Bitcoin drops below $70,000 for first time since August on inflation fears

Bitcoin fell below $70,000 on Friday for the first time since August, dropping as much as 5.4% to $67,628 — its lowest level since 19 August. By Friday morning in London it had recovered part of the loss to trade around $69,000.

The slide reflects a mix of macroeconomic pressures that have weighed on cryptocurrencies in recent weeks. High oil prices and elevated inflation have strengthened expectations of further interest-rate increases by the US Federal Reserve.

This week, a key US consumer price indicator showed another clear rise in October. The consumer price index excluding food and energy rose 0.3% from the previous month, exceeding expectations for the third month in a row. Overall inflation increased 0.4%.

The Fed is therefore likely to stick to its course and raise rates next month, a prospect that has added to pressure on the largest digital currency.