Bitcoin fell below $70,000. Unease in tech stocks sparked by Nvidia CEO Jensen Huang’s resignation was one factor in the backdrop, but leveraged liquidations prolonged the decline. Before the drop, a large concentration of long positions was vulnerable to liquidation in the $71,000–$69,000 range. Once the price fell below $71,000, market sell orders from forced liquidations pushed it lower, triggering another wave of liquidations.
The same tech-stock news can drive a much deeper drop when prices are in a zone with dense liquidation levels. Available information does not break down how much of this decline was due to liquidations versus interest-rate expectations.
The same tech-stock news can drive a much deeper drop when prices are in a zone with dense liquidation levels. Available information does not break down how much of this decline was due to liquidations versus interest-rate expectations.