Bitcoin falls below $70,000 for first time since August as inflation fears weigh on crypto market

In brief

• Bitcoin fell below $70,000 on November 13 for the first time since August.
• The price dropped 5.4% in one session to $67,628 before partly recovering near $69,000.
• Inflation concerns, rate-hike expectations, a stronger dollar and ETF outflows are cited as the main pressures.

Bitcoin slides below $70,000

Bitcoin fell below $70,000 on Friday, November 13, for the first time since August, according to Bloomberg (Біткоїн обвалився до мінімуму з літа: скільки коштує криптовалюта – UNIAN) (Bitcoin poniżej 70 000 USD po raz pierwszy od sierpnia. Odpływy z ETF-ów rosną – Puls Biznesu). Over the previous two days the price had lost about 9%. The largest cryptocurrency fell 5.4% in a single session to $67,628, its lowest level since August 19. A drop of 3.8% recorded on November 12 preceded the latest move.

Inflation and rate worries drive the sell-off

Market participants linked the decline to concerns about inflation in the United States and the prospect of further interest rate increases by the Federal Reserve. A strengthening dollar also weighed on digital assets (Bitcoin najniżej od sierpnia. Kurs spada poniżej 70 tys. dolarów – Bankier.pl). Outflows from US spot bitcoin exchange-traded funds have grown, and since the start of the year they have recorded net withdrawals of more than $1.5 billion.

Leveraged positions wiped out

Data from CoinGlass showed roughly $1.5 billion in long positions liquidated over 24 hours. Forced selling by traders using borrowed funds accelerated the fall, according to the same data.

Partial recovery

By 9:30 a.m. Kyiv time, bitcoin had recovered part of the losses and was trading near $69,000. Ethereum and other major tokens also moved lower in the same period.