Bitcoin Plunges, Wiping Out $1B in Crypto Bets

Bitcoin's value saw a sharp decline on Monday morning, dipping to its lowest point in two months and trading around $74,100 after hitting lows of $73,650. This significant drop resulted in more than $1.14 billion in leveraged cryptocurrency positions being liquidated globally over the preceding 24 hours, with long positions accounting for approximately 90% of the total. Ethereum positions alone accounted for nearly $500 million in liquidations, significantly more than Bitcoin's $305.3 million.

The cryptocurrency market's volatility was influenced by external factors, including reports concerning Nvidia CEO Jensen Huang. Huang acknowledged an affair with a business executive whom U.S. officials reportedly suspect of passing information to China, prompting an independent investigation by Nvidia's board. Additionally, U.S. Secretary of State Marco Rubio stated that negotiations with Iran had stalled, increasing geopolitical concerns in the Middle East.

Analysts noted that Bitcoin had closed its fifth consecutive week in the red and fallen below its 50-week moving average, suggesting potential for further declines toward $70,000 if the level isn't reclaimed. The market now awaits the opening of U.S. stock markets for further insights, with expectations that a rebound in equities could lead to a stronger recovery in crypto, while a continued decline could signal a sharper correction.