Key takeaways

  • Bitcoin's selloff intensifies as Ethereum approaches $1,800
  • Crypto ETFs lose approximately $1.46 billion in one week
  • Coinbase identifies an $11.5 billion stablecoin liquidity contraction

Bitcoin's November selloff has deepened toward the $64,000 region, while Ethereum has fallen toward $1,800 as institutional withdrawals, shrinking liquidity and renewed fears of Federal Reserve interest-rate hikes pressure cryptocurrency markets.

BTC fell below $66,000 on November 14, extending its decline after losing the psychologically important $70,000 threshold a day earlier. Ethereum simultaneously slipped below $1,850, reinforcing weakness across the two largest cryptocurrencies.

According to Coinbase Institutional's latest market report, the combined supply of USDT, USDC and DAI declined by a record $11.5 billion over 30 days, removing a significant source of potential buying liquidity.

Why Is Bitcoin Crashing? Fed Fears Meet $11.5B Liquidity Drain

The latest decline comes as investors reassess expectations for U.S. monetary policy following stronger-than-expected inflation and employment figures.

Coinbase reported that interest-rate futures were pricing approximately 64 basis points of Federal Reserve hikes over the following 12 months, up from 37 basis points earlier in November.

Higher borrowing costs can reduce demand for speculative assets, particularly Bitcoin and Ethereum, while making cash and interest-bearing investments comparatively more attractive.

The pressure follows an earlier Bitcoin decline below $73,000 when inflation data and ETF withdrawals already threatened the market's recovery.

Stablecoin contraction adds another challenge. With fewer digital dollars circulating, the market may have less readily available capital to absorb selling pressure.

Bitcoin and Ethereum ETFs Lose $1.46B as Liquidations Accelerate

Institutional demand has weakened considerably during the correction.

Farside Investors data shows U.S. spot Bitcoin ETFs lost approximately $1.07 billion between November 9 and November 13, while Ethereum funds recorded another $398.9 million in net withdrawals.

BlackRock's IBIT accounted for roughly $908 million of Bitcoin ETF outflows during those five trading sessions.

The selling followed an earlier $50 billion Bitcoin futures exposure warning, when elevated leverage threatened to accelerate losses if BTC broke important support levels.

Indeed, CoinGlass data cited in recent market reporting indicated approximately $1.47 billion in cryptocurrency liquidations during a 24-hour period on November 13, primarily affecting leveraged long positions.

Ethereum experienced similar pressure, with an earlier $259 million ETH liquidation wave exposing traders who had positioned for a rebound above $2,000.

The broader selloff also coincides with rising U.S. Treasury yields and pressure on technology stocks, leaving cryptocurrencies vulnerable to further risk reduction.

Bitcoin Price Prediction: Is $60K Next as ETH Tests $1,800?

Bitcoin's next important technical reference is $62,000, a level identified by Coinbase Institutional before the latest decline.

If BTC cannot stabilize above that region, $60,000 becomes the next major psychological downside target. Conversely, recovering $66,000–$68,000 would improve the immediate outlook, though not necessarily reverse the wider correction.

Ethereum faces a similar test around $1,800 after losing the $1,950 and $1,850 levels monitored in earlier market analysis.

A sustained break below $1,800 could expose $1,750, while reclaiming $1,850–$1,900 would offer an initial sign of stabilization.

Further direction may depend on upcoming U.S. economic data and whether ETF withdrawals begin to slow, especially after strong jobs data intensified expectations of tighter monetary policy.

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Emir Abyazov

Editor-in-Chief at Coinpaper, scaling data-driven editorial ops, SEO-led discovery, and audience-first storytelling across crypto, AI, and fintech.

https://coinpaper.com/38863/why-is-bitcoin-crashing-btc-breaks-below-64-k-as-ethereum-falls-toward-1-800

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