Bitcoin dropped below $70,000 on Friday, extending its recent slide as investor sentiment soured. The cryptocurrency was trading at $68,607.23, down 9.2% over the past week, according to CoinGecko. The decline came as the Crypto Fear & Greed Index hit 20, its lowest point in over four months, signaling extreme fear among investors.
Vikram Subburaj, CEO of crypto exchange Giottus, pointed to institutional outflows, tightening liquidity, and expectations of a December Federal Reserve interest rate hike as key factors behind Bitcoin’s weakness. He advised investors to avoid chasing short-term dips or using excessive leverage.
A report from 10x Research noted Bitcoin’s divergence from US equities. While the Nasdaq 100 gained 6.4% between November 5 and November 12, Bitcoin fell 5.9%. The research firm suggested Bitcoin was more influenced by rising Treasury yields and a stronger US dollar than by technology stocks. Meanwhile, Bitcoin’s trading patterns increasingly mirrored those of gold, which also declined 5.5% over the same period.
Institutional trading platform Talos warned of thin liquidity and elevated leverage amplifying market volatility. Bitcoin order-book depth across major exchanges dropped to $72 million on November 9, roughly 33% below normal levels. Tanay Ved, senior research associate at Talos, cautioned that the market remained vulnerable to sharp moves in either direction.
The selloff followed sustained withdrawals from US spot Bitcoin exchange-traded funds (ETFs). BlackRock’s iShares Bitcoin Trust (IBIT) saw more than $2 billion in net outflows across nine consecutive trading sessions through Wednesday, while broader funds shed nearly $1.44 billion over five sessions. Preliminary data from Farside Investors showed another $47.7 million in net outflows on Thursday, though figures for BlackRock and Fidelity were still pending.