Bitcoin Falls Below $70,000 as Crypto Selloff Worsens
Bitcoin fell below $70,000 on Friday, November 13, extending a prolonged crypto selloff as investors dealt with rising interest rate expectations, institutional fund withdrawals, and renewed weakness in tech stocks. Bitcoin fell to around $68,800 in early trading, reaching its lowest level since August and putting it on course for a sixth consecutive weekly decline. Bitcoin has now lost more than 20% from its late-September highs, reversing much of the optimism that supported its summer recovery.
The downturn spread across the broader cryptocurrency market, with Ethereum falling below $2,000 and other major digital assets recording substantial losses. A stronger U.S. dollar, persistent inflation, and concerns about the Federal Reserve's next policy decision have reduced investors' appetite for speculative assets. Meanwhile, continued selling in cryptocurrency exchange-traded funds and more than $1 billion in leveraged liquidations intensified the market's decline.
Bitcoin ETF Outflows Signal Weakening Institutional Demand
Institutional investors have become an important source of selling pressure as U.S. spot Bitcoin ETFs experience sustained withdrawals. According to data compiled by SoSoValue and reported by CoinDesk, the funds have recorded approximately $1.56 billion in net outflows since the beginning of 2026, including more than $500 million during the latest week. The reversal suggests institutional demand has weakened considerably as Bitcoin struggles to regain momentum.
The withdrawals have coincided with deteriorating liquidity across cryptocurrency markets. Data from Glassnode indicated that the circulating supply of stablecoins contracted by approximately $14.2 billion over 30 days through November 9, reducing the pool of capital available for digital asset trading. With fewer buyers absorbing selling pressure, price declines can accelerate, particularly when leveraged traders are forced to close their positions.
Ethereum and Altcoins Slide as Liquidations Accelerate
Bitcoin's weakness dragged down the broader cryptocurrency market Friday, with Ethereum trading near $1,930 after falling more than 4%. Solana, XRP and other major cryptocurrencies also declined as investors reduced exposure to riskier assets. The widespread losses demonstrated how closely digital asset prices remain tied to broader market sentiment, particularly during periods of financial uncertainty.
The selloff triggered more than $1.3 billion in cryptocurrency futures liquidations over a 24-hour period, according to CoinGlass data cited by CoinDesk. Most of those liquidations involved traders betting on higher prices, creating additional selling pressure as exchanges automatically closed leveraged positions. The resulting volatility reinforced concerns that cryptocurrency markets could remain unstable until institutional demand and trading liquidity improve.
Fed Rate Fears and Strategy Index Removal Add Pressure
Macroeconomic conditions have become another major obstacle for Bitcoin. October's hotter-than-expected consumer inflation report strengthened expectations that the Federal Reserve could raise interest rates again in December, pushing the dollar toward a 19-month high. Higher borrowing costs typically reduce demand for speculative investments as investors shift toward assets offering more predictable returns.
Cryptocurrency markets also faced uncertainty surrounding Strategy (MSTR), the world's largest publicly traded corporate Bitcoin holder. MSCI confirmed plans to remove certain digital asset treasury companies, including Strategy, from its indexes effective November 30. The decision could trigger selling by funds tracking those benchmarks and complicate Strategy's ability to raise additional capital for Bitcoin purchases, although it does not directly require the company to sell its cryptocurrency holdings.
Looking Ahead
Bitcoin's immediate outlook will depend on whether selling pressure begins to ease after its break below $70,000. Investors will be watching ETF flows, liquidation activity and the cryptocurrency's ability to stabilize around recent lows. A recovery in institutional demand could help restore confidence, while continued withdrawals could leave the market vulnerable to further declines. The Federal Reserve's December meeting and the implementation of MSCI's index changes will provide additional tests for cryptocurrency investors. With Bitcoin heading toward another weekly loss and broader financial markets remaining volatile, the coming weeks could determine whether the latest downturn stabilizes or develops into a more prolonged correction.
