Bitcoin's slide toward $73,000 has brought a major liquidation cluster near $60,000 into focus, while stablecoin supply is contracting at its fastest pace since June 2022, according to Glassnode's latest on-chain report shared on X. The analysis also points to ETF redemptions, weak U.S. demand, and recent buyers holding losses through the latest market decline.

Taken together, the findings describe weakening liquidity and demand across the market during the pullback, even as order-book positioning and large-wallet behavior show pockets of renewed demand.

Stablecoin Contraction and ETF Outflows Weigh on the Market

Glassnode reported that stablecoin supply declined by $14.2 billion over 30 days, marking its fastest contraction since June 2022 and reducing the pool of cash available across crypto markets. Stablecoin supply is widely watched as a proxy for capital that can be deployed within the market, since dollar-pegged tokens serve as the base trading asset across most major exchanges. Tether, the largest stablecoin, is also trading slightly below its $1 peg.

U.S. spot Bitcoin ETFs recorded $1.6 billion in net outflows across 20 sessions, crossing Glassnode's $1.5 billion threshold for an outflow stretch on November 9. ETF flows are widely tracked as a gauge of U.S. institutional demand since the spot products began trading in January 2024, so a stretch of this length removes a key demand channel at the same time stablecoin balances shrink. The Coinbase Premium, meanwhile, stayed negative throughout the decline from September's high, reaching its deepest discount since February.

Bitcoin also slipped below the short-term holder cost basis of $75,600, the average on-chain acquisition price of recently moved coins and a level watched because it marks where newer buyers sit between profit and loss. Only about 35% of short-term holder coins remain profitable, compared with nearly all at September's high. Around two-thirds of these coins were purchased between August and October, at prices reaching $83,600.

$60,000 Liquidation Cluster Draws Attention

Glassnode identified the largest liquidation cluster between $59,500 and $62,600. Liquidation clusters map the price zones where exchanges automatically close leveraged positions that no longer meet margin requirements, and concentrated zones are monitored because forced unwinds there can amplify moves in the direction of the trigger. These leveraged long positions originated near the August low, a level Bitcoin has not revisited. The firm warned that a move through $60,000 could trigger forced selling.

Most nearby long liquidation levels, however, have already cleared. Open interest has returned to September-high levels even as Bitcoin fell about 15%, suggesting traders added short positions. The largest liquidation cluster above current prices sits near $87,500, where leveraged shorts would face the equivalent forced buying.

Large Wallets Resume Accumulation

Glassnode's Accumulation Trend Score shows wallets holding 100–1,000 BTC and 1,000–10,000 BTC buying over the past week. Both groups had distributed coins through much of October. Other cohorts, including wallets above 10,000 BTC and those below one BTC, continue reducing balances.

Meanwhile, Binance and Coinbase order books have shown buy orders outweighing sell orders within 5% of Bitcoin's price since November 5. The largest visible bids sit between $68,000 and $72,500, while the order book remains thin up to roughly $84,000. Order-book depth near spot is tracked closely because it shows where larger orders can be absorbed without materially moving price.

Glassnode also placed Bitcoin's June low at $58,500, a level that preserves the higher-high structure established in September. A reclaim of $75,600 would return about half of short-term holder coins to profit. Data points likely to draw attention from here include the trajectory of stablecoin supply, the direction of ETF flows, and how price interacts with the $59,500–$62,600 liquidation cluster, the $58,500 June low, and the $75,600 cost basis.