Bitcoin dropped to approximately $73,500 late Sunday, marking its lowest price level since August, as broader market volatility intensified ahead of key US inflation data. The decline coincided with more than $1 billion in leveraged cryptocurrency positions being liquidated, according to data from CoinGlass.
The sell-off occurred as markets reacted to a confluence of macroeconomic signals and corporate governance developments. Bitcoin traded below its 50-week simple moving average of $75,492 and approached the 21-week simple moving average at $73,078. Data from analytics firm CryptoQuant showed the asset also trading below the short-term holder cost basis, which stood at $75,691 on Monday.
Nvidia investigation adds to market uncertainty
Volatility in the technology sector contributed to the risk-off sentiment after Nvidia’s board announced Sunday that it had launched an independent investigation into reports that Chief Executive Officer Jensen Huang was targeted by a foreign intelligence effort. China’s foreign ministry denied the spying allegations on Monday.
AllianceBernstein economist Mohamed El-Erian described the timing of the probe as “unfortunate,” citing Nvidia’s central role in the technology sector and wider equity markets. In Asia, South Korea’s benchmark Kospi index closed down 0.8% at 5,018.85 on Monday, following a brief trading halt on Friday when the index plummeted more than 8% shortly after the open.
Despite the corporate turmoil, South Korean Vice Minister of Science and ICT Ryu Jemyung told a parliamentary budget committee on Monday that he expected contracted Nvidia chip deliveries to remain on schedule.
Inflation data and Fed expectations loom
Investors are now focusing on upcoming US economic releases. The Bureau of Labor Statistics is scheduled to publish October’s Consumer Price Index on Tuesday and the Producer Price Index on Friday. Consumer prices rose 3.7% from a year earlier in September.
Market pricing reflects heightened caution regarding monetary policy. Data from CME Group’s FedWatch Tool indicates a 78.8% probability that the Federal Reserve will raise interest rates by 25 basis points in December. Several Fed officials are slated to speak in the coming days, offering further insight into their stance on inflation and economic conditions.
Geopolitical tensions and technical levels
Geopolitical developments also influenced commodity and digital asset markets. US President Donald Trump told CNN on Sunday that renewed US strikes on Iran were “highly unlikely,” stating the decision depended on whether Tehran signed an agreement. West Texas Intermediate crude futures traded near $90 a barrel Monday morning.
Economist Robin Brooks noted that the ongoing conflict has kept oil prices elevated, suggesting that a decline in crude could potentially lift Bitcoin, equities and precious metals. In the crypto derivatives market, about $1.12 billion in leveraged positions were liquidated in the 24 hours through 9 am UTC Monday.
Technical analysts remain cautious on Bitcoin’s immediate trajectory. Trader Rekt Capital stated Sunday that selling volume would need to rise before sellers showed signs of exhaustion. A CryptoQuant community analyst identified the cost basis for coins moved one to three months ago at approximately $79,300, noting that this level could act as resistance if recent buyers sell to break even.
