Bitcoin fell below $70,000 for the first time in nearly three months as investors reassessed the cryptocurrency amid a more hawkish outlook for US monetary policy and mounting pressure across riskier markets.
The price dropped as low as $68,000 before recovering to around $69,265, according to Yahoo Finance data. Bitcoin remained down more than 10% so far in November.
The latest decline followed a Wednesday decision by index provider MSCI to remove Strategy (MSTR), the largest publicly traded corporate holder of bitcoin, from two US stock indexes. The change could prompt funds that track the benchmarks to sell shares in the company, adding pressure to Strategy’s stock.
However, analysts say the cryptocurrency’s weakness reflects broader market forces as well as concerns surrounding the company. “The latest selloff is being driven by a combination of macro risk aversion, persistent spot Bitcoin ETF outflows, and an unwind of leveraged long positions,” said Lacie Zhang, an analyst at crypto firm Bitget.
Expectations of further Federal Reserve interest-rate hikes have weighed on risk-sensitive assets, including bitcoin. Weakness in technology stocks has added to the pressure, while the unwinding of leveraged bets has contributed to the decline.
Shares of companies with exposure to the crypto sector also fell early Friday. Coinbase Global (COIN), Robinhood (HOOD) and Circle Internet Group (CRCL) all declined.
