Bitcoin's lowest level in 3 months: "4 developments caused this chart"

Selling pressure in Bitcoin continued today. The number one cryptocurrency dropped by more than 5 percent to $67,500, reaching its lowest level since August 19.

According to Bloomberg, inflation concerns in the USA, interest rate increase expectations and institutional investors' distance from the market were effective in Bitcoin falling below 70 thousand dollars.

Inflation and Fed concerns

October inflation data announced this week in the USA stood out as one of the main reasons for the selling pressure in the cryptocurrency market.

While consumer prices increased by 0.4 percent on a monthly basis, core inflation excluding food and energy increased by 0.3 percent. Core inflation was thus above expectations for the third month in a row.

Higher-than-expected data strengthened expectations that the American central bank, the Fed, might increase interest rates in December.

Bloomberg stated that high oil prices and inflation, as well as the strong course of the US dollar, increase the pressure on risky assets such as Bitcoin.

Developments in Nvidia are also effective

Rich Rosenblum, co-founder of cryptocurrency market maker GSR, said in his assessment to Bloomberg that the volatility in the artificial intelligence sector and the strengthening of the dollar caused some bullish positions in Bitcoin to be closed.

According to Rosenblum, inflation data coming in above expectations and the change in Nvidia's management also negatively affect investors' risk appetite.

The resignation of Nvidia CEO Jensen Huang was one of the important developments that increased uncertainty in technology stocks.

Liquidation of more than 1.2 billion dollars in 24 hours

Bitcoin's decline below 70 thousand dollars also led to large losses in leveraged transactions.

According to CoinGlass data, over 1.2 billion dollars of positions opened with the expectation of a rise in the cryptocurrency market were liquidated within 24 hours.

Sean McNulty, manager of market making company AQC Tech, stated that after Bitcoin lost $ 70 thousand, leveraged bullish positions worth over $ 1 billion were forced to be closed. According to McNulty, these liquidations caused the selling pressure in the market to become even stronger.

$2.5 billion out of Bitcoin ETFs

Another notable development is that institutional investors have reduced their positions on Bitcoin in the last two weeks.

According to data, between October 30 and November 11, there was a net outflow of over $2.5 billion from spot Bitcoin ETFs in the USA.

The weakening of institutional demand is considered one of the factors that makes it difficult for Bitcoin to recover after the decline.

On the other hand, political developments in the USA are thought to increase uncertainty regarding cryptocurrencies.

The focus of the markets is now on producer inflation data to be announced in the USA. It is considered that the data may reshape expectations regarding the Fed's interest rate policy.