Why is crypto down on November 13? A $14.2 billion contraction in stablecoin supply, continued withdrawals from U.S. spot Bitcoin ETFs and forced selling in derivatives markets are converging
Why is crypto down on November 13? A $14.2 billion contraction in stablecoin supply, continued withdrawals from U.S. spot Bitcoin ETFs and forced selling in derivatives markets are converging as prices slide. Bitcoin fell below $69,000 in CryptoNews’ morning update, while Ether briefly dropped below $2,000.
The selloff is happening against a weaker market backdrop, not in isolation. But the latest price moves are snapshots: later market data showed partial recovery from the morning lows, while major cryptocurrencies remained lower over 24 hours.
CryptoNews reported that Bitcoin broke below $70,000 during the morning selloff, reaching $68,400 in a sharp 15-minute move. Ether was reported at $1,920, while BNB fell 6.3% and XRP 3.5% in the same update. The outlet attributed the decline to shrinking dollar liquidity, institutional withdrawals and leveraged selling.
Those figures reflect CryptoNews’ live report, published at 07:32 UTC. By 11:13 UTC, CoinGecko market data showed Bitcoin at $69,242 and Ether at $1,950.60. Both prices were above the levels cited in CryptoNews’ morning update, but remained substantially down over 24 hours.
CryptoNews also reported $1.64 billion in liquidations over 24 hours, with long positions accounting for $1.46 billion and more than 175,000 traders liquidated. These figures are the outlet’s reported snapshot; they do not by themselves establish what started the decline.
Stablecoins such as USDT and USDC are commonly used to hold dollar-linked value and move funds between crypto assets and exchanges. When supply contracts because holders redeem stablecoins for dollars, less capital remains available inside crypto markets. That doesn’t mean every redemption turns directly into a Bitcoin sale, but a smaller pool of on-chain dollars can leave markets less able to absorb selling.
In its November 11 report, Glassnode said stablecoin supply declined by $14.2 billion over the prior 30 days, the fastest drop since June 2022. CryptoNews reported total stablecoin supply had slipped below $280 billion and cited a $6.6 billion fall in USDT’s market capitalization over 60 days through November 7.
ETF flows are another pressure point. Glassnode counted $1.6 billion in net outflows from U.S. spot Bitcoin ETFs over 20 trading sessions. CryptoNews reported that those funds had another $47.7 million in net outflows on November 12, extending the withdrawal streak to six sessions. That same report cited at least $8 million in net outflows from Ether ETFs on November 12.
There are signs of broader risk aversion, too. Binance Research reported that total crypto market capitalization fell 9.1% in October to $2.70 trillion. It pointed to hotter inflation, higher expectations of a December Federal Reserve rate hike and weakness in technology stocks tied to AI spending and debt concerns.
Stablecoins can serve as dollar-linked liquidity within crypto markets.
The fall spread across large-cap assets, although the size of losses varied. CoinGecko’s November 13 data below is timestamped 11:13 UTC. The percentage changes cover the prior 24 hours.
Asset Price 24-hour change Bitcoin (BTC) $69,242 -5.59% Ethereum (ETH) $1,950.60 -4.46% BNB $638.75 -4.69% XRP $1.018 -2.82% Solana (SOL) $80.37 -3.06%Losses also extend beyond the morning. At that same timestamp, Bitcoin was down 8.89% over seven days and 16.66% over 30 days. Ether was down 12.76% over seven days and 21.81% over 30 days. The Crypto Fear & Greed Index registered 20, classified as “Extreme Fear,” on November 13.
Glassnode’s November 11 analysis described weakening U.S. spot demand, noting that its 30-day average Coinbase Bitcoin premium had remained negative, with the discount at its deepest since February. It also said Bitcoin had dropped below the $75,600 cost basis for short-term holders, and that about 35% of those holders’ coins were in profit at the time.
That picture isn’t entirely one-way. Glassnode observed that wallets holding 100-1,000 BTC and 1,000-10,000 BTC had begun accumulating during the week covered by its report, even as other wallet-size groups reduced holdings. The data doesn’t establish that prices have found a floor.
Crypto assets recorded broad losses in the November 13 market snapshot.
For anyone asking why is crypto down, the next useful signals are whether stablecoin supply continues to contract, whether ETF outflows persist and whether spot demand improves. Those indicators may help show if the market is still losing liquidity or if the current pressure is easing. They don’t predict when prices will turn.
Also watch whether Bitcoin remains below $70,000 and whether liquidations remain elevated. CryptoNews reported another wave of forced liquidations after Bitcoin broke below that level, but the evidence available on November 13 does not establish what may happen next or the cause or duration of the downturn.
Stablecoin supply, ETF flows and liquidations are among the indicators to monitor.
Crypto is falling amid a contraction in stablecoin supply, withdrawals from U.S. spot Bitcoin ETFs and leveraged liquidations, according to Glassnode and CryptoNews. These factors can compound selling, but no single indicator explains every price move.
Glassnode reported on November 11 that stablecoin supply fell by $14.2 billion over the prior 30 days, the fastest contraction since June 2022.
Glassnode reported $1.6 billion in net outflows across 20 trading sessions. CryptoNews said U.S. spot Bitcoin ETFs recorded $47.7 million in net outflows on November 12. Flows can change from session to session.
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrencies are highly volatile; always do your own research before investing.
Read More:Why Is Crypto Down? Stablecoin Drain Deepens Selloff">Why Is Crypto Down? Stablecoin Drain Deepens Selloff
