• Bitcoin falls below $70,000 after recently reaching nearly $85,000.
  • Crypto liquidations hit $622 million in four hours, with long traders taking the biggest losses.
  • Weak ETF demand, US inflation concerns, and negative market sentiment are key reasons.

After surging to nearly $85k for the first time since January 2026, the Bitcoin price has now dropped below $70,000. The sudden decline has triggered heavy liquidations, with traders losing around $797 million in leveraged positions within just four hours.

Why is the Bitcoin Price Falling Today?

The Bitcoin price is currently in the negative zone, facing a significant loss of around 7% in a day. As of press time, BTC is valued at $69,064, posting sharp declines of 9% and 18% in a week and a month, respectively.

Notably, this Bitcoin price crash is driven by several factors. One of the main reasons is the stronger-than-expected US inflation. The recent US CPI report revealed that consumer prices increased by 0.4% in October, above economists’ expectations of 0.3%. This has raised expectations of another interest rate hike by the Federal Reserve in December. Thus, investors became more cautious about risky assets like Bitcoin.

In addition, institutional demand for BTC is also weakening. Between November 5 and 11, US spot Bitcoin ETFs saw net outflows of around $1.44 billion. This indicates that investors have started pulling out their money from the crypto fund after a period of positive sentiment.

The prevailing pressure surrounding traditional markets has also contributed to the recent Bitcoin price correction. Recently, Nvidia shares fell by 7% after reports about CEO Jensen Huang and his position at the company. The decline also brought Nasdaq-100 futures lower, adding to the negative sentiment across technology stocks and other risk assets. As Bitcoin has often moved alongside traditional markets during uncertain periods, the current pressure has also impacted crypto.

Another major factor contributing to the Bitcoin price drop is the declining stablecoin liquidity and heavy leveraged trading. As Bitcoin moved lower, exchanges began closing leveraged long positions, triggering further selling and accelerating the price decline.

Bitcoin Liquidations Cross $797M, Long Traders Take the Biggest Hit

Meanwhile, the drastic fall in the Bitcoin price has resulted in a huge liquidation event. Data from CoinGlass has revealed that nearly $797 million in leveraged positions have been liquidated on different exchanges over the past four hours, out of which $718 million were long positions and $79 million were short positions.

Crypto Liquidations; Source: CoinGlass

It means that those traders who anticipated an increase in the price of Bitcoin lost the most. While BTC dipped below $70k, several leveraged long positions failed to maintain their margin requirements, and the exchanges were forced to close them.

Crypto Market Sentiment Turns Bearish as Bitcoin Falls

It is important to note that the latest Bitcoin price decline has affected the overall market sentiment. Following the crash, investors are becoming more cautious about the coin. Thus, the Crypto Fear & Greed Index is now firmly in the extremely fearful territory. This is due to increasing fears regarding possible additional losses in the crypto market.

Also, social media sentiment about the price of Bitcoin has become negative. At the moment, more bearish views dominate over the bullish ones. Traders are afraid of additional selling pressure and possible corrections.

What Is Next for Bitcoin Price?

Now, the Bitcoin price is struggling to surge above the $70k level. But if the crypto manages to break above the level, it could decrease the current selling pressure. On the other hand, if the coin marks a sustained move below this level, it could push BTC to severe lows. 

The next resistance area lies around 72,000–73,200. If BTC marks a strong recovery above $73,150, which was previously a support level, the price could see a short-term improvement. Further resistance stands around 74,000–75,500.

For these price movements, some upcoming factors are important to watch. The market is watching the upcoming US economic data and Federal Reserve comments for clues about future interest rate decisions. Bitcoin ETF inflows are also worth watching.

Related: Bitcoin ETFs Record $299.8M Outflows as BlackRock Leads Institutional Selling

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.