Bitcoin has fallen below $69,000, pulling Ethereum and major altcoins into a broader market selloff. The decline is unfolding amid worsening macroeconomic conditions, shrinking crypto liquidity and billions of dollars in forced liquidations.

The market weakness is not occurring in isolation. US inflation data has revived expectations of another Federal Reserve interest-rate increase, while technology stocks face fresh uncertainty following Nvidia’s leadership shake-up. Institutional investors are withdrawing funds from Bitcoin exchange-traded funds (ETFs), and the supply of stablecoins is contracting.

Here are five factors contributing to the decline and making the selloff more difficult to reverse.

1. Inflation Revives Federal Reserve Rate-Hike Concerns

The latest US inflation figures have complicated the outlook for financial markets. October’s hotter-than-expected consumer inflation readings — published in the Consumer Price Index (CPI), the Labor Department’s primary inflation gauge — prompted investors to reassess the Federal Reserve’s next policy move.

BREAKING: October CPI inflation rises +0.4% month-over-month, above expectations of +0.3%. Core CPI inflation rose +0.3%, also above expectations of +0.2%. BLS will not be releasing year-over-year figures due to the October 2025 government shutdown. Inflation still appears to… — The Kobeissi Letter (@KobeissiLetter) November 10, 2026

https://x.com/KobeissiLetter/status/2120147133542125818?ref_src=twsrc%5Etfw

Markets are increasingly concerned that policymakers could raise interest rates in December instead of providing the relief that investors in risk assets had expected. December is the Federal Reserve’s next scheduled policy meeting, which is why a single month’s inflation print carried outsized weight across risk assets. Higher interest rates generally make speculative investments less attractive, and Bitcoin and altcoins have historically struggled when investors anticipate tighter financial conditions.

The US dollar has also strengthened, creating another headwind for the crypto market.

2. Nvidia’s Leadership Shake-Up Pressures Risk Assets

Crypto markets have become increasingly sensitive to developments in traditional technology markets. Nvidia’s leadership shake-up has added uncertainty for investors who are already questioning high valuations tied to artificial-intelligence companies.

Bitcoin declined alongside technology stocks as investors reduced their exposure to riskier assets. The correlation matters because crypto has increasingly traded like a group of high-beta technology investments — holdings that tend to move more sharply than the broader market — during periods of market stress.

When investors sell speculative technology stocks, Bitcoin can become another source of liquidity as portfolios are adjusted.

3. Stablecoin Supply Has Contracted by $14.2 Billion

A significant source of pressure is coming from within the crypto market. Glassnode reported that the supply of major stablecoins contracted by $14.2 billion over 30 days, marking the largest reduction since the 2022 bear market.

Total stablecoin supply fell below $280 billion as capital left the crypto ecosystem instead of merely rotating between tokens. Stablecoins function as crypto market cash reserves. USDT and USDC are pegged to the US dollar, so their combined supply serves as a widely used proxy for the dollar liquidity available inside crypto markets. Traders use USDT and USDC to buy Bitcoin, take positions in altcoins and provide liquidity across exchanges.

CryptoQuant reported that Tether’s supply was shrinking faster than it did after the FTX collapse:

Tether supply is shrinking faster than it did after FTX. USDT market cap is down $6.6B in 60 days, more than double the December 2022 drop. Stablecoin growth funded every rally this cycle. That fuel is draining. pic.twitter.com/WxQNDdwZER — CryptoQuant.com (@cryptoquant_com) November 10, 2026

https://x.com/cryptoquant_com/status/2120161592838856782?ref_src=twsrc%5Etfw

According to the post, USDT’s market capitalization had fallen by $6.6 billion over 60 days, more than twice the decline recorded in December 2022. When stablecoin supply contracts, fewer dollars remain available to support a market recovery.

4. Bitcoin and Ethereum ETF Investors Are Withdrawing Funds

Institutional demand has weakened as US spot Bitcoin ETFs — which began trading in January 2024 — recorded six consecutive trading sessions of net outflows through November 12.

The funds lost $47.7 million on November 12, bringing cumulative withdrawals across the six sessions since November 5 to approximately $1.49 billion. Ethereum ETFs, which followed in July 2024, recorded an additional $8 million in net outflows that day, bringing combined daily withdrawals across the two asset classes to $55.7 million.

BlackRock’s IBIT accounted for much of the earlier Bitcoin ETF outflows, losing $269.7 million on November 11 alone. The latest session, however, showed a smaller overall outflow, indicating that selling pressure had eased.

The withdrawals remain significant because spot ETFs have become one of Bitcoin’s largest institutional demand channels. Persistent outflows remove an important source of buying pressure, particularly when retail investors are reluctant to enter the market during a downturn.

5. More Than $1.4 Billion in Crypto Positions Were Liquidated

Leverage has added another layer of pressure. CoinGlass data showed $1.64 billion in crypto liquidations over a 24-hour period. Long positions accounted for $1.31 billion, meaning traders positioned for higher prices suffered most of the losses.

Bitcoin’s break below $70,000 accelerated the process. A liquidation occurs when losses on a borrowed position consume its posted collateral and the exchange closes it automatically. Traders who had used borrowed capital reached those thresholds, and the forced sales pushed prices lower, triggering additional liquidations across the market.

The process creates a feedback loop: falling prices eliminate leveraged buyers, while forced selling makes it more difficult for Bitcoin to stabilize.

What Could Help Bitcoin Recover?

Bitcoin would need more than a temporary bounce to reverse the current decline. One potential sign of improvement would be renewed growth in stablecoin supply, indicating that fresh capital was returning to crypto markets.

ETF flows would also need to turn positive. Continued institutional withdrawals make it difficult for Bitcoin to sustain a meaningful recovery. In addition, liquidation pressure would need to ease without another breakdown in spot-market demand.

Because stablecoin supply, ETF flows and liquidation totals are all tracked publicly by analytics platforms such as Glassnode and CoinGlass, each of these conditions can be monitored with hard data rather than sentiment alone. The current selloff combines macroeconomic pressure with a contraction in crypto liquidity, making it more complex than an ordinary leveraged correction.

Source: 99Bitcoins