Bitcoin Falls Below $69,000
The main reasons behind the decline include expectations that the US Federal Reserve will raise interest rates and weakening institutional interest in the cryptocurrency market.
Bitcoin fell to its lowest level in three months on Friday, dropping below the $70,000 mark. The cryptocurrency declined 5.7% to $69,240. It is expected to lose approximately 9% this week, potentially marking its sixth consecutive weekly decline.
The main reasons behind the decline include growing expectations that the US Federal Reserve will raise interest rates and weakening institutional interest in the cryptocurrency market. Higher-than-expected inflation in October has led investors to take the possibility of a December rate hike more seriously. Higher interest rates tend to push investors away from risky assets such as cryptocurrencies and toward safer investments.
Another factor putting pressure on the market is Strategy, the world's largest corporate holder of Bitcoin. MSCI is considering removing the company and similar businesses from certain indexes starting November 30. Such a decision could limit Strategy's ability to attract new investment and affect its future Bitcoin purchases.
The decline in Bitcoin has also affected other cryptocurrencies. Ethereum fell 4.6% to $1,950, while XRP declined 2.1%. Solana, Cardano and BNB also lost value. Several major altcoins, including Ethereum and XRP, are reported to have recorded weekly losses exceeding 10%.