Bitcoin slides below $70K amid thin liquidity, ETF outflows

Bitcoin fell below $70,000 on Friday, extending its recent decline as investor sentiment deteriorated amid institutional outflows, tightening liquidity and broader macroeconomic pressures. 

Bitcoin (BTC) is trading at $68,607.23 at the time of writing, down 9.2% in the last week, according to CoinGecko.

The decline coincided with a sharp decline in market sentiment. The Crypto Fear & Greed Index fell to 20 on Friday, its lowest reading in more than four months, putting it in “extreme fear.” The index last reached that level on July 8.

Vikram Subburaj, CEO of crypto exchange Giottus, attributed Bitcoin’s weakness to institutional outflows, tightening crypto liquidity and expectations of a December Federal Reserve interest rate hike. “Investors should avoid chasing short-term dips or using excessive leverage,” he said. 

In a Friday report, 10x Research highlighted Bitcoin’s divergence from US equities. Between Nov. 5 and Nov. 12, Bitcoin declined 5.9% while the Nasdaq 100 gained 6.4%, suggesting the cryptocurrency was responding more to rising Treasury yields and a stronger US dollar than to technology stocks.

The research firm said Bitcoin was increasingly trading alongside gold, which fell 5.5% over the same period, as the US 10-year Treasury yield climbed above 5%.