Bitcoin Price Drops 14% to $65,000 Amid Weekend Selloff

The bitcoin price has experienced a significant downturn, dropping about 14% over the past week and trading near $65,200 on Saturday morning after sliding to about $65,000, according to Bitcoin Magazine Pro data. The downward movement broke below Friday's low of about $67,555, marking the weakest level since mid-August as weekend trading extended a broader selloff. Market watchers tracking the current bitcoin price note that the decline has followed a stronger dollar and expectations of a fully priced December Federal Reserve rate hike.

A week earlier on November 7, bitcoin traded near $75,750. The decline deepened following a leadership shake-up when Nvidia chief executive Jensen Huang resigned, triggering a sell-off in artificial intelligence stocks that may have contributed to pushing bitcoin below $72,000. Prices slipped toward $71,000 by Thursday evening before crashing to about $67,555 around midnight Eastern on Friday, recovering briefly toward $69,800 in the morning. A temporary pop above $70,000 following the producer-price report quickly faded, keeping prices pinned below $70,000 during Friday afternoon.

Selling pressure resumed on Friday evening, pushing values into the mid-$66,000s. After stabilizing briefly overnight near $67,000, selling resumed after 8 a.m. ET on Saturday, reaching a low around $65,500. The Labor Department reported Friday that the Producer Price Index for final demand rose 0.3% in October, falling short of the 0.4% increase expected by economists. On an unadjusted basis, the index rose 6.5% from a year earlier, marking the largest 12-month increase since November 2022.

Bond traders remained unconvinced by the slightly cooler monthly inflation figure. The 10-year Treasury yield climbed to a four-week high of 5.17% on Friday, while the U.S. dollar index maintained a 19-month high. Boston Fed President Susan Collins stated that additional monetary policy tightening may soon be appropriate, and San Francisco Fed President Mary Daly indicated that policymakers will likely raise interest rates. CME FedWatch data shows traders have fully priced in a quarter-point rate hike at the upcoming December 8-9 Fed meeting.

Bitcoin price slumped 14% to $65,000 as weekend selling broke previous lows amid a stronger dollar.

Chip stocks provided no support, with the iShares Semiconductor ETF falling over 3% and Advanced Micro Devices dropping more than 8%. Meanwhile, spot bitcoin ETF demand failed to offset the losses, as BlackRock's iShares Bitcoin Trust recorded nine straight days of outflows through Wednesday. Amid the price correction, miners received some operational relief when bitcoin's mining difficulty dropped by 9.13% at block 975,744, marking the largest difficulty adjustment cut since June.

Why it matters

The ongoing crypto market correction reflects broader macroeconomic pressures, including a strengthening U.S. dollar and anticipated Federal Reserve interest rate hikes that increase the cost of holding non-yielding assets. For global market participants, these shifts demonstrate how traditional monetary policy decisions and stock market movements in the technology sector directly impact digital asset valuations during periods of thin weekend liquidity.