Bitcoin's latest sell-off intensified with the leading cryptocurrency dropping nearly $8,000 in a week from above $81,000 to below $73,000. The decline was accompanied by heavy outflows from US spot Bitcoin ETFs, including $1.28 billion in net withdrawals during the first trading week of November and another $95 million on November 10, according to SoSoValue. BlackRock's IBIT accounted for $78 million of the latest outflows, marking its eighth consecutive session of redemptions.
Beyond visible macro pressures and ETF redemptions, analysts pointed to three less obvious factors. First, CryptoQuant reported that USDT's market capitalization contracted by roughly $6.6 billion over 60 days, the largest decline since its data series began in mid-2022 and larger than the contraction following FTX's collapse. Since stablecoins represent deployable dollar liquidity, the shrinking supply reduces marginal buying power for cryptocurrencies. CryptoQuant also said Bitcoin's apparent demand fell by about 284,000 BTC over 30 days, the fastest drop since March 2025, while the Coinbase Premium Index remained negative for 30 consecutive days and the Bull Score Index deteriorated from 90 to 20.
Second, leveraged positioning amplified downside pressure. Crypto analyst Joao Wedson highlighted an imbalance in his Long & Short Liquidation Exposure within ±10% metric: approximately $579 million in leveraged longs versus $147 million in shorts were exposed to liquidation on a 10% move. As Bitcoin fell, forced long liquidations cascaded into additional selling. CoinGlass data showed nearly $725 million in crypto futures liquidations over 24 hours after Tuesday's US inflation report, with Bitcoin accounting for about $200.5 million and longs representing roughly 85% of BTC liquidations. Bitcoin funding rates remained positive near 0.0078%, indicating longs were still paying shorts.
Third, some analysts suspect major IPOs may be pulling attention and liquidity from risk assets. Crypto Rover noted Bitcoin fell nearly 29% into SpaceX's IPO earlier this year and has now declined about 16% ahead of Anthropic's planned Nasdaq debut around November 19. Anthropic's SEC filing proposes selling 825 million Class A shares at $70 to $78, potentially raising up to $64.4 billion, with a separate placement possibly taking total capital raised above $90 billion. BitMEX co-founder Arthur Hayes has previously warned that heavy AI share issuance could affect financial conditions and demand for Bitcoin. While causation remains unproven, the pattern has added to bearish sentiment.
Against this backdrop, Ethereum held above $2,000 despite falling 1.6% to about $2,055, XRP traded near $1.06, and BNB was around $680. The Altcoin Season Index slipped to 43, Bitcoin dominance rose to 60.5%, and the Crypto Fear and Greed Index remained at 26.
