Crypto Market Sell-Off Deepens: Why Are Bitcoin, Ethereum and Solana Falling? - Coinpedia
The cryptocurrency market extended its decline on November 11, with Bitcoin trading near $73,400, Ethereum slipping toward $2,050, and Solana falling below $85 amid institutional withdrawals and liquidations.
The broader market has come under pressure from institutional withdrawals, leveraged liquidations and growing macroeconomic uncertainty. With several major cryptocurrencies approaching important support levels, investors are increasingly questioning whether the latest correction has further room to run.
Major Altcoins Extend Losses
The sell-off has extended beyond Bitcoin, with major altcoins recording steeper losses as investors reduce exposure to riskier digital assets. Bitcoin has struggled to recover above $75,000 after falling to its lowest levels since August. Ethereum has faced heavier selling, dropping toward $2,050, while Solana has slipped below $85.
The pressure is also visible across the wider market. XRP and other large-cap altcoins also faced significant selling pressure, highlighting the breadth of the correction.
Leveraged Liquidations Amplify Decline
Leveraged trading has amplified the market decline. Crypto futures liquidations reached approximately $1.1 billion in the 24 hours reported on November 9, with long positions accounting for a substantial share.
Ethereum recorded particularly heavy liquidations, reflecting the pressure on traders who had positioned for a price recovery. Meanwhile, futures trading volume surged above $180 billion as open interest declined to approximately $127 billion.
This combination points to significant position unwinding. As leveraged bullish bets are closed automatically, additional selling can push prices lower and trigger further liquidations, creating a cycle of downward pressure.
ETF Outflows and Economic Concerns
Institutional demand has weakened as investors withdraw capital from spot crypto investment products. US spot Bitcoin ETFs recorded two consecutive weeks of net outflows, while Ethereum and Solana investment products also experienced withdrawals.
Earlier in November, combined outflows across major US crypto ETFs exceeded $1.1 billion in a single week. These withdrawals have become an important headwind because ETF demand has been a significant source of institutional buying.
The broader economic environment adds another layer of pressure. Stronger-than-expected US employment data and renewed expectations of tighter Federal Reserve policy have reduced appetite for speculative assets. Political uncertainty following the US midterm elections has also raised questions about cryptocurrency regulation.
Market Outlook
The immediate outlook depends on whether Bitcoin can regain support and whether ETF flows begin to stabilize. Ethereum and Solana also need to attract fresh buying interest to prevent the correction from spreading further across altcoins.
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