Bitcoin (BTC) fell below $70,000 for the first time in nearly three months Friday morning, as investors weigh the value of the largest cryptocurrency against a more hawkish Federal Reserve and other growing headwinds.
After falling to $68,000, bitcoin recovered to around $69,265, down more than 10% so far in November, according to data from Yahoo Finance.
The latest drop follows major index provider MSCI’s decision on Wednesday to remove the strategy of Michael Saylor (MSTR), the largest publicly traded company holding Bitcoin, from two US stock indexes. The move could force funds that track these benchmarks to sell shares of the company.
But Bitcoin’s problems extend far beyond strategy.
“The latest selloff is driven by a combination of macroeconomic risk aversion, persistent outflows from spot Bitcoin ETFs, and unwinding of leveraged long positions,” said Lacie Zhang, an analyst at crypto firm Bitget.
Expectations of further interest rate hikes from the Federal Reserve weighed on riskier assets, particularly bitcoin, while weakness in technology stocks added to the pressure.
Crypto-related stocks including Coinbase Global (COIN), Robinhood (HOOD), and Circle Internet Group (CRCL) also declined early Friday.
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