Bitcoin lost about 15% over the week: at the time of writing, its value was approximately $64,500 versus $75,750 a week earlier. The cryptocurrency hit a new low since mid-August amid a strengthening dollar, expectations of a rate hike by the US Federal Reserve and a sell-off in technology stocks.
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The fall intensified in the second half of the week. After the announcement of the resignation of Nvidia CEO Jensen Huang, Bitcoin fell below $72,000, and on Friday to about $67,600. A brief recovery above $70,000 after the publication of the US Producer Price Index did not change the overall dynamics. On Saturday, the decline continued: first the price dropped to about $65,200, and then to $64,500. The cryptocurrency fell in price at the same time as other risky assets, so it would be wrong to explain the fall only by events at Nvidia.
One of the pressure factors was expectations of further tightening of US monetary policy. Traders on Friday pegged the likelihood of a 0.25 percentage point Fed rate hike in December at 88% and a 0.5 percentage point hike at 12%, according to CoinDesk. The dollar index rose to its highest since April 2025. Higher rates make interest-bearing instruments more attractive and may reduce interest in Bitcoin, which itself does not generate interest income.
Additional pressure on the crypto market was exerted by the outflow of funds from American spot bitcoin funds. According to data from Farside Investors cited by CoinDesk, investors withdrew about $1.44 billion in six trading sessions through Thursday. The fall in prices was also accompanied by the forced closing of positions of traders who used borrowed funds, which could intensify the downward movement.
Technology stocks ended the week lower. On Friday, iShares Semiconductor fell more than 3%, AMD fell more than 8% and the Nasdaq 100 lost 1.22%. The next important event for the market will be the publication of Nvidia’s quarterly reports. Over the weekend, cryptocurrency trading continues with U.S. stock markets closed and generally less liquid, which can increase price fluctuations.
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