Why Bitcoin Price Is Falling Continuously: Coinbase Reveals the True Reason - Cryptonews.net
Bitcoin’s price has dropped below $67,000, losing 12% this week and triggering $663.83 million in liquidations, as Coinbase Institutional points to changing Fed rate expectations as the primary driver.
Coinbase Institutional has identified changing expectations of a Federal Reserve rate hike as the main factor behind Bitcoin’s continuous price fall. The cryptocurrency exchange’s weekly report argues that macroeconomic pressures, rather than the Binance hack, are weighing on the asset.
The catalyst is the latest consumer price index data. October CPI rose 0.4% month-over-month, while core CPI increased 0.3%, both figures exceeding expectations by 0.1 percentage point. This has led traders to anticipate a 25-basis-point rate hike in December, taking interest rates to 4%–4.25%.
Federal Reserve Governor Christopher Waller has signaled support for this smaller hike, though he warned that a core inflation reading above 0.3% could prompt a larger 50-basis-point move. Consequently, markets are now pricing in around 64 basis points of rate hikes over the next 12 months, up from 37 basis points earlier in November.
He warned that if core inflation rose above 0.3%, the Fed could consider a larger 50-basis-point hike.
For Bitcoin, a non-yielding asset, higher interest rates make the investment less attractive. This is compounded by a stronger dollar, which has climbed to 103.4, its highest level since April 2025.
Additional Selling Pressures
The downward pressure on Bitcoin is not limited to interest rates. Stablecoin supply has dropped by $11.5 billion over the past 30 days, the largest decline recorded by Coinbase Institutional.
Bitcoin spot ETFs have also seen heavy withdrawals. Since October 30, outflows have reached a record $3 billion, with November 4 being the only day to record an inflow of $74.6 million during this period.
Adding to the pressure, MSCI confirmed that Strategy will be removed from its global indexes after November 30. This could force funds that track these indexes to sell around $2.8 billion worth of Strategy shares.
Price Targets and Outlook
With Bitcoin now trading below $67,000, Coinbase Institutional sees $62,000 as the next major level if the $66,000–$68,000 range fails to hold. On the upside, a move above $73,000 could improve the chances of Bitcoin returning to $80,000.
I expect the momentum to pick up once Bitcoin breaks $50K. In fact, once it does, it could be a quick trip to the 2022 low below $16.5K. I wouldn’t be surprised to see a retest of that level before year-end.
Bitcoin critic Peter Schiff has warned that the decline could get worse. He believes selling may pick up if Bitcoin falls below $50,000, potentially sending it toward its 2022 low of under $16,500.
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