Bitcoin could fall toward $62,000 if key support levels fail, according to Lacie Zhang, research lead at Bitget Wallet. Her warning comes as expectations of a Federal Reserve interest rate hike strengthen, institutional demand weakens and cryptocurrency liquidations reach approximately $1.6 billion in 24 hours.
Bitcoin recently declined to $67,568, its lowest level since late August. Zhang identified the combination of rising Treasury yields, a stronger US dollar and continued selling pressure as significant obstacles to a market recovery.
Fed Rate Hike Expectations Increase Bitcoin Price Risks
Market concerns have intensified following October's US consumer price index reading, which increased 0.4% month over month and exceeded economists' expectations. The inflation figure has added to concerns that monetary policy could remain restrictive.
Zhang estimated that expectations for a Federal Reserve rate hike in December had climbed to approximately 85%. Higher interest rates could make borrowing more expensive and reduce investors' appetite for cryptocurrencies as they consider assets with more predictable returns.
Bitcoin's decline below the $72,000 and $73,000 levels also triggered additional selling across leveraged trading positions. Zhang identified $68,000 as immediate support, with a stronger demand zone between $65,000 and $66,000.
If Bitcoin decisively loses those levels, Zhang's analysis places the next potential downside targets between $62,000 and $63,000. On the upside, the cryptocurrency would need to reclaim the $72,000 to $74,000 resistance range to improve its technical outlook.
Crypto Liquidations Reach $1.6 Billion as ETF Outflows Continue
According to Data from CoinGlass showed approximately $1.6 billion in cryptocurrency liquidations over 24 hours, affecting 185,172 traders. Long positions accounted for approximately $1.5 billion, or 89.5% of the total, while short liquidations reached $170 million.
Selling also extended to major alternative cryptocurrencies. Ethereum fell below $2,000, while the total cryptocurrency market capitalization moved toward $2.4 trillion.
Institutional investment flows added to the negative market backdrop. US spot Bitcoin exchange-traded funds were approaching their sixth consecutive trading session of net withdrawals.
According to Farside Investors, approximately $1.4 billion was withdrawn from the funds between November 5 and November 11. BlackRock's IBIT accounted for more than $1 billion of those withdrawals.
Preliminary figures for Thursday indicated another $48 million in net outflows, although the data excluded pending figures from BlackRock and Fidelity.
MSCI Index Changes and Inflation Data Add to Market Uncertainty
Potential changes to global equity benchmarks could create another source of pressure for companies with substantial cryptocurrency exposure. MSCI plans to remove Strategy, Metaplanet and Yellow Cake from its global equity benchmarks effective November 30.
Estimates suggest the changes could result in as much as $8.8 billion in passive fund outflows. The projected figure represents a potential impact rather than confirmed withdrawals.
Investors are also watching October's US Producer Price Index for further indications of inflation and the Federal Reserve's likely policy direction. A stronger-than-expected reading could reinforce expectations of higher interest rates and weigh on Bitcoin and other speculative assets.
Zhang additionally pointed to the anticipated Anthropic initial public offering as a potential test of investor risk appetite. Weak demand or disappointing market performance could contribute to further selling across technology stocks and cryptocurrencies.
For Bitcoin, the $65,000 to $66,000 range remains central to Zhang's downside scenario. A sustained move above $74,000 could ease immediate selling pressure, while a decisive break below key support levels could expose the cryptocurrency to the projected $62,000 to $63,000 range.
Writer: Marcus Renfield Crypto Market Analyst & Onchain Writer
Marcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.
He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.
