Bitcoin Drops to August Levels as Global Dollar Strengthens
Cryptocurrency hit a low of $67,500 as the dollar holds a 19-month high
The price of Bitcoin saw a sharp decline overnight, reaching the $67,500 mark. This value represents the lowest level observed for the digital asset since mid-August.
The devaluation occurred against a backdrop of a strengthening US dollar, which remains near its highest level in 19 months. This downward movement forced the liquidation of approximately $1.64 billion in crypto market positions within 24 hours.
Market data points to the fact that bets on price increases accounted for nearly 89% of total liquidations. Bitcoin positions alone were responsible for $916 million of that forced selling volume.
Pressure on the asset was also intensified by the expectation of further interest rate hikes by the Federal Reserve. The market projects a high probability of an increase at the December meeting, which raises the opportunity cost for assets without fixed yields.
Following the initial retreat, the price of Bitcoin attempted a recovery toward the $69,800 range on Friday. This movement followed the release of US producer price data, which came in below economists' expectations.
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