Bitcoin has dropped below $67,000 after losing the $75,500 level and hitting a low of $66,456. The asset is down nearly 12% for the week, and the decline has triggered $663.83 million in liquidations, including $533.56 million from long traders.
In its weekly report, Coinbase Institutional said the recent drop had more to do with changing Federal Reserve rate expectations than the Binance hack, pointing to macroeconomic pressure as the bigger issue for Bitcoin.
Rate expectations shift
October CPI rose 0.4% month over month and core CPI rose 0.3%, both 0.1 percentage point above expectations. Traders now expect a 25-basis-point Fed rate hike in December. Fed Governor Christopher Waller said he would support a 25-basis-point hike, taking rates to 4%-4.25%, and warned that a core inflation reading above 0.3% could prompt consideration of a 50-basis-point hike.
Markets are pricing in around 64 basis points of Fed rate hikes over the next 12 months, up from 37 basis points earlier in November. Higher rates can make a non-yielding asset less attractive, while a stronger dollar adds pressure. The dollar index has climbed to 103.4, its highest level since April 2025.
Selling pressure beyond rates
Coinbase Institutional also flagged an $11.5 billion drop in stablecoin supply over the past 30 days, which it said was the largest decline it has recorded.
Bitcoin spot ETFs have seen heavy withdrawals. Since October 30, outflows have reached a record $3 billion, with November 4 the only day in that period to record an inflow, at $74.6 million.
MSCI confirmed that Strategy will be removed from its global indexes after November 30. The report said this could force funds tracking those indexes to sell around $2.8 billion worth of Strategy shares.
Levels to watch
With Bitcoin trading below $67,000, Coinbase Institutional sees $62,000 as the next major level if the $66,000-$68,000 range fails to hold. It said a move above $73,000 could improve the chances of Bitcoin returning to $80,000.
Bitcoin critic Peter Schiff also warned that the decline could worsen, saying selling may pick up if Bitcoin falls below $50,000 and potentially send it toward its 2022 low of under $16,500. He added that he would not be surprised to see a retest of that level before year-end.
