Bitcoin Hits 12-Week Low Amid US Interest Rate Fears

Bitcoin retreated to the $68,500 range on Friday. This value represents the lowest level in the last 12 weeks and erases much of the recovery observed at the end of the North American summer.

Market data shows a daily drop of 4.5% and a weekly decline of 9.5%. Other digital assets followed the trend as Ethereum traded near $1,925 and Solana fell below $80.

Chicago Federal Reserve President Austan Goolsbee stated that inflation persists in sectors such as services and medical costs. He noted that demand for artificial intelligence data centers contributes to current price pressures.

Fed Governor Christopher Waller mentioned support for a 0.25 percentage point increase at the December meeting. The consumer price index rose 0.3% in October which exceeded the 0.2% forecast and opened the door for discussions regarding more aggressive monetary tightening.

Market probabilities point to a 91.9% chance of a 0.25 point increase and an 8.1% chance for a 0.5 point hike. The high interest rate environment makes traditional investments more attractive which decreases interest in speculative assets and puts pressure on Bitcoin.