Bitcoin price absorbs leverage shock after USD 1.47 billion liquidation wave

Bitcoin faced a sharp leverage-driven shock on November 13, when the cryptocurrency broke below USD 69,000 during Asian trading. The move triggered a wave of forced closures in crypto derivatives and added to concerns about whether buyers can stabilize the market after a volatile week.

The Block reported on November 13 that Bitcoin had reached USD 68,408, its lowest level since August 20, at 12:10 a.m. Eastern Time. The report said the token had lost 7 percent over the preceding 24 hours. These figures describe the market conditions on November 13, rather than a later trading quote.

Liquidations amplify the move

CoinGlass data cited by The Block showed USD 1.47 billion in crypto positions liquidated over 24 hours. Long positions accounted for USD 1.31 billion, while USD 798 million was liquidated during the preceding four hours. A total of 175,299 traders were reported to have been liquidated.

Rick Maeda, head of markets at Laevitas, described the sharp leg lower as a leverage event after Bitcoin lost USD 72,000 and then broke USD 70,000. In his assessment, long positions clustered below those levels were forced out quickly. The sequence illustrates how derivatives positioning can intensify a move that begins in the spot market.

Macro risk remains central

The Bitcoin price was also being assessed against a wider risk-off backdrop. The Block linked the market debate to the fallout from an Nvidia leadership shake-up and expectations that the Federal Reserve could raise interest rates in December. Jeff Mei, chief operating officer of BTSE, said traders were considering the possibility of a 50-basis-point increase, although the size of any move would depend on forthcoming inflation, employment, oil-price and geopolitical developments.

Other views were less uniformly negative. Jeff Ko, chief analyst at ViaBTC, said persistent inflation could support Bitcoin's longer-term appeal as an inflation hedge. He pointed to upcoming US PCE data and the Federal Reserve's December 9 projections as events that could shape the next phase of the market.

What investors are watching

For investors, the immediate issue is whether forced selling continues after leverage has been reduced. The Block also reported that traders were monitoring funding conditions and open interest in Bitcoin futures. A recovery would need to be distinguished from a temporary rebound if derivatives exposure remains elevated and institutional flows do not improve.

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