Bitcoin fell sharply on Saturday, dropping to around $63,430 and recording a daily loss of nearly 7% as selling pressure intensified and billions of dollars flowed out of investment funds linked to the cryptocurrency.
The decline renewed concerns over the ability of the cryptocurrency market to regain stability in the coming weeks.
Trading data displayed by TradingView on Nov. 14 showed Bitcoin falling to $63,430, down from approximately $68,226 on Friday. The drop extended a downward trend that has weighed on the world’s largest cryptocurrency since late October.
Bitcoin had already fallen below the closely watched $70,000 threshold during Friday’s trading session, before selling pressure accelerated on Saturday.
The decline coincided with continued withdrawals from U.S.-listed spot Bitcoin exchange-traded funds (ETFs). The funds recorded net outflows of $185.4 million on Nov. 13, according to market data, marking seven consecutive trading sessions of withdrawals.
Total outflows exceeded $2.5 billion between Oct. 30 and Nov. 13, indicating that some institutional investors have reduced their exposure to Bitcoin amid broader market volatility.
The movements are significant given the growing role of exchange-traded funds in directing demand for the cryptocurrency. Since their launch in the United States, the funds have become a major channel for attracting capital from institutional investors and asset managers.
Selling pressure also spread to cryptocurrency derivatives markets, where leveraged positions faced a wave of forced liquidations.
Bitcoin’s fall below $70,000 on Friday triggered the liquidation of positions worth nearly $1.5 billion over 24 hours, including approximately $1.3 billion in bets on rising prices, according to figures published on derivatives market activity.
More than 175,000 traders were affected by the liquidations, highlighting the risks faced by investors who borrow funds to increase their market exposure. When prices fall rapidly, trading platforms may automatically close positions that no longer meet margin requirements.
These forced closures can intensify market volatility, as falling prices trigger further liquidations and additional selling. This mechanism can accelerate declines beyond movements in spot trading.
The latest pressure is also linked to developments in the U.S. economy. Inflation data have reinforced expectations of continued monetary tightening, supporting the dollar and Treasury yields. These factors can reduce the appeal of higher-risk assets, including cryptocurrencies, for some investors.
Markets are closely monitoring the U.S. Federal Reserve’s next policy decisions, particularly ahead of its scheduled December meeting, amid uncertainty over the direction of interest rates and their potential impact on investment liquidity.
Despite the withdrawals, some institutional investors have continued to increase their Bitcoin holdings.
Strategy, a company focused on Bitcoin investment, announced that it had purchased an additional 1,036 Bitcoin for $81.9 million during the week ended Nov. 6, bringing its reported holdings to approximately 850,000 Bitcoin.
Data published on Morgan Stanley’s Bitcoin fund also showed purchases during the market downturn, reflecting diverging investment strategies. While some institutions have reduced their exposure, others appear to be using lower prices to increase their positions over the longer term.
These purchases, however, have not prevented Bitcoin from extending its losses during the first half of November. The cryptocurrency has fallen from levels above $78,000 at the beginning of the month to below $64,000, a decline of nearly 19% over two weeks.
Market participants are now watching whether Bitcoin can stabilize following the latest wave of selling.
Analyst Benjamin Cowen has warned that pressure could persist in the coming weeks, potentially extending until the Federal Reserve’s December meeting. He has also pointed to a level of around $54,000, which he identified as a reference point linked to Bitcoin’s average acquisition cost, as a level worth monitoring if the decline continues.
