Why Is Crypto Falling? Bitcoin Breaks Below $69,000 as Selling Pressure Grows

Bitcoin has slipped below $69,000, triggering another wave of selling across the cryptocurrency market. Ethereum has also dropped under $2,000, while several prominent altcoins have recorded declines of more than 6%.

The latest downturn reflects a combination of weakening dollar liquidity, institutional capital withdrawals, and mounting pressure from leveraged traders. Investors are pulling funds out of stablecoins and Bitcoin ETFs, reducing the amount of fresh capital available to support cryptocurrency prices. Bitcoin’s move below $70,000 has further intensified the situation, forcing heavily leveraged bullish traders to close their positions.

Crypto Liquidity Dries Up as Stablecoin Supply Falls

The stablecoin market is showing growing signs of stress as billions of dollars in liquidity leave the cryptocurrency ecosystem. Glassnode data indicates that the combined supply of major stablecoins has declined by $14.2 billion over the past 30 days. This is the largest monthly contraction since the 2022 bear market, when the Terra collapse triggered a major exodus of capital from digital assets.

Stablecoin supply has now fallen below $280 billion, returning to levels last observed around September 2025. CryptoQuant has also reported that USDT’s market capitalization dropped by $6.6 billion during the 60-day period ending November 7. The reduction was more than twice the contraction seen following the FTX collapse in December 2022.

Stablecoins, including USDT and USDC, play an important role in maintaining liquidity throughout crypto markets. Traders use these dollar-pegged assets to transfer capital between exchanges, purchase cryptocurrencies, and manage trading positions. However, when investors redeem stablecoins for traditional currency, the funds leave the crypto ecosystem, reducing available buying power.

Glassnode has warned that continued declines in stablecoin supply could limit the liquidity needed to sustain cryptocurrency rallies.

Institutional investment flows are adding to these concerns. U.S. spot Bitcoin ETFs have recorded cumulative net withdrawals of $1.6 billion across 20 trading sessions. On November 12, the funds experienced another $47.7 million in outflows, marking their sixth consecutive day of withdrawals.

Bitwise’s BITB recorded the largest daily outflow at $26.4 million, while Morgan Stanley’s MSBT attracted $3.3 million in fresh capital. Ethereum ETFs also registered at least $8 million in net outflows in data reported for November 12.

The combination of declining stablecoin reserves and persistent ETF withdrawals suggests that liquidity conditions are deteriorating. With institutional demand weakening and fewer stablecoin dollars available for purchases, the market has become more vulnerable to sudden selling pressure.

Crypto Liquidations Surge to $1.64 Billion as Bitcoin Falls

The decline in cryptocurrency prices has also triggered significant losses across derivatives markets. Bitcoin dropped around 7% within 24 hours, briefly reaching $68,400 during a sharp 15-minute sell-off this morning. Ethereum lost 6% to trade at $1,920, while BNB declined 6.3% and XRP fell 3.5%.

According to liquidation data, approximately $1.64 billion in leveraged crypto positions were wiped out over 24 hours. Long positions accounted for $1.46 billion of the total, affecting more than 175,000 traders.

Bitcoin’s fall below the psychological $70,000 threshold accelerated the liquidation wave. As prices approached predetermined liquidation levels, exchanges automatically closed leveraged bullish positions, creating additional selling pressure.

This process can quickly become self-reinforcing. Falling prices trigger forced liquidations, those liquidations generate additional sell orders, and the resulting decline pushes more leveraged positions toward closure.

Macroeconomic uncertainty is providing another challenge for digital assets. Stronger-than-expected U.S. inflation data has increased expectations of another Federal Reserve rate hike in December. Meanwhile, a strengthening dollar and rising Treasury yields are putting additional pressure on risk-sensitive investments.

Concerns surrounding Nvidia’s leadership have also unsettled technology stocks, contributing to a wider risk-off sentiment across financial markets.

Overall, the cryptocurrency market is dealing with a combination of shrinking stablecoin liquidity, persistent institutional withdrawals, and widespread leveraged liquidations. These factors are weakening buying demand while accelerating forced selling, helping explain why Bitcoin and major altcoins are experiencing another sharp market-wide decline.