Bitcoin (BTC) experienced a notable decline, falling to approximately $73,500 on Sunday, marking its lowest price point since August. This drop coincided with the liquidation of over $1 billion in leveraged cryptocurrency positions leading up to this week’s U.S. inflation report.
Bitcoin Price Movement and Market Responses
As per TradingView data, Bitcoin’s price fell below $74,000 prior to the end of the week on Sunday, extending a downward trend that began the previous week. The cryptocurrency briefly recovered, peaking above $75,000 before retracting.
According to data from Coinglass, approximately $1.12 billion in leveraged positions across the cryptocurrency market were liquidated in the 24 hours preceding 9:00 a.m. UTC on Monday. Additionally, Bitcoin traded below its 50-week simple moving average of $75,492 and approached its 21-week moving average of $73,078.
On Monday, Bitcoin was trading below short-term holder cost metrics which estimate the average acquisition cost of coins that have not moved in the last 155 days. CryptoQuant analysis suggests that the average cost basis for Bitcoin is around $79,300, a figure that could pose resistance if current buyers decide to sell at breakeven.
Market Dynamics and Expert Analysis
Crypto analyst Recto Capital indicated that there is a need for increased selling volume before the market shows signs of seller exhaustion, which typically indicates that a price bottom is near. “Seller exhaustion tends to occur exactly at or very close to the bottom of the Bitcoin price,” he noted on X.
Nasdaq 100 Futures and Nvidia Investigation
Moving beyond cryptocurrency, Nasdaq 100 futures have shown volatility following Nvidia’s announcement of an independent investigation regarding its CEO Jensen Huang’s potential targeting by foreign intelligence operations. Despite earlier fluctuations, Nasdaq futures experienced another decline as U.S. trading opened, contrasting with gains in S&P 500 and Dow futures.
Economist Mohamed El-Erian expressed concern over the timing of the Nvidia investigation, emphasizing the company’s critical importance to the technology sector. “The company is systemically important to technology, markets, and the economy,” he commented.
Upcoming U.S. Inflation Reports
The U.S. Bureau of Labor Statistics is set to release key inflation indicators this week, with the Consumer Price Index (CPI) scheduled for Tuesday and the Producer Price Index (PPI) on Friday, both at 8:30 a.m. ET. Consumer prices saw a year-over-year increase of 3.7% in September, driven by a 9.1% rise in gasoline prices.
In related market dynamics, West Texas Intermediate crude oil futures are trading near $90 per barrel. Economist Robin Brooks noted that a decrease in oil prices could elevate Bitcoin’s value, alongside other assets. “I think there’s a lot of downside for oil, but I think that means upside for margins in gold, silver, the S&P 500, and Bitcoin,” he said.
The market anticipates a 78.8% probability of a 25 basis point interest rate increase by the Federal Reserve in December, according to CME Group data, with various Federal officials expected to speak about inflation trends and economic outlook in the coming days.
