accounted for the largest share of forced closures, with approximately $916 million in liquidations. Ethereum followed with around $289 million.

Institutional demand also continued to weaken. U.S. spot Bitcoin exchange-traded funds recorded $47.7 million in net outflows on Thursday, according to Farside Investors. This marked the sixth consecutive trading session of withdrawals, pushing cumulative outflows to approximately $1.44 billion.

Investors are now awaiting October’s Producer Price Index (PPI) report, scheduled for release later today. Economists expect producer prices to increase 0.4% month over month. Meanwhile, the Federal Reserve’s next monetary policy meeting is scheduled for December 8–9.

Crypto Futures Trading Rises as Leveraged Traders Cut Exposure

Activity across cryptocurrency derivatives markets accelerated during Friday’s sell-off. Futures trading volume surged 58.3% to $269.1 billion over 24 hours, while aggregate open interest declined 4.6% to $120.2 billion. The combination suggests that traders were reducing their market exposure and closing existing positions amid heightened volatility.

Liquidations jumped 513.7% to approximately $1.64 billion, with bullish traders bearing nearly 88.6% of the losses. Market-order data also reflected a selling bias, as sellers accounted for 51.9% of total taker volume.

Bitcoin futures represented more than half of all forced liquidations, accounting for approximately $916 million. Long positions made up 95.2% of Bitcoin-related liquidations. Open interest declined 5.4%, compared with a 5.9% drop in BTC’s price, indicating that much of the reduction reflected the falling value of outstanding contracts rather than a comparable withdrawal of capital.

Bitcoin funding rates also turned moderately negative, suggesting that short sellers were paying long traders to maintain their positions. The largest individual liquidation involved a $31.1 million Bitcoin long position on Hyperliquid, which was closed near $72,250.

Ethereum derivatives displayed similar weakness. Approximately $289 million in ETH positions were liquidated, with long traders accounting for 89.5% of the total. Ethereum open interest declined 4.1%, while its market price dropped 4.9%. Negative funding rates further highlighted growing demand for bearish positions.

Several major altcoins experienced even larger reductions in open interest. Solana’s open interest fell 8.6% despite a 3.6% price decline. Zcash recorded an 8% decrease in open interest alongside a 3.8% drop in price. Dogecoin’s open interest also contracted 7.3%, compared with a 3.4% decline in its market value.

Negative funding rates spread across several major cryptocurrencies, including Bitcoin, Ethereum, XRP, Solana and TRON. This suggests that derivatives traders were increasingly positioning for additional declines and accepting funding costs to maintain short exposure.

Cumulative Volume Delta (CVD) readings provided further evidence of widespread selling activity. All major cryptocurrencies posted negative 24-hour readings, indicating that aggressive sell orders outweighed market buying. Bitcoin recorded the weakest reading, followed by UNI, DOGE and SUI.

Options markets also reflected increasing concerns about potential downside risks. Bitcoin’s one-week 25-delta skew climbed to approximately 14%, indicating stronger demand for put options as investors sought protection against further price declines.

One-week implied volatility briefly reached 43% before settling near 40%. This suggests that traders continued to expect significant price fluctuations, although they were not aggressively pricing in an even larger market move. In Ethereum’s options market, trading activity was concentrated around the $1,800 put contract expiring on November 20, with its strike price approximately 7.5% below ETH’s prevailing market value.

Altcoins Slide Further as Crypto Fear Index Signals Extreme Pessimism

Selling pressure extended beyond Bitcoin and Ethereum, weighing on several major altcoins and cryptocurrency sectors.

Aave-related developments attracted attention after Nasdaq-listed BTCS disclosed that it had sold Ethereum at a loss to safeguard its approximately $64 million borrowing position against liquidation. CoinDesk estimates that the company’s loan could face liquidation if ETH declines toward $1,717.

The CoinDesk DeFi Select Index (DFX) dropped 3.5% since midnight UTC, making it the worst-performing sector index. Aero (AERO) also ranked among the weakest assets in the CoinDesk 100, recording an 8% decline.

Solana fell 2.4% and moved below $80 despite the Depository Trust & Clearing Corporation (DTCC) including the blockchain in its tokenization plans, with a potential launch targeted for 2027.

Midnight (NIGHT), a privacy-focused blockchain ecosystem associated with Cardano, also surrendered part of its recent gains. The token declined 5.7% after advancing 11% over the previous seven days.

A handful of cryptocurrencies managed to remain in positive territory despite the broader market weakness. Near Protocol (NEAR) gained 2.6%, becoming the strongest performer among the nine advancing constituents of the CoinDesk 100. Falcon Finance (FF) increased 2.5%, while Kite (KITE) added 2.2%. No specific catalysts were identified behind these gains.

Meanwhile, CoinMarketCap’s Altcoin Season Index increased to 48 from 39 on Thursday, suggesting that some alternative cryptocurrencies were beginning to outperform Bitcoin. However, the indicator remains below 75, the level commonly associated with a broader altcoin season.

Market sentiment remained deeply negative. The Crypto Fear and Greed Index stood at 19, firmly within the extreme fear zone. Persistent Bitcoin ETF withdrawals, heavy leveraged liquidations and growing expectations of tighter U.S. monetary policy continue to weigh on investor confidence, leaving the broader cryptocurrency market vulnerable to further downside.