Cryptocurrency markets experienced sharp declines on November 13, as a combination of stablecoin contraction, withdrawals from U.S. spot Bitcoin exchange-traded funds (ETFs), and forced selling in derivatives markets converged to push prices lower. Bitcoin dipped below $69,000 during the morning, while Ether briefly traded under $2,000. Although partial recoveries were observed in subsequent hours, major assets remained lower on a 24-hour basis.
Stablecoin supply drops at fastest pace since 2022
On November 11, Glassnode reported that the total stablecoin supply had shrunk by $14.2 billion over 30 days, marking the swiftest contraction since June 2022. Stablecoins like USDT and USDC serve as crucial liquidity within crypto markets, allowing investors to move value and enter or exit positions. Redemptions reduce the available pool of on-chain dollars, which can leave markets more sensitive to sell pressure, though not every redemption results in direct crypto selling.
CryptoNews published data showing the total stablecoin supply had dropped below $280 billion, with a $6.6 billion reduction in USDT’s market capitalization over 60 days through November 7.
ETF outflows and liquidations add to the decline
Glassnode stated that U.S. spot Bitcoin ETFs posted $1.6 billion in net outflows across 20 trading sessions. Net outflows continued with $47.7 million leaving spot Bitcoin ETFs on November 12, while Ether ETFs also recorded net redemptions. These withdrawals signal reduced institutional participation and add downward pressure to prices.
CryptoNews reported that more than $1.64 billion in crypto derivatives positions were liquidated over 24 hours, with $1.46 billion involving long positions. Over 175,000 traders experienced liquidations in this period. These forced sales, particularly in highly leveraged markets, can intensify price movements during rapid downside events.
Glassnode described the decline in stablecoin supply as the sharpest contraction since June 2022, with ETF outflows and forced liquidations compounding the recent drop in digital asset prices.
U.S. spot Bitcoin ETF outflows and the ongoing reduction in stablecoin liquidity have made it increasingly important for investors to monitor real-time movements in both sectors. By using CryptoAppsy’s live charts and smart price alerts, users can track sudden shifts in Bitcoin, stablecoin supply, and ETF inflows or outflows—helping them stay informed about developments that could impact market liquidity and asset prices during periods of heightened volatility.
Prices react across major cryptocurrencies
Market data from CoinGecko, timestamped at 11:13 UTC on November 13, reflected a broad decline among major assets over the previous 24 hours. Bitcoin traded at $69,242, down 5.59%. Ether stood at $1,950.60, down 4.46%. BNB fell to $638.75, posting a 4.69% loss, while XRP dropped to $1.018 with a 2.82% decline. Solana traded at $80.37, down 3.06%.
Losses extended beyond the latest daily snapshot. As of that timestamp, Bitcoin was down 8.89% over seven days and 16.66% over 30 days. Ether had slipped 12.76% across seven days and 21.81% over 30 days. The Crypto Fear & Greed Index read 20, a level classified as “Extreme Fear.”
Liquidity signals and risk sentiment
Binance Research reported a 9.1% decrease in total crypto market capitalization through October, bringing it to $2.70 trillion. The analysis pointed to continued risk aversion as inflation, central bank policy tightening and broader equity market weakness affected sentiment.
Glassnode’s analysis noted that the 30-day average Coinbase Bitcoin premium remained negative, reaching its deepest discount since February. Additionally, Bitcoin traded below the $75,600 cost basis for short-term holders, with only around 35% of those coins held at a profit.
Wallets holding between 100 and 10,000 BTC showed signs of accumulation during the week, despite overall selling from smaller and larger holders, according to Glassnode.
Despite significant selling pressure, Glassnode observed that some wallet categories began accumulating Bitcoin during the downturn. However, analysts cautioned that this does not confirm a market bottom or reversal, as broader liquidity metrics remain uncertain.
What’s next for crypto markets?
Market watchers are focusing on further changes in stablecoin supply, ETF flow trends, and liquidation rates to assess whether selling pressure is likely to persist. If stablecoin supply continues to contract or ETF outflows accelerate, liquidity could remain under strain.
Bitcoin’s ability to reclaim and hold levels above $70,000, as well as the behavior of liquidation activity, will provide key signals for short-term sentiment. While the precise triggers for the selloff remain debated, monitoring these indicators will be important for investors seeking to interpret rapid price swings.
