Bitcoin Slips Below $70,000 as Treasury Yields and Inflation Fears Mount

Cryptocurrency markets experienced a sharp downturn, with Bitcoin sliding approximately 4.7% over 24 hours as of 1:11 p.m. ET on Friday, Nov. 13, pushing the digital asset beneath the $70,000 threshold. The downward momentum dragged the price down to about $68,000 overnight, marking its weakest level since August. Broader equities also faced headwinds, as the S&P 500 and the Nasdaq Composite retreated by 0.8% and 1.2%, respectively.

According to market reports, the sell-off was triggered by hotter-than-expected inflation data released earlier in the week, which amplified market expectations for a Federal Reserve interest rate hike. Concurrently, long-dated U.S. Treasury yields climbed higher, with the 10-year yield reaching 5.13%. As government bonds offer increasingly attractive, secure returns, capital tends to flow out of speculative assets like cryptocurrencies and into fixed-income securities.

The decline was further exacerbated by widespread liquidations of leveraged crypto positions, which were unwound in less than a day and accelerated the overall losses. Analysts note that with a quarter-point rate increase largely anticipated for the upcoming December meeting, broader macro pressures on digital currencies are likely to persist in the near term.

What to watch next: Monitor upcoming Federal Reserve commentary and Treasury yield movements for signs of further monetary tightening.