Major Crash in Bitcoin: Fears of Dropping to $60,000 Following $2 Billion in Liquidations - Kriptofoni

Bitcoin's decline cannot be attributed to a single development. Selling pressure that began strengthening in late October accelerated during the second week of November as economic data from the United States and growing risk aversion across global financial markets weighed on investor sentiment. The cryptocurrency has lost approximately 25% of its value since October 21, falling as low as $62,112 on November 15 before staging a limited recovery above $64,000.

One of the most significant factors behind the selling pressure is the shift in expectations surrounding the Federal Reserve's interest rate policy. The US Consumer Price Index (CPI) data for October showed a monthly increase of 0.4%, exceeding market expectations. Following strong employment figures, higher-than-expected inflation prompted investors to price in a greater probability of an interest rate hike in December. The US Dollar Index rising above the 103 level created an unfavorable environment for Bitcoin.

The Producer Price Index (PPI) data released on November 13 showed a monthly increase of 0.3%, below expectations of 0.4%. However, annual PPI climbed to 6.5%, indicating that inflationary pressures remain elevated. Consequently, the slowdown in monthly producer inflation was insufficient to eliminate concerns about interest rates. If the Federal Reserve maintains restrictive monetary policy or introduces additional rate hikes, Bitcoin and other non-yielding assets could become less attractive.

ETF Outflows and Liquidity Pressure

Institutional investment products that played an important role in Bitcoin's previous rallies have become a notable source of pressure during the current downturn. According to a November 14 report by The Block citing SoSoValue data, US spot Bitcoin ETFs recorded approximately $1.07 billion in net outflows during the latest trading week. This marked the second consecutive week in which the funds experienced net withdrawals exceeding $1 billion. Total outflows across seven consecutive trading days reached $1.91 billion.

On Friday, November 13 alone, approximately $185.5 million was withdrawn from spot Bitcoin ETFs. BlackRock's iShares Bitcoin Trust (IBIT) recorded $143.5 million in net outflows, while Fidelity's FBTC experienced withdrawals of $41.9 million. Total outflows over the previous two weeks reached approximately $2.35 billion. These figures indicate that demand through Bitcoin ETFs has been insufficient to offset selling pressure as the cryptocurrency's price continues to decline.

Coinbase Institutional's assessment suggests that the problem may be connected to a broader contraction in liquidity. The research indicated that the combined supply of USDT, USDC, and DAI had declined by $11.5 billion over the previous 30 days. A contraction in stablecoin supply suggests that the amount of capital available to support buying activity in the cryptocurrency market is weakening.

Liquidations and Technical Analysis

One of the most important technical factors behind the sharp market decline is the forced closure of leveraged positions. According to market reports published on November 15 citing CoinGlass data, cryptocurrency liquidations over a 24-hour period reached approximately $2 billion. Around $774 million of that amount involved Bitcoin positions, while $488 million came from Ethereum positions. Most of the liquidations affected long positions opened by traders expecting prices to rise.

Martin Lee, Head of Market Insights at DWF Labs, offered a more cautious assessment of the technical outlook. He identified Bitcoin's decline below its 50-week moving average, located around $75,000, as an important sign of weakness. He warned that losing the 200-week moving average near $68,000 could send the price toward $60,000. Bitcoin's decline to approximately $62,000 on November 15 indicates that a significant portion of the downside risk highlighted by the analyst has already materialized.

Blockchain analyst James Check stated that Bitcoin had entered a historically significant valuation zone. He described the current selloff as Bitcoin's fourth major capitulation event since its most recent peak. Check believes Bitcoin has returned to a deep-value zone previously observed in February and June 2026, though he specifically emphasized that current price levels cannot be considered a confirmed market bottom.

Diverging Scenarios

Lacie Zhang, Head of Research at Bitget Wallet, emphasized the need to assess macroeconomic uncertainty, spot ETF outflows, leveraged position liquidations, and weakness in technology stocks together. In Zhang's November 14 analysis, $65,000 and $62,000 were identified as support levels following $68,000. With these levels having been tested, whether Bitcoin can defend $60,000 has become increasingly important.

Jeff Ko, Chief Analyst at ViaBTC, pointed out that high inflation does not always have a one-directional impact on Bitcoin. According to Ko, persistent inflation could support Bitcoin's long-term appeal as a hedge against monetary depreciation. However, this argument does not eliminate the short-term liquidity pressure caused by high interest rates. Therefore, Bitcoin's long-term investment thesis and its short-term price movements should be assessed separately.

While analysts warn that Bitcoin could experience another decline toward $60,000, they also emphasize that current prices require a different assessment from a long-term investment perspective. The cryptocurrency market remains highly volatile, with the next significant move likely to be influenced by upcoming Federal Reserve decisions and market liquidity conditions.