Key Takeaways
- • Bitcoin fell below $72,000 to a low of about $71,300, its lowest level since August, while Ethereum slipped under $2,000 and XRP approached $1, according to CoinGlass data.
- • US spot Bitcoin ETFs recorded $299.8 million in net outflows in the latest session, the fifth consecutive day of withdrawals, for a cumulative total of roughly $1.44 billion; spot Ethereum ETFs saw $144.8 million in outflows.
- • Leveraged traders were hit hard, with about $479 million in liquidations across the five largest cryptocurrencies in 24 hours, roughly $414 million of it from long positions.
- • Rising US Treasury yields and hotter-than-expected October inflation (CPI up 0.4% month-on-month versus 0.3% expected) revived expectations of further Federal Reserve tightening, adding pressure to crypto markets.
- • A reported Nvidia leadership change, with CEO Jensen Huang resigning and CFO Colette Kress named interim CEO, coincided with the sell-off, though the Nasdaq's losses were limited to about 0.35% early in the session.
Summary
Cryptocurrency markets sold off intensely during the US trading session, with Bitcoin falling from around $73,500 in the morning to approximately $71,300 at its low, its weakest level since August. According to CoinGlass data, Bitcoin was trading near $71,369, down 2.91% over 24 hours. Ethereum fell 2.73% to $1,999.53, Solana dropped 3.58% to $80.84, XRP declined to $1.0174, and BNB to $652. Heavier losses were seen in smaller tokens, with Dogecoin down 5.09% and NEAR down 8.86%.
The decline coincided with a leadership announcement from Nvidia before the US open. The company said founder and CEO Jensen Huang had resigned from his executive and board positions, with CFO Colette Kress appointed interim CEO. Nvidia shares fell roughly 10% before the open, and Bitcoin slipped to about $72,400 at that point. Once trading began, Nasdaq losses were limited to about 0.35% in the first half hour, and Broadcom and AMD shares rose about 3%, yet Bitcoin continued lower, indicating that crypto weakness was not solely a function of broader equity risk-off sentiment.
Macro pressure was a further factor. Cleveland Fed President Beth Hammack said inflationary pressures were spreading more widely and that monetary policy needed to be tightened. The two-year US Treasury yield, sensitive to Fed expectations, rose 7.2 basis points to 4.80%. October consumer prices rose 0.4% month-on-month against expectations of 0.3%, and core inflation rose 0.3% for a third consecutive month. Federal Reserve Governor Christopher Waller also said in a speech that further tightening was needed to return inflation to the 2% target, keeping rate-hike expectations alive.
Spot ETF flows added to the weakness. According to Farside Investors data, US spot Bitcoin ETFs saw $299.8 million in net outflows in the last completed session, the fifth straight day of withdrawals and roughly $1.44 billion over that period. BlackRock's IBIT led with $269.7 million in outflows and Grayscale's GBTC lost $39.1 million, while Morgan Stanley's MSBT gained $9 million. Spot Ethereum ETFs recorded $144.8 million in net outflows, bringing the combined net outflow across both fund groups to $444.6 million.
Leveraged positions amplified the move. CoinGlass data showed $305.23 million in Bitcoin liquidations and $126.35 million in Ethereum liquidations over 24 hours, with $266.45 million of Bitcoin and $104.74 million of Ethereum coming from long positions. Solana liquidations totaled $23.63 million, XRP $12.78 million and Dogecoin about $11.17 million. Across these five assets, liquidations exceeded $479 million, of which approximately $414 million were long positions. Forced closures of leveraged longs as prices fall can add further selling pressure.
The decline coincided with a leadership announcement from Nvidia before the US open. The company said founder and CEO Jensen Huang had resigned from his executive and board positions, with CFO Colette Kress appointed interim CEO. Nvidia shares fell roughly 10% before the open, and Bitcoin slipped to about $72,400 at that point. Once trading began, Nasdaq losses were limited to about 0.35% in the first half hour, and Broadcom and AMD shares rose about 3%, yet Bitcoin continued lower, indicating that crypto weakness was not solely a function of broader equity risk-off sentiment.
Macro pressure was a further factor. Cleveland Fed President Beth Hammack said inflationary pressures were spreading more widely and that monetary policy needed to be tightened. The two-year US Treasury yield, sensitive to Fed expectations, rose 7.2 basis points to 4.80%. October consumer prices rose 0.4% month-on-month against expectations of 0.3%, and core inflation rose 0.3% for a third consecutive month. Federal Reserve Governor Christopher Waller also said in a speech that further tightening was needed to return inflation to the 2% target, keeping rate-hike expectations alive.
Spot ETF flows added to the weakness. According to Farside Investors data, US spot Bitcoin ETFs saw $299.8 million in net outflows in the last completed session, the fifth straight day of withdrawals and roughly $1.44 billion over that period. BlackRock's IBIT led with $269.7 million in outflows and Grayscale's GBTC lost $39.1 million, while Morgan Stanley's MSBT gained $9 million. Spot Ethereum ETFs recorded $144.8 million in net outflows, bringing the combined net outflow across both fund groups to $444.6 million.
Leveraged positions amplified the move. CoinGlass data showed $305.23 million in Bitcoin liquidations and $126.35 million in Ethereum liquidations over 24 hours, with $266.45 million of Bitcoin and $104.74 million of Ethereum coming from long positions. Solana liquidations totaled $23.63 million, XRP $12.78 million and Dogecoin about $11.17 million. Across these five assets, liquidations exceeded $479 million, of which approximately $414 million were long positions. Forced closures of leveraged longs as prices fall can add further selling pressure.
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