Bitcoin Falls Below $70,000 for the First Time Since August as ETF Outflows and Rate Fears Mount
Bitcoin Falls Below $70,000 for the First Time Since August as ETF Outflows and Rate Fears Mount
Bitcoin fell below $70,000 in overnight trading, breaking a closely watched psychological level for the first time since August as heavy selling, persistent withdrawals from U.S. spot Bitcoin exchange-traded funds and rising expectations of a Federal Reserve interest rate increase in December combined to push the world’s largest cryptocurrency to its weakest level in nearly three months.
The token traded at about $68,932 in early Asian hours on Friday, November 13, according to market data from Binance via Finnhub, after touching an intraday low of $68,528. It was down 6.5% on the day, extending a decline that has now erased more than 19% of Bitcoin’s value since October 2. Bitcoin closed Thursday at $72,884, after losing the $73,000 and $72,000 levels during the U.S. session.
A sixth straight weekly loss is now in sight
Bitcoin is down more than 5% so far this week. If the losses hold into the weekend close, it would mark a sixth consecutive week of declines — the longest losing streak of the year for the token, which only weeks ago was trading above $80,000.
The slide has dragged the wider crypto market down with it. Ethereum fell to about $2,007, down 2.1% in 24 hours and more than 10% for the week, and briefly slipped below the $2,000 mark. Roughly $550 billion has been wiped from the total cryptocurrency market capitalization since early October, according to market reports.
ETF outflows top $1.44 billion in five sessions
A steady drain of institutional money has been one of the main forces behind the sell-off. U.S. spot Bitcoin ETFs recorded about $1.44 billion in net outflows over five consecutive trading sessions from November 5 to November 11, according to data from Farside Investors, with $299.9 million leaving on November 11 alone. BlackRock’s iShares Bitcoin Trust led the withdrawals, accounting for the bulk of the redemptions.
The outflows matter because the ETFs have been one of the main channels through which institutional investors buy Bitcoin. When investors redeem shares, the funds must sell the underlying Bitcoin, adding direct selling pressure to the market. Year-to-date flows into the funds have now turned negative for the first time since they launched in 2024, according to market reports.
Hot inflation data changed the rate outlook
The trigger for the latest leg down was a hotter-than-expected October inflation report. The U.S. Bureau of Labor Statistics reported consumer prices rose 0.4% month over month in October, a reading that pushed traders to price in a greater chance of a Federal Reserve rate increase in December rather than a cut. Higher rates tend to hurt risk assets such as cryptocurrencies, which offer no yield, while making cash and bonds more attractive.
The shift in rate expectations has also lifted the dollar: the dollar hit a 19-month high this week as traders ramped up bets on a December rate increase. Technology stocks have also come under pressure, and CoinDesk reported that Bitcoin has fallen below its 50-week moving average of about $75,153 — a technical level traders watch as a gauge of the longer-term trend.
Liquidations accelerate the fall
The speed of the drop forced leveraged traders out of their positions, which amplified the move. About $680.8 million in leveraged cryptocurrency positions was liquidated within 24 hours, according to market data, including $325.3 million in Bitcoin positions. Data from CoinGlass put total crypto liquidations above $650 million over the same period.
Forced selling of this kind can create a feedback loop: falling prices trigger liquidations, and liquidations push prices lower still. Traders cited in market reports are now watching $65,000 as the next major support level, with some technical analysts pointing to $67,292 as an interim floor. On the upside, reclaiming the $72,000 to $74,000 range would be the first sign that selling pressure is easing.
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Why this matters
Bitcoin’s break below $70,000 is more than a round number. It is the level the market defended through the autumn, and losing it has put the token’s longer-term uptrend in doubt. The combination of ETF redemptions, a stronger dollar and a Federal Reserve that may tighten rather than loosen policy has removed the three supports that powered the rally earlier in the year.
The pressure is not confined to Bitcoin. The same forces — rate expectations, ETF flows and forced selling — are hitting the wider digital asset market, from Ethereum to the corporate Bitcoin holders whose shares have been punished in recent weeks. MSCI dropped Strategy from its global indexes, a decision that will force billions of dollars in passive selling of the largest corporate Bitcoin holder. And in a separate blow to the sector, the Justice Department won court authority to seize $1.2 billion stolen in the Binance hack as the FBI disrupted a North Korean crypto theft operation.
What to watch next
Traders will focus on the October producer price inflation report, due Friday morning at 8:30 a.m. ET, for further clues about the path of U.S. interest rates. A second hot inflation reading would likely strengthen the case for a December rate increase and add to the pressure on Bitcoin. The next update on ETF flows, covering Thursday’s session, will show whether the five-day streak of outflows has extended to six.
For now, the $70,000 level has flipped from support to resistance. Whether Bitcoin can reclaim it — or slides toward $65,000 — will be the market’s central question in the days ahead.
Frequently Asked Questions
How far has Bitcoin fallen from its recent highs?
Bitcoin is down more than 19% since October 2, when it was trading above $80,000, and has fallen below its 50-week moving average of about $75,153. It is on course for a sixth consecutive weekly loss.
Why are Bitcoin ETFs seeing outflows?
U.S. spot Bitcoin ETFs recorded about $1.44 billion in net outflows over five consecutive trading sessions from November 5 to November 11, according to Farside Investors data. The withdrawals accelerated after a hotter-than-expected October inflation report raised expectations that the Federal Reserve could raise interest rates in December, making risk assets less attractive.
What is the next key level for Bitcoin?
Traders cited in market reports are watching $65,000 as the next major support level, with $67,292 seen as an interim floor. On the upside, Bitcoin would need to reclaim the $72,000 to $74,000 range to signal that selling pressure is easing.
Is Ethereum also falling?
Yes. Ethereum traded at about $2,007, down 2.1% in 24 hours and more than 10% for the week, and briefly slipped below $2,000. Roughly $550 billion has been wiped from the total cryptocurrency market capitalization since early October.
This article is for informational purposes only and is not investment advice. Cryptocurrency prices are volatile and can move sharply in either direction.
Sources: FXStreet; BusinessToday; TradingKey; Business News Malaysia; Brave New Coin; Finnhub (Binance BTC/USDT market data).
