Bitcoin briefly crashed to about $67,555 around midnight Eastern on Friday, marking its lowest level since mid-August, before recovering to trade near $69,800 by Friday morning. The intraday decline pushed the cryptocurrency below its 200-week moving average, a technical support level near $68,000, before buyers stepped in to lift prices above $69,000.
The sharp move followed a broader selloff that began Thursday evening. Bitcoin traded near $72,800 on Thursday morning, then slipped toward $71,000 by evening before breaking below $70,000 late at night.
Macro Pressures Weigh on Price
The U.S. Dollar Index held above 103 Friday after a three-day rally brought it to its highest level since April 2025. The 10-year Treasury yield was near 5.15%, while two-year yields tracked expectations of Federal Reserve action. Traders priced an 88% probability of a quarter-point rate hike at the Fed's December 8-9 meeting, with a 12% chance of a half-point increase, according to CME FedWatch data.
Fed Governor Christopher Waller has added a 50-basis-point increase to policy discussions, and New York Fed President John Williams said Thursday that inflation remains elevated and policymakers need to take further action. Higher interest rates increase the opportunity cost of holding an asset that generates no yield, while a stronger dollar typically reduces demand for risk assets.
Liquidations and ETF Outflows Mount
The break below $70,000 triggered forced selling in leveraged positions. About $1.64 billion in crypto positions were liquidated within 24 hours, with long bets representing roughly 89% of the total. Bitcoin positions accounted for $916 million of the liquidations.
U.S. spot bitcoin ETFs contributed to the downward pressure. The funds posted approximately $47.7 million in net outflows Thursday, marking the sixth consecutive day of withdrawals and bringing the total to roughly $1.49 billion. BlackRock's iShares Bitcoin Trust lost about $2 billion over nine trading sessions through Wednesday.
Sentiment and Market Structure Deteriorate
A widely followed crypto fear and greed gauge dropped to 20 Friday, its lowest reading since July 8. Bitcoin is now tracking toward a second consecutive down year. Average perpetual futures funding rates turned negative for the first time in a month as prices approached $68,500, indicating short sellers are paying to maintain their positions.
Market liquidity has thinned considerably. Bitcoin order-book depth across major exchanges fell to $72 million on November 9, roughly 33% below normal levels. Thin liquidity combined with elevated leverage leaves the market vulnerable to sharp price swings.
Producer Price Data Offers Limited Relief
The Labor Department reported that the Producer Price Index for final demand rose 0.3% in October, below the 0.4% monthly increase economists expected. Core prices, excluding food and energy, increased 0.3%, matching forecasts. On an unadjusted basis, the headline index was up 6.5% from a year earlier, the largest 12-month rise since November 2022.
The softer-than-expected reading provided some temporary relief to the dollar, which still remained above 103. However, with a December rate hike fully priced into markets, the near-term outlook for bitcoin remains constrained.
