The price of Bitcoin (BTC) has declined another 3% over the past 24 hours and is nearing $70,000 U.S. as downward pressure continues to be exerted on cryptocurrencies.
In early trading on Nov. 12, Bitcoin is trading at $72,500 U.S. Other digital assets are also sliding lower, with Ethereum (ETH) down 3% and trading right at $2,000 U.S.
Analysts say that Bitcoin is now in danger of giving up all the gains it achieved since the end of August and falling back below $65,000 U.S.
Bitcoin had enjoyed a big rally between mid-August and early October, gaining more than 40% in a little less than two months.
For months, BTC had traded between $60,000 U.S. and $65,000 U.S. before breaking out and rallying as high as $86,000 U.S.
However, over the last month, Bitcoin and the broader cryptocurrency market have been pulled lower as negative sentiment towards risk assets grips the market.
Digital assets are being pressured after crypto exchange Binance disclosed a $6.3 billion U.S. theft. Volatile technology stocks and rising yields on Treasury bonds are also hurting crypto.
Analysts say that markets are adjusting to expectations of higher-for-longer interest rates as inflation in the U.S. remains stubbornly high.
Futures traders are pricing in a 100% chance that the U.S. Federal Reserve will raise interest rates 25 basis point at its Dec. 9 meeting.
Higher interest rates are a negative for risk assets such as cryptocurrencies.
There had been hope among crypto investors that Bitcoin could remain above its key support level of $80,000 U.S. and continue rallying back above $100,000 U.S.
But after falling below $80,000 U.S., the decline in Bitcoin’s price has accelerated. BTC is now down 30% over the past 12 months.
