Bitcoin’s recent rally came to a halt on Friday, November 13, 2026, as the cryptocurrency dropped more than 4% to $68,500. This decline erased gains accumulated over the past three months, reigniting doubts about whether Bitcoin’s bear market had truly ended. Crypto analytics firm CryptoQuant reported the weakest demand reading for Bitcoin since December 2023, while Bitcoin exchange-traded funds turned into net sellers.
The downturn extended beyond Bitcoin, affecting other parts of the crypto market. Tether’s USDT, the largest stablecoin pegged to the U.S. dollar, saw its total value shrink by $7.7 billion over the past two months, indicating a reduction in available cash within crypto markets. Inflation emerged as the primary driver of this shift, with Tuesday’s Consumer Price Index report revealing a 0.4% rise in October, surpassing economists’ expectations.
Investors are increasingly favoring yield-bearing assets over non-yielding ones like Bitcoin and gold. Chris Beauchamp, chief market analyst at IG Group, noted that investors are moving away from Bitcoin and gold to seek income from government bonds. Gold prices also fell, trading near $3,900 an ounce on Friday, down from a January peak of about $5,600.
Bitcoin’s struggles are compounded by political and economic factors. The midterm elections, which handed Democrats control of Congress, posed a setback for the crypto industry. However, Stephen Coltman, head of macro at 21Shares, suggested that the regulatory landscape would remain stable for the next two years. Additionally, the AI boom is competing for investment dollars, creating what 21Shares calls an “AI black hole” that draws money away from Bitcoin and gold.