On Friday morning, Bitcoin’s price hovered around $69,800 following a brief decline to approximately $67,555 around midnight Eastern, marking its lowest point since mid-August, as per the available data. The rebound persisted following the October producer prices, which increased at a rate below economists’ expectations. Meanwhile, the U.S. dollar continued to hover close to a 19-month peak, with traders fully anticipating a rate hike from the Federal Reserve in December. Bitcoin price was trading near 72,800 at this time Thursday. It declined to $71,000 by Thursday evening, subsequently falling late at nite, breaching the $70,000 mark and reaching a low by midnight. The move also pushed the bitcoin price below its 200-week moving average, a long-term trend line near $68,000. Buyers elevated it back above $69,000 prior to sunrise, and the recovery progressed toward $69,800 following the producer-price report.
The U.S. Dollar Index held above 103 Friday after a three-day rally took it to its highest level since April 2025. The 10-year Treasury yield was near 5.15% ahead of the data, and two-year yields, which track Fed expectations most closely, were on pace for their worst week since 2024, source reported. Traders still see an 88% chance of a quarter-point hike at the Fed’s Dec. 8-9 meeting and a 12% chance of a half-point move, CME FedWatch data show. Fed Governor Christopher Waller has added a 50-basis-point increase to the discussion, and New York Fed President John Williams said Thursday that inflation remains high and policymakers need to take further action. Higher rates raise the cost of holding an asset that pays no interest, and a stronger dollar tends to drain demand for risk assets. Both have pressured the bitcoin price since this week’s hotter-than-expected consumer price index.
Bitcoin has also broken from tech stocks. It fell 5.9% between Nov. 5 and Nov. 12 while the Nasdaq 100 gained 6.4%, a sign it is trading more on yields and the dollar than on the AI trade. Nasdaq 100 futures were up about 0.6% Friday after the producer-price report, as investors also weighed Nvidia’s announcement that Jensen Huang had resigned as CEO. The break below $70,000 triggered a cascade of compelled liquidation. Approximately $1.64 billion in cryptocurrency positions were liquidated within a 24-hour period, with speculative bets on price increases constituting nearly 89% of the total. Bitcoin positions alone represented $916 million of this figure. U.S. spot bitcoin ETFs have intensified the existing pressure. The funds recorded approximately $47.7 million in net outflows on Thursday, marking the sixth consecutive day of withdrawals, which totals around $1.49 billion for the period. BlackRock’s iShares Bitcoin Trust experienced a significant outflow of approximately $2 billion over a span of nine sessions leading up to Wednesday.
Consequently, the group has recorded net outflows totalling around $1.56 billion for the year 2026. Sentiment has deteriorated alongside it. A widely monitored cryptocurrency sentiment indicator fell to 20 on Friday, marking its lowest level since July 8, while Bitcoin appears poised for a second consecutive year of decline. Positioning has turned defensive. Average perpetual futures funding rates turned negative for the first time in a month as the price fell toward $68,500, meaning short sellers are now paying to hold their bets. Order books are also thin. Bitcoin order-book depth across major exchanges fell to $72 million on Nov. 9, roughly 33% below normal levels. “Liquidity remains thin while leverage stays elevated, leaving the market vulnerable to sharp moves in either direction,” said Tanay Ved.
The Labour Department reported on Friday that the Producer Price Index for final demand increased by 0.3% in October, falling short of the anticipated 0.4% monthly rise projected by economists, following a revised 1.4% gain in September. Core prices, excluding food and energy, rose by 0.3%, aligning with expectations. On an unadjusted basis, the headline index increased by 6.5% compared to a year earlier, marking the most significant 12-month rise since November 2022. The slightly cooler report alleviated some pressure on the dollar, which maintained its position above 103. However, the market has fully priced in a December rate hike, resulting in limited relief for the bitcoin price as the weekend approaches.
