Bitcoin Rebounds Above $74,000 After $1 Billion in Crypto Liquidations
Bitcoin (BTC) experienced sharp price swings over the weekend as investors reacted to growing uncertainty surrounding Nvidia and stalled diplomatic negotiations between the United States and Iran.
The largest cryptocurrency dropped to around $73,761 late Sunday, marking its lowest price since August, before recovering above $75,000. However, the rebound lost momentum, leaving traders uncertain about the market's next direction.
Ether (ETH) also suffered heavy losses, falling below $2,100 before recovering to approximately $2,144.
The sudden volatility triggered more than $1 billion in liquidations across the crypto market over a 24-hour period, according to CoinGlass. Around $913 million came from long positions, showing that traders betting on higher prices suffered most of the damage.
Ether recorded approximately $448 million in liquidations, compared with $272 million for Bitcoin. The largest individual liquidation involved an ETH position worth $48 million.
Nvidia controversy adds pressure to markets
One of the main developments affecting investor sentiment involved Nvidia CEO Jensen Huang. The company's board launched an independent investigation following reports that Huang had an affair with Alice Huang, a business executive whom U.S. intelligence agencies reportedly suspect of passing information to China.
Huang acknowledged the affair in a message to employees and apologized for his actions. Nvidia said it had no reason to believe that company secrets or national security information had been compromised.
However, the investigation will examine the available information, with independent legal advisers assisting the board.
The situation has attracted attention because Nvidia plays a central role in the global artificial intelligence industry. Its position as a major supplier of advanced AI chips makes the company an important part of the broader technology market.
The controversy also comes as investors question whether the AI-driven market rally can continue. The Nasdaq dropped nearly 5% last week, extending its losing streak to four consecutive weeks.
Crypto traders also reacted to the developments. NVDAX, a tokenized version of Nvidia shares traded on xStock, fell 3.55% to $180.42 over 24 hours. Nvidia shares had closed at $186.64 on Friday, suggesting that crypto traders were pricing in further weakness ahead of the next traditional market session.
Iran negotiations add to market uncertainty
Geopolitical tensions provided another source of pressure. U.S. Secretary of State Marco Rubio said negotiations with Iran had failed to make progress, describing the country's demands as unacceptable.
The lack of progress has raised concerns about further instability in the Middle East, particularly because escalating tensions could push oil prices higher.
Rising oil prices have often increased risk aversion among investors, putting pressure on assets such as cryptocurrencies. Despite Bitcoin's reputation as digital gold, its price has frequently struggled during oil rallies since the Iran conflict began in March.
Bitcoin faces resistance near $77,400
Bitcoin's recovery above $75,000 provided some relief after the weekend sell-off, but the price struggled to maintain its upward momentum.
The next major move could depend on how traditional financial markets respond to the Nvidia developments and ongoing tensions involving Iran when trading resumes.
From a technical perspective, Bitcoin is trading between two important moving averages. The 200-day moving average provides support near $73,150, while the 100-day moving average acts as resistance around $77,430.
A move below the lower level could expose Bitcoin to further losses, while a sustained recovery above $77,430 could improve the short-term outlook.
For now, the combination of geopolitical uncertainty, technology-sector concerns and heavy leveraged liquidations continues to create difficult trading conditions for the crypto market.