Bitcoin Drops Below $69,000 Amid Tech Sector Pressure
Cryptocurrency hits lowest level since August as ETF outflows and US monetary policy uncertainty weigh on the market.
Bitcoin saw a sharp decline this Friday, trading at $68,888.83. This movement represents a 3.60% drop and marks the first close below the $70,000 threshold since August.
The risk-off environment impacted several digital assets. Ethereum followed the negative trend with a 3.1% retreat, trading at $1,946.16. Over the week, both digital currencies recorded losses of 9% and 12.8%, respectively.
Analysts point to instability in tech stocks and capital outflows from exchange-traded funds as the cause for the devaluation. Data from Coinglass reveals that $1.57 billion was withdrawn from these investment vehicles over the last five business days.
The macroeconomic environment in the United States is also pressuring prices. The producer price index raised expectations for a quarter-percentage-point interest rate hike during the December meeting.
The resignation of Jensen Huang from Nvidia and the exclusion of Strategy from MSCI indices contributed to the pessimistic mood. Technical experts note that the break below the 200-day moving average reinforces selling pressure in the short term.
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