Bitcoin Hits Two-Week Low With Risk Appetite Muted After Wipeout

Takeaways by Bloomberg AI

Bitcoin fell as much as 3.1% to $103,578, coming close to tumbling below an Oct. 17 low.

Crypto currencies face several headwinds, including outflows from exchange-traded funds, a fresh wave of liquidations and concerns about potential selling by digital-asset treasury firms.

The macroeconomic backdrop isn’t helping, with expectations for a Federal Reserve interest rate cut in December largely being quashed, signaling a higher-for-longer environment.

Bitcoin continued its slide as a range of indicators underscored the bleak mood among crypto traders.

Bitcoin fell as much as 3.1% to $103,578, coming close to tumbling below an Oct. 17 low. Ether, the second-largest token, fell 3.4% to below $3,500, deepening a retreat from recent highs.

The losses come three weeks after a historic liquidation event wiped out billions of dollars in leveraged crypto positions. In the aftermath, investors appear reluctant to wager on Bitcoin staging a comeback.

Crypto currencies face several headwinds, including outflows from exchange-traded funds, a fresh wave of liquidations and concerns about potential selling by digital-asset treasury firms. A further retreat for Bitcoin would bring investor focus to the closely-watched $100,000 level, which it only briefly breached in mid-June.



Traders have been “hesitant to re-engage in size,” market maker Keyrock said in a note. Open interest in perpetual futures contracts for Bitcoin sits at about $68 billion, roughly 30% below its October peak. And the liquidations keep coming: in the past 24 hours, selling pressure across all cryptocurrencies wiped out $1.2 billion in bullish bets, according to CoinGlass data.