Bitcoin plunged to a four-month low over the weekend, extending its decline as leveraged long positions faced widespread liquidations. The largest cryptocurrency dropped 5.7% in the US on November 14 and continued falling in Asia on November 15, hitting a low of US$62,112, its weakest level since July 14. Ether, the second-biggest token, also tumbled, losing 3.4% to US$1,711, its lowest since July 8.
Rich Rosenblum, co-founder of crypto market maker GSR, attributed the drop to a technical breakdown below Bitcoin's 200-day moving average of about US$73,000. This triggered a wave of liquidations and new short positions. The market has been under pressure from multiple factors, including expectations of higher interest rates, outflows from US spot Bitcoin exchange-traded funds, and the aftermath of the recent US$6 billion Binance hack.
Bitcoin has lost about 25% of its value since October 21, with its lowest point this year at US$57,742 on July 1. Large liquidation events, where over US$500 million in Bitcoin positions are wiped out within 24 hours, have become more frequent. On November 13, Bitcoin's slide led to the liquidation of roughly US$1.3 billion in long crypto bets, with Bitcoin positions making up the majority.
In the 24 hours through 7am on November 15 in Singapore, exchanges recorded about US$2 billion in crypto liquidations, including US$774 million in Bitcoin and US$488 million in Ether. Long positions accounted for most of these liquidations. From October 30 through November 13, US-listed spot Bitcoin ETFs saw almost US$3 billion in net outflows.
Richard Galvin, executive chairman at crypto investment firm DACM, suggested that the upcoming initial public offering of AI company Anthropic PBC may be drawing capital away from crypto. He noted that the price performance resembles the period leading up to the SpaceX IPO earlier this year, indicating that crypto remains a short-term funding source for retail investors.