Why Bitcoin Is Falling Today - The Motley Fool
Bitcoin is down about 4.7% in the last 24 hours as of Friday afternoon, falling below $70,000 for the first time since August.
Bitcoin (BTC -3.80%) is falling today, down about 4.7% in the last 24 hours as of 1:11 p.m. ET on Friday, Nov. 13, after a stronger dollar and rising expectations of a Fed rate hike pushed it below $70,000 overnight. The S&P 500 (^GSPC -0.61%) and the Nasdaq Composite (^IXIC -1.07%) are also down, falling 0.8% and 1.2%, respectively.
Inflation and Treasury yields
Overnight, Bitcoin fell to around $68,000, its lowest since August of this year. The main driver was Tuesday's hotter-than-expected inflation data, which raised expectations of a rate hike. At the same time, long-dated U.S. Treasury rates are on the rise, with the yield on the 10-year reaching 5.13%.
When long-term Treasuries pay more, investors tend to move away from riskier assets like crypto, preferring the security of bonds. At the same time, more leveraged crypto positions were liquidated in under 24 hours, accelerating losses.
Fed hike expectations
If the Fed hikes in December as expected -- a quarter point is all but assured at this point -- that pressure doesn't go away. I think Bitcoin and crypto at large will continue to see pressure for some time.
If the Fed hikes in December as expected -- a quarter point is all but assured at this point -- that pressure doesn't go away. I think Bitcoin and crypto at large will continue to see pressure for some time.
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