Why Is Bitcoin Dropping? $1B Liquidations & ETF Outflows

Why is Bitcoin dropping today: ETF outflows, $1 billion in liquidations and CPI fears

Bitcoin is struggling to recover after falling below $75,000 over the weekend. The price dropped to around $73,700 on Sunday, its lowest level in nearly two months, before moving back towards $74,500 on Monday morning.

The decline comes after Bitcoin recently traded above $80,900. Ethereum has also taken a bigger hit, falling around 5% to approximately $2,100.

So, what is behind the latest crypto market sell-off?

There isn’t one clear reason. Investors are dealing with heavy withdrawals from US spot Bitcoin ETFs, more than $1 billion in crypto liquidations, and growing uncertainty ahead of the latest US inflation report.

Several other developments, including concerns around interest rates and the broader stock market, are adding to the pressure.

Here’s a closer look at what’s happening and what Bitcoin traders should watch next.

1. Heavy Bitcoin ETF Outflows Add Selling Pressure

One of the biggest concerns for the market is the amount of money leaving US spot Bitcoin ETFs.

According to Farside Investors data, these funds recorded approximately $1.28 billion in net outflows between November 2 and November 6.

BlackRock’s iShares Bitcoin Trust (IBIT) accounted for roughly $1.21 billion of those withdrawals.

The selling became particularly noticeable towards the end of the week. Around $430.2 million flowed out of Bitcoin ETFs on Thursday, followed by another $411.9 million on Friday. IBIT alone recorded approximately $403 million in outflows on Friday.

Wednesday was the only positive trading day during that period, with around $74.6 million in net inflows.

Why does this matter?

Bitcoin ETFs give traditional investors a way to gain exposure to Bitcoin without directly holding the cryptocurrency. When large amounts of money leave these funds, it can signal weakening institutional demand.

ETF outflows don’t automatically mean Bitcoin will continue falling. However, several days of heavy withdrawals make it harder for the market to find buying support, particularly when sentiment is already weak.

2. More Than $1 Billion in Crypto Liquidations

The decline became more painful for traders using borrowed money.

Data from CoinGlass shows that more than $1 billion worth of crypto positions were liquidated over a 24-hour period. Long positions accounted for approximately $931 million of the total.

Ethereum recorded the largest share of liquidations at around $455 million, while Bitcoin accounted for approximately $278 million.

The biggest individual liquidation involved an Ethereum position worth roughly $48 million.

These numbers help explain why prices fell so quickly.

When traders open leveraged long positions, they are betting that prices will rise using borrowed funds. If the market moves in the opposite direction, exchanges can automatically close their positions once the required margin is no longer available.

That process creates additional selling pressure.

As prices fall, more leveraged positions get liquidated, pushing prices down further. This can turn an ordinary market correction into a much sharper sell-off.

We’ve seen a similar pattern recently, with more than $1 billion in crypto derivatives liquidated as Bitcoin slipped.

3. US Inflation Report Puts Investors on Edge

Another reason traders are being cautious is the upcoming US inflation report.

The October Consumer Price Index (CPI) data is scheduled for release on Tuesday, November 10, at 8:30 a.m. ET (7:00 p.m. IST).

Inflation figures are important because they can influence the Federal Reserve’s decisions on interest rates.

The latest employment figures have added to market uncertainty. The US economy reportedly added 165,000 jobs, compared with expectations of around 65,000, while unemployment stood at 4.1%.

Stronger employment can give the Federal Reserve more room to keep interest rates higher if inflation remains a concern.

According to CryptoTicker, futures markets are pricing in a 76.8% probability of a Federal Reserve rate hike on December 9.

For Bitcoin, the concern is straightforward. Higher interest rates can make riskier investments less attractive, potentially reducing demand for cryptocurrencies and technology stocks.

If Tuesday’s inflation figures come in higher than expected, Bitcoin could face another round of selling pressure. A softer reading, on the other hand, could give investors some relief.

For now, traders are waiting for the data before making bigger moves.

4. Stock Market Weakness and Geopolitical Concerns

Bitcoin’s recent decline has also happened alongside weakness in US technology and AI-related stocks.

When investors become less comfortable taking risks in traditional markets, cryptocurrencies can face similar selling pressure.

Concerns surrounding Nvidia and stalled US-Iran negotiations have also appeared in reports discussing the recent market decline. We covered that earlier move in Bitcoin swings after the Nvidia scandal and failed Iran talks.

However, it is difficult to determine exactly how much these developments contributed to Bitcoin’s fall.

The relationship between crypto and traditional financial markets is not always consistent, but broader market uncertainty can certainly influence investor sentiment.

5. MEXC Restrictions and Delayed Crypto Legislation

There are also regulatory developments adding to uncertainty across the crypto industry.

On November 6, the Financial Crimes Enforcement Network (FinCEN) issued an order restricting US financial institutions from processing certain transfers involving cryptocurrency exchange MEXC.

MEXC has responded by saying its operations remain normal and that it has begun an independent compliance review.

Meanwhile, the US crypto market is still waiting for progress on broader market-structure legislation.

The CLARITY Act remains stalled following the midterm elections, leaving investors uncertain about when clearer rules for the industry might arrive.

Neither development alone explains Bitcoin’s latest decline, but both add to the cautious mood surrounding the market.

Bitcoin Price Prediction: Key Levels to Watch

With Bitcoin trading around $74,500, the next few trading sessions could be important.

Traders are paying close attention to the $73,700-$74,000 area, which includes Sunday’s low and sits close to the 20-week moving average near $73,779.

Here are the main price levels currently on traders’ radar:

Support levels

$73,700-$74,000: The immediate support zone. Bitcoin needs to hold this area to avoid further weakness.
$71,252: A lower level to watch if selling pressure continues.
$67,868: Another potential downside area.

Resistance levels

$75,000: The first level Bitcoin needs to reclaim.
$75,600: The next resistance area.
$76,000: An important level close to the short-term holder cost basis.
$78,186: The approximate 50-week moving average.

Technical indicators are also showing a weaker market.

Analyst Ali Martinez has pointed out that Bitcoin managed to hold its 200-day moving average during the decline. Some traders see this as an encouraging sign, although it does not guarantee a recovery.

The daily Relative Strength Index (RSI) is around 35, getting closer to the commonly watched oversold level of 30.

Meanwhile, the Crypto Fear and Greed Index is at 29, indicating fear among market participants.

These indicators suggest that confidence is low, but they don’t tell us exactly when Bitcoin will turn higher.

Is Bitcoin Entering a Crash?

Despite the recent selling, calling this a Bitcoin crash would be premature.

Bitcoin has fallen roughly 8% from its recent high of around $80,900. Corrections of this size are not unusual in the cryptocurrency market.

What makes this decline more concerning is the combination of ETF withdrawals, heavy leveraged liquidations and uncertainty surrounding US monetary policy.

Ethereum’s larger decline has also added to the negative sentiment across the wider crypto market.

The next few days could provide a clearer picture of whether this is simply a temporary correction or the beginning of a deeper pullback.

What Should Bitcoin Investors Watch Next?

There are several important dates and market signals to keep an eye on:

November 10: US October CPI inflation report. Investors will be watching whether inflation is cooling or remaining stubbornly high.
Daily ETF flows: A return to positive Bitcoin ETF inflows could indicate that institutional demand is recovering.
Bitcoin at $73,700: Watch whether BTC can hold this level on a daily closing basis.
November 18: Federal Reserve meeting minutes from the October meeting.
December 9: The next Federal Reserve interest rate decision.

For traders, the current market conditions are a reminder of how quickly leveraged positions can turn against them. Keeping leverage under control and avoiding rushed decisions may help limit unnecessary risk.

Investors who are looking beyond short-term price movements can also explore our regularly updated list of the best active crypto airdrops in November 2026.

The bottom line: Bitcoin is falling because several sources of selling pressure have arrived at the same time. ETF outflows are weakening demand, liquidations are accelerating the decline, and uncertainty over US inflation and interest rates is keeping investors cautious. Whether Bitcoin can recover will depend partly on how these factors develop over the coming days.

Disclaimer: This article is for informational and educational purposes only. It is not financial or investment advice. Cryptocurrency markets are highly volatile, and readers should do their own research before making investment decisions.

Sources and market data:

Market figures reflect the information available on November 9, 2026, and may have changed since publication.