Bitcoin Falls to Lowest Since August as ETF Outflows and Fed Hike Bets Weigh

Key Takeaways

• Bitcoin extended its decline to its weakest levels since August as tighter monetary policy expectations and weaker risk appetite pressured cryptocurrencies.
• US spot Bitcoin ETFs recorded approximately $1.44 billion in net outflows across five consecutive trading sessions through November 11.
• Crypto derivatives liquidations added to market stress, while technology-sector weakness reinforced caution toward risk-sensitive assets.

Bitcoin Retreats as Selling Pressure Builds

Bitcoin extended its losses during the November 12 trading session, falling below $72,000 as persistent ETF withdrawals and concerns about US interest rates weighed on demand. Reports published during the session described the cryptocurrency as trading at its lowest levels since August.

The decline developed against a difficult backdrop for speculative assets. Investors were reassessing the Federal Reserve’s policy outlook after stronger-than-expected inflation, while weakness in technology shares added to uncertainty.

The combination matters because Bitcoin’s price depends on both underlying demand and the willingness of investors to maintain risk exposure. When new buying weakens while leveraged positions are being closed, relatively modest selling can produce a larger market reaction.

However, the price move does not establish a single cause. ETF redemptions, interest-rate expectations and derivatives activity provide different parts of the explanation, and their influence can change throughout a trading session.

US Inflation Keeps Fed Rate Hikes in Focus

US consumer prices rose 0.4% month on month in October, according to the Bureau of Labor Statistics. Although that represented a slowdown from September’s 0.6% increase, it exceeded the 0.3% rise economists had expected.

The distinction between slower inflation and lower-than-expected inflation is important. Price growth can moderate from the previous month while still being strong enough to reinforce expectations of restrictive monetary policy.

Following the release, market reporting placed the probability of a rate increase at the Fed’s December 8–9 meeting at approximately 90%, citing CME FedWatch. That estimate reflected market pricing at the time and remains subject to change as new information emerges.

For Bitcoin, expectations of higher interest rates can create several pressures. Interest-bearing assets become more competitive, financing conditions tighten, and investors may reduce exposure to volatile holdings.

These relationships are not automatic. Bitcoin can respond differently depending on positioning and crypto-specific developments. In the current environment, however, the inflation surprise coincided with weaker sentiment rather than providing a catalyst for renewed buying.

Bitcoin ETF Outflows Point to Softer Demand

US spot Bitcoin ETFs recorded approximately $1.44 billion in combined net outflows over five consecutive trading sessions from November 5 through November 11, according to SoSoValue data cited in market reporting.

Farside Investors separately recorded approximately $299.8 million in net withdrawals on November 11. BlackRock’s IBIT accounted for $269.7 million, while Grayscale’s GBTC lost $39.1 million. Around $9 million of inflows into Morgan Stanley’s product partly offset those withdrawals.

The sustained withdrawal pattern suggests weaker demand through a major regulated investment channel. It also reduces a potential source of buying support while prices are under pressure.

ETF flows nevertheless require careful interpretation. They measure net subscriptions and redemptions across the products tracked, rather than the intentions of every institutional investor. They do not capture all activity in spot exchanges, derivatives or private transactions.

The key question is whether redemptions persist. A single positive session would offer some relief, but a more durable improvement would require evidence that demand is stabilising across several sessions.

Leveraged Liquidations Amplify Crypto Volatility

Derivatives activity added another layer of selling pressure. Reporting on the November 12 downturn placed market-wide crypto liquidations above $650 million over a rolling 24-hour period, with bullish positions accounting for most of the total.

Liquidations occur when leveraged traders no longer have enough collateral to support their positions. Exchanges then close those positions automatically.

During a falling market, the closure of leveraged long positions can generate additional selling. That can push prices lower and trigger further liquidations, particularly when buying interest is limited.

These totals are snapshots rather than fixed daily figures. They vary with the observation time, exchanges covered and provider methodology. They also refer to multiple cryptocurrencies, so they should not be presented as Bitcoin-only losses.

A reduction in leverage can eventually ease this source of pressure. It does not, by itself, demonstrate that spot demand has recovered or that prices have reached a lasting low.

Technology Weakness Reinforces Cautious Sentiment

The cryptocurrency decline also unfolded alongside weakness in US equities. The Nasdaq Composite fell 0.4% on November 12, closing at 25,366.09.

Technology shares and cryptocurrencies can respond to similar changes in liquidity expectations and investor risk appetite. Their simultaneous weakness therefore provides useful context, although it does not prove that equity selling directly caused Bitcoin’s decline.

For traders, the distinction matters. A recovery in technology shares could improve sentiment, but Bitcoin may remain under pressure if ETF withdrawals and crypto-specific selling continue.

What Could Shape Bitcoin’s Next Move?

The immediate outlook depends on whether demand improves as the market absorbs tighter policy expectations.

ETF flows will help indicate whether withdrawals are easing. Derivatives positioning will show whether forced selling is slowing, while incoming US economic data and Fed commentary could alter the expected path of interest rates.

The $70,000 area highlighted in the supplied market snapshot is a nearby psychological reference rather than a verified technical floor. A move toward a round-number level does not guarantee buying support.

Bitcoin’s weakness reflects pressure from both macroeconomic conditions and market structure. A more sustained recovery would require stronger buying interest alongside a reduction in forced selling; temporary price rebounds alone would offer less convincing evidence of stabilisation.

Get a generous deposit bonus on your first trade with Markets.com. Hurry—claim yours today!