Bitcoin Breaks Below $67,000, Hits Three-Month Low

More downside possible if the Fed raises rates by 50 basis points

Bitcoin fell below $67,000, hitting its lowest level in about three months. Selling pressure in the cryptocurrency market is building as concern over higher U.S. interest rates coincides with institutional outflows.

Bitcoin dropped as low as $66,915 during trading on Binance's Tether market on Nov. 13. That was its lowest price since Aug. 19. After falling below the previous day's low of $67,568, it later trimmed some losses to trade in the $67,300 range. The token was down about 4.3% from a day earlier.

Hotter-than-expected U.S. inflation data fueled concern about further monetary tightening. The consumer price index rose 0.4% in October from a month earlier, while core CPI, which excludes food and energy, climbed 0.3%. Rising Treasury yields and a stronger dollar, driven by expectations for higher rates, appear to have damped sentiment toward risk assets including Bitcoin.

Funds are also leaving the ETFs that had helped support buying demand. More than $2.5 billion has flowed out of U.S. spot Bitcoin ETFs on a net basis since Oct. 30 through the time of the report on Nov. 13. Rich Rosenblum, co-founder of GSR, said some long Bitcoin positions were liquidated because of volatility in AI-related stocks and dollar strength. He added that a management change at Nvidia is also weighing on risk assets.

Jeff Mei, chief operating officer at BTSE, said losses in Bitcoin and other cryptocurrencies could deepen if the Federal Reserve delivers a 50-basis-point rate increase instead of the expected 25 basis points.