Bitcoin fell below $70,000 for the first time since August amid inflation concerns

On Friday, November 13, bitcoin fell below $70,000 for the first time since August. In two days, the largest cryptocurrency lost up to 9% of its value amid concerns about inflation and a possible interest rate hike by the U.S. Federal Reserve (Fed). Bloomberg reports, UNN writes.

Details

During trading, bitcoin fell 5.4% to $67,628. This was its lowest level since August 19. The day before, the cryptocurrency had already lost 3.8%. The price later partially recovered, reaching about $69,200 at the start of morning trading in New York.

According to CoinGlass, about $1.5 billion worth of long positions in the cryptocurrency market were liquidated over 24 hours. The forced sale of assets by traders using leverage intensified the decline.

As noted by Sean McNulty, a derivatives trader at market maker AQC Tech, after the $70,000 level was breached, more than $1 billion worth of leveraged long positions were forcibly closed, creating additional pressure on the market.

Ether, the second-largest cryptocurrency by market capitalization, fell 6% and again dropped below $2,000.

Inflation increases pressure on the cryptocurrency market

Macroeconomic risks were among the key factors behind the decline. High oil prices and persistent inflation are strengthening expectations of further Fed interest rate hikes.