Bitcoin Falls Below $70,000 Amid Global Risk-Off Sentiment
Cryptocurrency drops under $70,000 for the first time since August due to macro uncertainty and ETF outflows.
Bitcoin retreated below the $70,000 mark this Friday. The move reflects a widespread risk-off sentiment that is also impacting global stock markets. This devaluation follows six consecutive weeks of losses for the digital asset.
Data from the Coinbase platform shows that Bitcoin was trading down 3.60% around 4:50 PM. Ethereum followed the negative trend with a 3.1% decline. For the week, both digital currencies recorded drops of 9% and 12.8%, respectively.
The macroeconomic landscape in the United States contributes to the selling pressure. The producer price index raised expectations for higher interest rates in the country. This restrictive monetary policy environment discourages riskier assets and drives capital outflows from cryptocurrency ETFs.
The technology sector is also facing turbulence that impacts investor mood. The crisis at Nvidia and Jensen Huang's resignation from the company's leadership increase volatility. Furthermore, the removal of Strategy from MSCI indices puts additional pressure on market sentiment.
Outflows from cryptocurrency ETFs reached $1.57 billion over the last five trading days. Analysts point to the break of the 200-day moving average as a factor accelerating the sell-off. The market is now monitoring support levels between $63,000 and $66,000.
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