Yesterday morning, Bitcoin was still hovering around $71,000. By the early hours, it plunged straight to $68,500 in a single wick. The $70,000 milestone was gone before anyone could even blink. ETH also fell below $2,000 for the first time since August.
That plunge triggered over $1.3 billion in liquidations in 24 hours, wiping out 170,000 traders—90% of them were long. Put simply, it’s not that everyone suddenly turned bearish; leverage just couldn’t take the strain anymore. Once the price broke below $70,000, stop-loss orders set off a chain reaction.
Meanwhile, the US Dollar Index climbed above 103, its highest level in 19 months. October CPI came in hot, and a rate hike in December is all but certain. When the dollar strengthens, risk assets have to make way. Bitcoin is already down 17% this quarter. From last October’s peak of $126,000, it’s fallen 45%. It’s been down for five straight weeks, and this week looks set to be the sixth.
So what could fuel a rebound? First, we’ll see what October’s PPI says at 21:30 tonight. Then there’s Nvidia’s earnings report on November 17. But the real test will be the Fed meeting on December 9. A break below a key level isn’t scary by itself; what’s scary is when nobody dares to buy the dip. The Fear & Greed Index is at 18: extreme fear.
A drop below $70,000 isn’t the end of the world. The first rule of getting rich slowly is to stay in the game.
#WhatWillDriveCryptoandStocks’NextRebound?
$BTC $ETH
That plunge triggered over $1.3 billion in liquidations in 24 hours, wiping out 170,000 traders—90% of them were long. Put simply, it’s not that everyone suddenly turned bearish; leverage just couldn’t take the strain anymore. Once the price broke below $70,000, stop-loss orders set off a chain reaction.
Meanwhile, the US Dollar Index climbed above 103, its highest level in 19 months. October CPI came in hot, and a rate hike in December is all but certain. When the dollar strengthens, risk assets have to make way. Bitcoin is already down 17% this quarter. From last October’s peak of $126,000, it’s fallen 45%. It’s been down for five straight weeks, and this week looks set to be the sixth.
So what could fuel a rebound? First, we’ll see what October’s PPI says at 21:30 tonight. Then there’s Nvidia’s earnings report on November 17. But the real test will be the Fed meeting on December 9. A break below a key level isn’t scary by itself; what’s scary is when nobody dares to buy the dip. The Fear & Greed Index is at 18: extreme fear.
A drop below $70,000 isn’t the end of the world. The first rule of getting rich slowly is to stay in the game.
#WhatWillDriveCryptoandStocks’NextRebound?
$BTC $ETH
