Bitcoin’s price fell to a 12-week low of approximately $68,500 on Friday, pressured by renewed U.S. inflation concerns and sustained outflows from spot Bitcoin ETFs. The cryptocurrency saw a 4.5% drop over 24 hours and a 9.5% decline for the week, according to market data from Friday. Selling pressure also impacted other major digital assets, with Ethereum trading near $1,925 and Solana falling below $80.
This downturn has largely erased Bitcoin’s late-summer recovery, though it remains about 16% above its late-June low of near $59,000. The asset has retreated approximately 21% from its autumn peak around $86,000.
Federal Reserve officials have signaled a hawkish stance on interest rates, contributing to market uncertainty. Chicago Federal Reserve President Austan Goolsbee warned that inflation has broadened beyond energy and tariffs, citing rising services and medical costs, and demand from AI data centers. “Are we on a path back to 2%? My feeling right now is we are not and we’ve got to deal with that,” Goolsbee stated, as reported by Reuters.
Fed Governor Christopher Waller indicated support for raising interest rates by at least 25 basis points at the upcoming December 8-9 meeting. He also suggested that a more aggressive policy move might be necessary if inflation data, such as core CPI, remained around 0.3% or higher. The latest report showed core CPI rising exactly 0.3% in October, meeting this condition.
Market expectations reflect these concerns. As of November 13, futures-based probabilities indicated a 91.9% chance of a quarter-point interest rate increase and an 8.1% chance of a half-point increase. The Federal Reserve’s current target range for interest rates is between 3.75% and 4.00%.
Adding to the pressure, wholesale prices rose 0.3% in October, according to the producer price index (PPI). While this was less than forecast, the year-over-year increase stood at 6.5%, the largest annual jump since 2022.
Higher interest rates make traditional interest-bearing investments more attractive, potentially reducing the appeal of speculative assets like cryptocurrencies. This macroeconomic backdrop is compounded by significant outflows from U.S. spot Bitcoin ETFs, which have experienced six consecutive sessions of net outflows totaling approximately $1.49 billion between November 5 and November 12. Thursday alone saw outflows of $47.7 million.
While these outflows do not signal a complete abandonment of Bitcoin by institutional investors, they reflect a state of nervousness in the market. Weakening ETF demand, coupled with potential liquidations of leveraged traders, can accelerate price declines when buyer interest is scarce.
Technical Indicators Signal Bearish Momentum
Technically, Bitcoin’s daily chart displays a sequence of lower highs and lower lows, confirming a bearish short-term trajectory. The relative strength index (RSI) has fallen to 25.4, a level generally considered oversold, suggesting selling pressure may be nearing exhaustion. However, the average directional index (ADX) at 25.3 indicates an established trend, and combined with declining prices, this suggests bearish momentum remains significant.
A longer-term positive signal persists, with the 50-day exponential moving average (EMA) remaining above the 200-day EMA, maintaining a bullish moving-average configuration. Nevertheless, Bitcoin’s price has fallen below the shorter-term 50-day EMA, indicating that recent momentum has shifted against buyers.
Immediate support for Bitcoin is observed around $67,650, Friday’s intraday low. A break below this level could expose a deeper support area near $64,000. On the upside, Bitcoin would need to reclaim levels around $70,815 and $72,775 before challenging the stronger resistance zone between $74,355 and $75,937.
The current combination of extreme oversold readings and strong downward momentum suggests the possibility of a temporary bounce, but there is insufficient evidence to declare a definitive bottom. It remains uncertain whether the Fed will implement a 25 or 50 basis point rate hike in December.
Looking Ahead
Traders are closely watching two key macroeconomic checkpoints: the release of the Federal Reserve’s November meeting minutes on November 18 and the PCE inflation report on November 25. These events are expected to influence expectations leading up to the Federal Reserve’s interest-rate decision in December. The ultimate impact on Bitcoin’s price remains uncertain.
Why This Matters
The materials describe a narrow update: Bitcoin fell to approximately $68,500, its lowest in 12 weeks, driven by concerns over U. Whether the Fed will implement a 25 or 50 basis point rate hike in December.
Broader Context
Source materials place the factual news in this context: Bitcoin fell to roughly $68,500 on Friday, hitting its lowest price in 12 weeks as renewed U.S. inflation worries and investor withdrawals pushed the cryptocurrency further into the red.
