Bitcoin extended its November retreat, slipping below $66,000 on November 14 as a series of market pressures drove both Bitcoin and Ethereum to new lows for the month. Ethereum also sank below $1,850, continuing its recent decline, while investors responded to tighter U.S. monetary policy signals, institutional selling, and a sharp contraction in stablecoin supply that deepened liquidity concerns.
Liquidity Dries Up Amid Fed Rate Hike Jitters
Recent economic data, including higher-than-expected U.S. inflation and employment numbers, have reinforced predictions that the Federal Reserve could continue raising interest rates. Following these figures, interest-rate futures began pricing in about 64 basis points of rate hikes for the upcoming 12 months—up from 37 basis points at the start of November, according to a report from Coinbase Institutional.
The prospect of tighter policy has put pressure on riskier assets, leading many investors to rebalance portfolios away from cryptocurrencies. Analysts note that higher borrowing costs can dampen demand for Bitcoin and Ethereum by increasing the appeal of cash and interest-bearing alternatives.
A significant reduction in stablecoin liquidity has further weighed on crypto markets. Coinbase Institutional highlighted that the aggregate supply of USDT, USDC, and DAI fell by $11.5 billion over the past 30 days, removing a substantial buffer of available capital that often helps absorb market shocks.
Coinbase Institutional emphasized that, “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.”
This contraction means fewer digital dollars are in circulation, making the ecosystem more vulnerable to downward moves as sellers find less immediate demand on the other side of trades.
Institutional Investors Lead ETF Outflows and Accelerating Liquidations
Market correction has also prompted sharp outflows from crypto investment products. U.S. spot Bitcoin ETFs recorded $1.07 billion in net withdrawals between November 9 and November 13, with Farside Investors reporting that BlackRock’s IBIT fund saw $908 million of those outflows. Ethereum-focused funds reported a further $398.9 million in redemptions over the same period.
Intensifying the sell-off, leveraged traders have faced heavy losses. CoinGlass data cited in market commentary showed $1.47 billion in crypto liquidations within a 24-hour period on November 13, primarily impacting long positions as prices tumbled.
CoinGlass data highlighted that, during the recent market downturn, nearly $1.47 billion was liquidated within just 24 hours, compounding the pressure on long positions across Bitcoin and Ethereum.
Ethereum traders were similarly affected, as an earlier $259 million in ETH liquidations forced out positions betting on a recovery above $2,000. Market observers also pointed to ongoing weakness in U.S. technology stocks and rising Treasury yields, which have contributed to broad-based risk reduction strategies spilling over into crypto asset classes.
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Key Price Levels in Focus for Bitcoin and Ethereum
Attention now turns to critical areas of technical support and resistance. Coinbase Institutional has identified $62,000 as a key level for Bitcoin; a failure to maintain stability above this line could see BTC test $60,000, the next major psychological threshold. Any recovery toward $66,000–$68,000 would likely signal some stabilization but would not automatically set off a new uptrend.
Ethereum, meanwhile, is being closely watched near the $1,800 mark. After dropping through $1,950 and $1,850, sustained weakness below $1,800 could set the stage for another move lower to $1,750. A rebound to $1,850–$1,900 would be the first indication of renewed buyer confidence.
Whether the current downturn continues may hinge on the next round of U.S. economic releases and whether ETF redemptions begin to slow. Market participants remain attentive to macroeconomic cues that could further shift the balance of risks for the sector.
