Bitcoin slipped 5.6% on Friday, trading just above $69,300 after briefly falling below $69,000. The decline marked the cryptocurrency's lowest price since mid-August, when it had recovered from $63,000.
Market analysts attributed the downward movement to a combination of factors. Tim Sun, senior analyst at Hashkey, told Decrypt that "Bitcoin's drop below $69,000 was directly triggered by a concentrated liquidation of leveraged long positions," though he emphasized that underlying market dynamics posed a deeper concern.
Weakening Support Pillars
Sun pointed to three simultaneous pressures on market demand. U.S. Bitcoin spot ETFs recorded six consecutive days of net outflows, stablecoin supply contracted, and investment firm Strategy was removed from MSCI funds. "ETFs, stablecoin liquidity, and corporate treasuries have served as the primary capital pillars supporting this Bitcoin rally," Sun explained. "With all three coming under simultaneous pressure, the market is losing the marginal buying power that previously propelled prices higher."
The broader cryptocurrency market followed Bitcoin lower. Ethereum declined 4.6% to $1,953, BNB fell 4.7% to $639.46, and Solana dropped 3.1% to $80.47. The global crypto market cap declined 4.6% to $2.39 trillion over the past 24 hours.
Inflation Report and Rate Expectations
The sell-off coincided with October's consumer price index report showing a 0.4% monthly increase. Though the headline rate eased from September's 0.6%, James Butterfill, head of research at CoinShares, noted concerning details: food prices rose 0.5%, core CPI increased 0.3%, and services excluding rent—a gauge of domestic price pressure—rose 0.5%.
Market pricing shifted significantly following the inflation data. Polymarket predictors placed a 97% probability on a Federal Reserve rate increase, up from 75% at the start of the week. The CME FedWatch tool indicated an 88% chance of a 25 basis point hike, with 12% anticipating a 50 basis point increase.
Additional Market Headwinds
Bitcoin also faced pressure from developments in the technology sector. Nvidia CEO Jensen Huang resigned from the company, an announcement that prompted broader market de-risking. Sun noted that "severe volatility across tech stocks" had dampened risk appetite, amplifying downward pressure on Bitcoin through portfolio rebalancing.
For a recovery, Sun suggested Bitcoin would need "long-term allocation capital" to return to crypto markets after recent losses among ETFs, stablecoins, and digital asset treasury firms.
