- Bitcoin fell 3.5% since midnight UTC, breaking below $70,000 and reaching $67,770, its lowest level since Aug. 19.
- Ether dropped to $1,900, its lowest price since Aug. 18, while the CoinDesk 20 Index declined 2%.
- Markets priced in a higher probability of a Federal Reserve rate increase, while a sell-off in Nvidia shares added pressure to crypto markets.
Bitcoin and Ether Hit 12-Week Lows
Bitcoin and ether, the two largest cryptocurrencies by market value, fell to their lowest levels in 12 weeks as traders increased bets on a Federal Reserve interest-rate increase next month. Higher rates strengthened the U.S. dollar and pushed bond yields higher, making riskier assets such as cryptocurrencies less attractive.
Bitcoin ($BTC$69,051.97) was down 3.5% since midnight UTC after falling through the psychologically important $70,000 threshold. The cryptocurrency dropped as low as $67,770, a price last seen on Aug. 19. Ether ($ETH$1,957.34) declined to $1,900, marking its lowest level since Aug. 18. The CoinDesk 20 Index also fell 2%.
Fed Rate Expectations Strengthen the Dollar
The cryptocurrency sell-off coincided with a rally in the U.S. currency. Data from the CME FedWatch tool showed traders assigning an 88% probability to a 25-basis-point interest-rate increase and a 12% probability to a 50-basis-point increase following this week’s hotter-than-estimated inflation data.
AVAX One Abandons Data Center Plans to Focus Entirely on Its Avalanche Treasury Strategy
The Dollar Index rose above 103, reaching its highest level since April 2025. A stronger dollar and rising bond yields can reduce demand for speculative investments by increasing the relative appeal of dollar-denominated assets and fixed-income securities.
Nvidia Resignation Adds Pressure to Risk Assets
Crypto markets also faced pressure after Nvidia CEO Jensen Huang resigned on Thursday. Shares of the artificial-intelligence chipmaker, described in the source as the world’s second-largest company by market capitalization, fell 4%.
Bitcoin has tended to track technology stocks closely, making weakness in Nvidia and the broader technology sector an additional factor weighing on the cryptocurrency market. The combination of rising interest-rate expectations, dollar strength, higher bond yields and technology-stock losses contributed to the sharp decline in Bitcoin, ether and other major digital assets.
Why This Matters
The decline highlights the sensitivity of cryptocurrency prices to changes in monetary-policy expectations and broader risk sentiment. Bitcoin’s fall below $70,000 and ether’s move to $1,900 came as investors reassessed the outlook for U.S. interest rates after stronger inflation data. Further rate expectations, currency movements and performance in technology stocks remain important market factors based on the reported trading conditions.
Frequently Asked Questions
Why did Bitcoin and ether fall?
Bitcoin and ether declined as traders priced in a higher likelihood of a Federal Reserve rate increase, strengthening the dollar and raising bond yields. A decline in Nvidia shares also added pressure to risk assets.
How low did Bitcoin and ether fall?
Bitcoin dropped as low as $67,770, its lowest level since Aug. 19. Ether reached $1,900, its lowest price since Aug. 18.
What were traders expecting from the Federal Reserve?
The CME FedWatch tool showed an 88% chance of a 25-basis-point rate increase and a 12% chance of a 50-basis-point increase after hotter-than-estimated inflation data.
