Bitcoin fell to $62,081 on November 15, roughly 23% below its November 4 high. US political uncertainty, weak technology stocks, ETF withdrawals and liquidations all weighed on the price.
Bitcoin fell to $62,081 on November 15, losing approximately 23% from its November 4 high. The drop followed a short-lived recovery above $81,000 right after the US midterm elections.
The price later recovered toward $65,400 but stayed below $70,000.
Midterms and tech selloff hit Bitcoin
The November 3 midterm elections handed Democrats control of both the House and the Senate, which raised concerns about President Donald Trump's cryptocurrency agenda. Bitcoin dropped toward $75,600 as results emerged, then reached approximately $81,000 on November 4.
Technology stocks added pressure on November 5, when the Nasdaq declined approximately 5.5% and semiconductor stocks dropped around 12%. Bitcoin lost 5.5% during that session.
Hotter inflation and ETF outflows
Consumer prices also pushed investors away from risk. October consumer prices rose 0.4% from September, and core inflation increased 0.3%, both above market expectations.
Coinbase Institutional said that futures markets were pricing 64 basis points of Federal Reserve rate increases over the following year, up from 37 basis points at the beginning of November.
Fund withdrawals compounded the selling. Farside Investors recorded approximately $1.91 billion in net outflows from US spot Bitcoin ETFs across seven consecutive trading sessions between November 5 and November 13.
Corporate sales, thinner liquidity and liquidations
MARA Holdings disclosed the sale of 13,597 BTC for approximately $1.1 billion after the third quarter. The transactions were disclosed in November, although they were not necessarily executed during the latest market decline.
Coinbase Institutional estimated that the combined circulating supply of USDT, USDC and DAI, three stablecoins, had contracted by $11.5 billion over 30 days.
Forced selling then accelerated the fall. CoinGlass data from November 15 showed approximately $1.96 billion in cryptocurrency positions liquidated over 24 hours, with Bitcoin accounting for nearly $750 million.
Source: crypto.news
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