Bitcoin has fallen below $70,000 for the first time since August, as worries about inflation and higher interest rates hit crypto markets hard.
The largest digital currency dropped as low as $67,628 on Friday, 13 November, its weakest level since 19 August. It later recovered some ground to trade near $69,000, but it was still down sharply on the day and about 17% lower for the quarter.
The fall wiped out more than $1.6 billion in leveraged crypto bets in 24 hours, according to data from CoinGlass. Bitcoin alone accounted for about $677 million of those forced sales, with nearly $500 million liquidated in the single hour when the price broke through $70,000.
Why Bitcoin Is Falling
The main driver is a sharp change in what traders expect from the US Federal Reserve. Inflation data released earlier in the week came in hotter than expected, with US consumer prices rising 0.4% in October, according to the Bureau of Labor Statistics.
Traders now see an 88% chance that the Fed will raise interest rates by a quarter point in December, with a 12% chance of a larger half-point rise, according to the CME FedWatch tool. Higher rates tend to hurt risky assets like crypto, because safer investments such as bonds start to pay more.
The US dollar has also surged. The Dollar Index, which measures the currency against a basket of others, rose above 103, its highest level since April 2025. A stronger dollar often pushes Bitcoin down, as the two tend to move in opposite directions.
ETF Outflows Add to the Pressure
Money has also been flowing out of US spot Bitcoin exchange-traded funds (ETFs). These funds have lost around $1.88 billion since the start of November, according to Farside Investors, including five straight sessions of net outflows through 11 November worth about $1.44 billion.
Ether, the second-largest cryptocurrency, fell with Bitcoin to around $1,731, its lowest level in 12 weeks. The wider crypto market followed, as traders rushed to cut risk.
Bitcoin has now slipped below its 200-week moving average, a long-term trend line that CoinDesk put at around $68,000. It is also trading about 45% below its record high of near $126,000, reached in October 2025.
What Happens Next
All eyes are now on the Federal Reserve, which meets on 8–9 December. Fresh US producer price data due on Friday could move markets again if it also comes in hotter than expected.
Analysts say the $67,500 to $68,000 area is the next level to watch. If it holds, buyers may step back in. If it breaks, some warn the price could slide further towards $65,000.
The sell-off is a reminder of how fast sentiment can turn in crypto. Gold, often seen as a safer store of value, has also had a rough run — Gold Hits 2026 Low as Price Falls 27% from Record High — but Bitcoin’s swings remain far sharper.
For now, traders are waiting to see whether the Fed’s next move, and the dollar’s next step, will calm the market or push Bitcoin lower still.
Sources: CoinDesk, Free Malaysia Today. This article is for information only and is not financial advice.
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