Bitcoin Hits 12-Week Low as Fed Rate Fears Erase Summer Gains

Bitcoin Hits 12-Week Low — Bitcoin has fallen to its lowest level in twelve weeks, erasing the majority of its summer rally as fears of renewed Federal Reserve interest rate hikes and persistent outflows from spot ETFs pressure the market.

The leading cryptocurrency traded near $68,000, a level last seen in late August, according to data from Decrypt. The retreat marks a significant reversal from the multi-month highs achieved earlier in the season.

Market sentiment has been soured by stronger-than-expected inflation data, which has fueled speculation that the Fed may need to raise rates again rather than cut them. This shift in expectations has weighed heavily on risk assets globally, including Bitcoin.

Compounding the macro pressure, U.S. spot Bitcoin exchange-traded funds have recently experienced consistent daily net outflows, removing a key source of institutional buying support that had previously driven prices higher.