Encoding issue when generating SQLite database from .sql file

I am trying to generate a SQLite database from a .sql file. The following line is in my .sql file:

INSERT INTO table(text) VALUES('“hello”');

I generate the SQLite database with the following command in Terminal:

cat output.sql | sqlite3 database.sqlite

Unfortunately, in the SQLite database that is generated, the quotes around hello appear as Ò. Why am I experiencing this encoding issue?