Bitcoin briefly dropped below $70,000 on Friday, hitting its lowest level in nearly three months, even as Asian stocks advanced. Rising bond yields and persistent inflation concerns continued to weigh on cryptocurrencies and other non-yielding assets.
The largest cryptocurrency fell as much as 2.2%, slipping below the $70,000 mark for the first time since August 20. It later pared some losses to trade around $70,200 at 11 a.m. Singapore time.
Crypto stocks dropped in overnight trading. Strategy fell 3%; Bitmine, Coinbase, SharpLink Gaming, and Circle fell 2%.
The decline came as Asian equities rallied, with the MSCI Asia Pacific Index gaining 1%, led by advances in South Korea and Taiwan. However, US Treasury yields remained near Thursday's highs amid concerns about persistent inflation, reducing the appeal of assets that do not generate income.
Bitcoin has faced several headwinds in recent weeks. Elevated oil prices and stubborn inflation have strengthened expectations that the Federal Reserve could raise interest rates further. Meanwhile, Democrats' expected control of both chambers of the US Congress next year, following the midterm elections, has fueled concerns about increased regulatory scrutiny of the cryptocurrency industry.
Institutional demand has also weakened. US-listed spot Bitcoin exchange-traded funds recorded more than $2.5 billion in net outflows between October 30 and November 11, marking a sustained retreat by institutional investors over the past two weeks.
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