Why Is Bitcoin Crashing? BTC Breaks Below $64K as Ethereum Falls Toward $1,800 - Coinpaper

Bitcoin's November selloff has deepened toward the $64,000 region, while Ethereum has fallen toward $1,800 as institutional withdrawals, shrinking liquidity and renewed fears of Federal Reserve interest-rate hikes pressure cryptocurrency markets.

BTC fell below $66,000 on November 14, extending its decline after losing the psychologically important $70,000 threshold a day earlier. Ethereum simultaneously slipped below $1,850, reinforcing weakness across the two largest cryptocurrencies.

According to Coinbase Institutional's latest market report, the combined supply of USDT, USDC and DAI declined by a record $11.5 billion over 30 days, removing a significant source of potential buying liquidity.

Fed Fears Meet Liquidity Drain

The latest decline comes as investors reassess expectations for U.S. monetary policy following stronger-than-expected inflation and employment figures.

Coinbase reported that interest-rate futures were pricing approximately 64 basis points of Federal Reserve hikes over the following 12 months, up from 37 basis points earlier in November.

Higher borrowing costs can reduce demand for speculative assets, particularly Bitcoin and Ethereum, while making cash and interest-bearing investments comparatively more attractive.

ETF Outflows and Liquidations

Institutional demand has weakened considerably during the correction.

Farside Investors data shows U.S. spot Bitcoin ETFs lost approximately $1.07 billion between November 9 and November 13, while Ethereum funds recorded another $398.9 million in net withdrawals.

The selling followed an earlier $50 billion Bitcoin futures exposure warning when elevated leverage threatened to accelerate losses if BTC broke important support levels.

CoinGlass data indicated approximately $1.47 billion in cryptocurrency liquidations during a 24-hour period on November 13, primarily affecting leveraged long positions.

Technical Levels and Next Steps

Bitcoin's next important technical reference is $62,000. If BTC cannot stabilize above that region, $60,000 becomes the next major psychological downside target.

Ethereum faces a similar test around $1,800 after losing the $1,950 and $1,850 levels. A sustained break below $1,800 could expose $1,750.

Further direction may depend on upcoming U.S. economic data and whether ETF withdrawals begin to slow, especially after strong jobs data intensified expectations of tighter monetary policy.