Bitcoin has fallen back below the $74,000 mark despite a rebound in the U.S. stock market. Although it briefly recovered some losses thanks to a strong performance in tech stocks, concerns over potential interest rate hikes and continued investor withdrawals have limited its upward momentum.
As of 8 a.m. on November 12, Bitcoin was trading at $73,607, down 0.04% from the previous day, according to global cryptocurrency market site CoinMarketCap. It briefly regained the $74,000 level due to buying interest but subsequently gave back those gains.
Major altcoins are showing mixed trends. Ethereum, the second-largest cryptocurrency by market capitalization, fell 0.35% to $2,041. Solana traded at $82.66, down 0.37%. Ripple (XRP) also declined by 0.80% to $1.04. In contrast, Binance Coin (BNB) rose 0.07% to $677.41.
The cryptocurrency market has struggled to maintain upward momentum despite the rebound in the U.S. stock market. On November 11, the Nasdaq Composite rose 1.60%, and the S&P 500 increased by 1.31%. Investor sentiment in tech stocks improved following strong earnings from AI cloud company CoreWeave, but Bitcoin's gains remained relatively limited.
Market participants view the possibility of U.S. interest rate hikes as a significant concern. The Consumer Price Index (CPI) for October, released on November 10, showed a 0.4% increase from the previous month, exceeding market expectations of 0.3%. This persistent inflationary pressure has strengthened forecasts that the Federal Reserve may raise interest rates again in December.
Investor withdrawals are also continuing. According to Cointelegraph, U.S. Bitcoin spot exchange-traded funds (ETFs) recorded a net outflow of approximately $95 million on November 10. This marks four consecutive trading days of outflows, bringing the total net outflow for the month to around $1.6 billion.
Market watchers are keenly observing whether Bitcoin can maintain a support level around $73,000. Analysts suggest that if this price level fails to hold, Bitcoin could drop further into the low $70,000 range. CoinMarketCap's Fear and Greed Index currently stands at 26, indicating a state of 'fear.' Volatility is expected to persist until uncertainties surrounding U.S. monetary policy and institutional fund outflows are resolved.
Meanwhile, on the domestic cryptocurrency exchange Bithumb, Bitcoin was trading at 1,020,000 won ($74,971), up 0.58% from the previous day. The Kimchi Premium, which reflects the price difference between domestic and international Bitcoin prices, was recorded at 1.71%.
* This article has been translated by AI.
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