Bitcoin slides below US$70,000 as inflation concerns hurt crypto
The largest digital asset sank as much as 5.4% to US$67,628, its lowest level since Aug 19.
On October 30, Bitcoin prices dipped below $70,000 for the first time since August, marking a two-day decline and a potential 9% drop. The cryptocurrency's value plummeted as much as 5.4% to $67,628, its lowest since August 19, following a 3.8% decrease the previous day. Following a brief recovery, Bitcoin settled around $69,000 as of 7:30 AM London time. Asian markets, once led by the tech sector, retreated, while bond prices plummeted, as investors remained watchful for upcoming US producer-price data.
A significant $1.5 billion in bullish cryptocurrency bets evaporated within 24 hours, according to CoinGlass data. Leveraged traders' forced sales exacerbated the decline, with Sean McNulty, a derivatives trader at AQC Tech, noting that once Bitcoin broke below $70,000, over $1 billion in leveraged longs were liquidated, fueling further selling.
The convergence of macroeconomic pressures on crypto, including surging oil prices, persistent inflation, and expectations of additional US Federal Reserve rate hikes, contributed to Bitcoin's weakness. Democrats' anticipated control over both US congressional chambers following the midterm elections has heightened regulatory concerns in the industry. A key US inflation metric showed a further rise in October, reinforcing the Fed's trajectory to raise rates next month.
Bitcoin's decline appears to be fueled by factors beyond pure macro concerns. Rich Rosenblum, co-founder of crypto market maker GSR, highlighted the impact of volatility in the AI sector and the strength of the US dollar, which have eroded some long-term Bitcoin positions. The hot inflation data and changes in Nvidia's leadership are also weighing on risk assets.
Institutional investors have been retreating for the past two weeks, with US-listed spot Bitcoin exchange-traded funds experiencing more than $2.5 billion in net outflows since October 30.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
