Bitcoin fell below $74,000 on November 9, extending a volatile stretch that saw the leading cryptocurrency fail to hold levels above $80,000. On-chain analytics firm CryptoQuant said the recovery has been undermined by weak spot buying demand, negative US institutional flows, and declining stablecoin liquidity. Bitcoin briefly rose above $81,000 on November 4 but later retreated to around $75,000. CryptoQuant noted roughly $290 million in short liquidations during the short-lived rally, but warned that liquidation-driven buying does not equal new investor demand.
The derivatives selloff intensified as overextended long positions were forcibly closed. CoinGlass data showed total crypto liquidations hit $1.11 billion, with long positions bearing about 92% of forced closures in Bitcoin and Ethereum. Ethereum accounted for $492.49 million, or 44.4% of market-wide liquidations, despite its smaller market capitalization. Bitcoin followed with $298.46 million, or 26.9%. The largest single liquidation was a $48.16 million ETHUSDT order on Binance, which processed 49.4% of reported liquidation volume. Roughly 96.4% of the 24-hour liquidation total occurred within the latest 12 hours, consistent with a rapid liquidation cascade.
Institutional demand has also weakened. US spot Bitcoin ETFs recorded a net outflow of $411.9 million on November 6, with approximately $403 million coming from BlackRock’s IBIT fund. For the week of November 2–6, combined spot Bitcoin and Ethereum ETF outflows reached approximately $1.7 billion. CryptoQuant also highlighted contraction in stablecoin supply of about 4.9% over 30 days and negative 30-day average net spot volume delta readings on Binance and Coinbase of minus $28 million and minus $9.4 million, respectively. Short-term Bitcoin holders moved roughly 32,695 BTC to exchanges on November 6 while in loss positions, signaling possible additional selling pressure.
Broader sentiment remained risk-off after the US midterm elections, the Binance security breach, and stronger US employment data reinforced expectations that the Federal Reserve could raise interest rates again in December. BNB traded down 3.28% to $675.18 amid the Binance security concerns. CoinMarketCap’s Fear & Greed Index fell to 26, indicating fear, while the altcoin season index stood at 37. XRP and Solana underperformed Bitcoin with weekly declines of 13.16% and 9.43%, respectively, while TRON showed relative resilience with a 0.38% weekly gain. CryptoQuant said a sustainable Bitcoin rally would require a recovery in 30-day apparent demand growth, a positive Coinbase Premium Index, and renewed net inflows into spot ETFs. Ethereum faces an especially difficult recovery because its outsized liquidation burden suggests leveraged traders had positioned for a rebound that did not materialize.
