Bitcoin plunged to a 12-week low on November 13, falling under $69,000 as renewed concerns over U.S. inflation and the potential for upcoming Federal Reserve rate hikes pressured the market.
Bitcoin plunged to a 12-week low on November 13, falling under $69,000 as renewed concerns over U.S. inflation and the potential for upcoming Federal Reserve rate hikes pressured the market. The sharp decline marked a reversal of much of Bitcoin’s earlier summer gains, with outflows from spot Bitcoin ETFs and a surge in liquidations accelerating the downturn.
The market downturn accelerated across November 12 and 13. Bitcoin dropped to $71,200 on November 12, its lowest since late August. By 12:10 a.m. ET on November 13, the price had slipped to $68,408, down 7% in 24 hours. This marked its lowest point since August 20, erasing a rally that lifted the asset above $80,000 in late August for the first time since mid-May.
Bitcoin traded at $68,780 by 18:13 UTC on November 13, reflecting a 4.34% decline over 24 hours and a 9.27% loss over the previous seven days. Ethereum and Solana also posted notable declines during this period, pointing to widespread weakness across major cryptocurrencies.
Asset Price 24-hour change 7-day change Bitcoin (BTC) $68,780 -4.34% -9.27% Ethereum (ETH) $1,936.59 -3.99% -13.25% Solana (SOL) $79.96 -2.07% -11.77%Market sentiment indicators reflected the deteriorating mood. The Crypto Fear & Greed Index registered a reading of 20, categorized as Extreme Fear.
The decline coincided with substantial outflows from U.S. spot Bitcoin ETFs. Over the week before November 11, net outflows reached $1.28 billion, with an additional $296 million withdrawn over Monday and Tuesday.
ETF outflows surged to $1.28 billion for the recent week, followed by $296 million more exiting on the next two days, underscoring mounting investor caution amid turbulent market conditions.
Simultaneously, a wave of liquidations swept through the crypto market. Over the 24-hour stretch leading to November 13, crypto markets saw $1.47 billion in leveraged position liquidations, with $1.31 billion coming from long positions. On November 12 alone, more than $750 million in positions were liquidated, predominantly affecting bullish bets.
Rick Maeda, a market analyst, indicated that “thin bids after the CPI report triggered a cascade of liquidations,” signaling limited buyer presence once prices began to tumble.
The downturn followed fresh inflation data and statements from policymakers. The U.S. Bureau of Labor Statistics reported a 0.4% rise in headline consumer prices for October after a 0.6% jump in September. Core CPI, which excludes food and energy, also increased 0.3% in October.
Federal Reserve Governor Christopher Waller expressed support for a 25-basis-point rate increase at the upcoming December meeting and suggested a larger move if inflation proved higher than expected. Waller emphasized that his comments reflected his views alone, not an official decision by the Board or Federal Open Market Committee.
Remarks from Fed Governor Waller increased market expectation of a December rate hike but did not represent an established policy decision.
The Federal Reserve most recently held its policy rate steady at 3.75% to 4.00% at the end of October. No rate change for December has been finalized.
Market reaction to Federal Reserve policy projections, ongoing inflation, and external headlines contributed to risk aversion and added volatility across digital assets.
Mini dictionary: Federal Reserve (Fed) — The central bank of the United States, responsible for setting monetary policy and regulating financial institutions. The Fed’s interest rate decisions significantly influence financial markets, including cryptocurrencies such as Bitcoin, by affecting borrowing costs and risk appetite.
Attention now turns to the December Federal Reserve meeting, which could determine the direction of policy rates and potentially influence risk sentiment in cryptocurrency markets. Persistent ETF outflows and the latest liquidation surge will remain important data points to track in the coming weeks.
While inflation and the outlook for U.S. monetary policy are in focus, recent events show that a combination of macroeconomic and market structure factors can trigger sharp price moves in digital assets. Market watchers continue to monitor the interplay between ETF fund flows, interest rates, and shifts in investor appetite.
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