The cryptocurrency market is trading lower today, with Bitcoin slipping below the $75,000 support level and most altcoins following suit. Among the hardest hit in the last 24 hours are Pi Network, Aster, LayerZero, and Stacks. The downturn reflects a combination of persistent ETF outflows, a spike in liquidations, and shifting expectations for Federal Reserve policy.
ETF Outflows Accelerate
Spot Bitcoin ETFs recorded $411 million in outflows on Friday, following $430 million the previous day. This brings November's total outflows to $1.28 billion, more than double the $515 million seen in October. Ethereum spot ETFs have lost over $365 million this month, after shedding $1.6 billion in October. Solana funds have also seen outflows of over $26 million in November, following $143 million in October.
The outflow trend has intensified following the U.S. midterm elections, where Democrats secured a large majority. The party is projected to control 56 Senate seats and over 250 House seats. This outcome raises the likelihood of increased regulatory scrutiny on the crypto industry. Senator Elizabeth Warren, a vocal critic of digital assets, is set to lead the Senate Banking Committee. Additionally, the probability of the CLARITY Act passing—which would shift most crypto regulation from the SEC to the CFTC—has diminished.
Liquidations Surge, Fear Gauge Drops
Market-wide liquidations have jumped dramatically, with CoinGlass data showing a 1,947% increase in the past 24 hours, totaling over $1.14 billion. Bitcoin positions worth $305 million were liquidated, Ethereum saw $497 million in liquidations, and Solana had $41 million. Such forced selling adds to downward pressure. Futures open interest has also declined by 2.75% to $127.8 billion.
The Crypto Fear and Greed Index has fallen from the greed zone of 81 in September to the fear zone of 27, a level historically associated with further downside. The index's shift reflects deteriorating sentiment among traders.
Fed Rate Hike Odds Rise
Adding to the bearish backdrop, the odds of a Federal Reserve interest rate hike have climbed to nearly 80%, according to the CME Fed Futures tool. This follows stronger-than-expected jobs data on Friday, which showed 165,000 new jobs created and the unemployment rate dropping to 4.1%. With inflation still above the Fed's 2% target, the central bank may be inclined to tighten policy, which typically weighs on risk assets like cryptocurrencies.
The combination of these factors—ETF outflows, elevated liquidations, and rising rate-hike expectations—has created a challenging environment for digital assets. Investors are closely monitoring whether Bitcoin can hold above key support levels or if further declines are in store.
This article is for informational purposes only and does not constitute financial advice.
