Bitcoin Falls 1.4% to $76,800 as Long Liquidations Near $100 Million
Key Facts
Bitcoin fell to about $76,800, down 1.4% over 24 hours as of around 6:30 a.m. Japan time on Nov. 3, according to a CryptoQuant reading. EL7 data showed the cryptocurrency closed at $77,095.48 that day, after closing at $76,816 on Nov. 2. The move came as tensions around the Strait of Hormuz escalated, but crypto market data also showed direct pressure from a wave of long-position liquidations. Bitcoin liquidations totaled about $100 million over 24 hours through 6:16 a.m. Japan time, with long positions accounting for about 70% across 13 platforms. In the energy market, oil prices rose in early trading after the strikes, restoring a risk premium to the market, according to an analyst.
A rebound attempt preceded the decline on the morning of Nov. 2, when Bitcoin approached $78,700 but failed to break above $79,000 before slipping into the $77,600–$77,800 range in the afternoon and evening, according to CryptoQuant. On Nov. 3, the price fell below $77,140, the cost-basis level cited in the report for holders who had owned the cryptocurrency for one to three months as of Nov. 1. That level adds pressure on traders who bought during that period, as long positions dominate liquidations. EL7 data offers a different picture depending on the measurement time: it recorded a daily close above the previous day's close, while CryptoQuant's morning price snapshot showed a 24-hour decline. These readings show that the price path differed between the intraday measure and the daily close, with trading remaining near $77,000.
A U.S. official said Monday's U.S. strikes targeted Iranians who were using surface-to-air missiles against U.S. forces in the strait, according to the Associated Press. Iranian media reported hearing explosions on Qeshm and Hengam islands and in Bandar Abbas. The security escalation refocused attention on the Strait of Hormuz, which before shipping was disrupted carried about one-fifth of global crude oil and natural gas supplies, according to Reuters. Brent crude rose 48 cents, or 0.5%, to $105.25 a barrel by 01:04 GMT on Nov. 3. West Texas Intermediate also gained 47 cents, or 0.5%, to $96.93 a barrel.
Oil's rise followed Brent futures' close on Monday at $104.77 a barrel, down $8.66, or 7.63%. Tim Waterer, chief market analyst at KCM Trade, said the report of the strikes "put some risk premium back into oil prices" after markets had begun pricing in a diplomatic path. Crude's move in the opposite direction reflects a divergence between the energy market, which responded directly to shipping risks, and Bitcoin, where liquidations and long positions came under pressure. According to a Reuters report, futures ended October at their highest levels in six months, a backdrop reflecting oil prices' sensitivity to regional developments. The oil prices cited remain tied to specific trading times on Nov. 2 and 3.
On the diplomatic front, two regional officials said mediation efforts had made progress and that mediators were working on a framework under which Iran would stop its attacks in the strait in exchange for the United States lifting its blockade of Iranian ports. The officials said further talks were scheduled during the week. U.S. Vice President JD Vance said the president and his team "feel very optimistic about the chances of reaching a negotiated settlement." Iran, meanwhile, said it had a two-day plan to reopen the Strait of Hormuz and resume nuclear talks with the United States if Washington met its demands. Reopening the waterway remains central to efforts to ease tensions, given its former share of global energy supplies.
China's Foreign Ministry said its special envoy for the Middle East would visit Iran, Oman and Saudi Arabia in early and mid-November to support peace talks and ease tensions. On the U.S. calendar, the Bureau of Labor Statistics scheduled the release of the September Job Openings and Labor Turnover Survey for Nov. 3 at 10 a.m. Eastern time. It also scheduled the October Consumer Price Index release for Nov. 10 at 8:30 a.m. Eastern time. These dates are near-term milestones for markets to watch alongside developments in mediation and shipping in the Strait of Hormuz. The oil and Bitcoin moves cited here reflect readings dated Nov. 2 and 3.