Why Bitcoin Is Dropping Amid Fed Rate Fears and Anthropic IPO
Bitcoin slipped toward 65,000 US dollars amid mounting interest rate fears and a potential capital flight toward the upcoming Anthropic initial public offering. The world’s largest cryptocurrency dropped to 65,026.44 US dollars before recovering slightly to around 65,900 US dollars on Saturday, according to CoinMarketCap.
Federal Reserve Rate Pressures
The primary weight on digital assets stems from United States monetary policy expectations. Markets are pricing in a nearly certain interest rate increase at the central bank’s upcoming meeting on December 8 and 9. CME FedWatch data put the probability of a 25-basis-point step at 89 percent by November 12.
San Francisco Fed President Mary Daly stated on November 12 that the central bank would likely need to continue lifting borrowing costs due to high inflation. Higher yields on short-dated US government debt create direct competition for speculative assets. A strengthening US dollar further drains momentum from liquidity-driven markets.
Anthropic IPO Draws Capital
Thomas Perfumo, chief economist at the crypto exchange Kraken, told MarketWatch that the expected initial public offering for Anthropic could pull capital away from risk assets as investors position themselves for share allocations. Demand for the stock reportedly exceeds available supply by roughly six times, according to Bloomberg data cited by MarketWatch.
Investors seeking access to the offering may be liquidating holdings in equities and digital currencies to raise cash. Bitfinex Alpha analysts characterized the downward price action as a broader risk-off retreat rather than a fundamental loss of confidence in Bitcoin itself. Margin trading and persistent outflows from spot Bitcoin exchange-traded funds amplified the downward momentum.
Fourth Capitulation Wave
The recent decline deepens a protracted correction following the asset’s record high above 126,000 US dollars in October 2025. Analyst James Check described the current environment to CoinDesk as the fourth capitulation wave since that peak. Many recent sellers likely entered the market weeks ago at prices exceeding 80,000 US dollars.
Check identified the current range as a deeply undervalued zone last touched in February and late June 2026, though he said that this does not definitively confirm a market bottom. The Anthropic public offering will test whether the liquidity drain is temporary once allocations clear. On December 9, the Federal Reserve announces its final rate decision of the year.