Bitcoin Slides to $69K as Concentrated Liquidations Hit Weakening Demand

Bitcoin fell 5.6% on Friday to trade just above $69,300, after touching a 24-hour low of $67,922 — its weakest level since mid-August, when the asset rallied from $63,000. Analysts attribute the move to a concentrated liquidation of leveraged long positions layered on top of deteriorating demand across spot ETFs, stablecoins and corporate treasury vehicles.

"Bitcoin's drop below $69,000 was directly triggered by a concentrated liquidation of leveraged long positions," Tim Sun, senior analyst at Hashkey, told Decrypt. "Though the deeper issue lies in steadily weakening market demand."

Which capital pillars are cracking?

Sun identified three demand channels under simultaneous strain. U.S. Bitcoin spot ETFs have recorded six consecutive days of net outflows, according to CoinGlass data. Stablecoin supply is shrinking. And index provider MSCI has removed digital asset treasury firm Strategy from its funds.

"ETFs, stablecoin liquidity, and corporate treasuries have served as the primary capital pillars supporting this Bitcoin rally," Sun said. "With all three coming under simultaneous pressure, the market is losing the marginal buying power that previously propelled prices higher."

The losses spread across the broader market. Ethereum dropped 4.6% to $1,953, BNB slipped 4.7% to $639.46 and Solana fell 3.1% to $80.47, per Decrypt data. Global crypto market capitalization contracted 4.6% over 24 hours to $2.39 trillion.

How did the CPI report feed the selloff?

The slide followed a hotter-than-expected U.S. consumer price index print for October. Headline CPI rose 0.4% month over month, easing from September's 0.6%, but the composition troubled analysts.

"More troubling was the composition," James Butterfill, head of research at CoinShares, said. "Food rose 0.5%, services remained firm, and core CPI increased 0.3%, with services excluding rent, a gauge of domestic price pressure the Fed watches closely, rising 0.5%. The inflation problem is therefore no longer easily dismissed as an oil story."

The CPI tracks average price changes in everyday goods and services, and central banks use it to calibrate rate decisions. A hot print raises the odds of tighter policy, which pressures risk assets.

Rate markets have already repriced. Polymarket traders now assign a 97% probability to the Federal Reserve raising rates this year, up from 75% at the start of the week. The CME FedWatch tool shows an 88% chance of a 25 basis point hike and a 12% chance of a 50 basis point move.

What role did Nvidia play?

The crypto drawdown coincided with Nvidia CEO Jensen Huang resigning from the company, after reports of multiple affairs — including with a suspected Chinese spy and a senior company executive — spread.

"Huang's departure has sparked severe volatility across tech stocks, further dampening market risk appetite," Sun said. "This has prompted broader portfolio de-risking, amplifying the downward pressure on Bitcoin."

What would stabilize the market?

A rebound requires fresh structural capital rather than a bounce in spot buying, according to Sun. He said Bitcoin needs "long-term allocation capital" to flow back into crypto after ETFs, stablecoins and digital asset treasury companies took a hit in recent weeks.

Until those three channels recover, the marginal buyer who drove the rally remains absent — and rate expectations tied to upcoming CPI prints will keep setting the risk backdrop for leveraged crypto positions.