- Bitcoin fell to $71,300 as US Treasury yields climbed and inflation concerns kept pressure on risk assets.
- US spot Bitcoin ETFs recorded approximately $299.8 million in net outflows, extending the losing streak to five consecutive sessions.
- Crypto liquidations exceeded $479 million across Bitcoin, Ethereum, Solana, XRP and Dogecoin, with long positions accounting for most of the forced closures.
Bitcoin Slides as Treasury Yields Rise
Bitcoin continued its decline to $71,300 after US stock markets opened, even as losses on the Nasdaq were limited to approximately 0.35% during the first half hour of trading. Shares of Broadcom and AMD rose by around 3% over the same period, highlighting the continued divergence between selected technology stocks and the broader cryptocurrency market.
Higher US Treasury yields added to pressure on crypto assets. Cleveland Fed President Beth Hammack said inflationary pressures were spreading more widely and that monetary policy needed to be tightened. At the time of her remarks, the two-year US Treasury yield, which is particularly sensitive to expectations for Federal Reserve policy, had risen 7.2 basis points to 4.80%.
Inflation Data Keeps Fed Tightening Debate Alive
US inflation data released on Tuesday reinforced uncertainty over the direction of interest rates. Consumer prices increased 0.4% month over month in October, exceeding the 0.3% rise expected by economists. Core inflation, which excludes food and energy prices, advanced 0.3% for the third consecutive month.
Federal Reserve member Christopher Waller also said in a speech this week that additional monetary tightening was necessary to return inflation to the central bank’s 2% target. Expectations for higher or longer-lasting interest rates can weigh on Bitcoin and other risk-sensitive assets by supporting bond yields and reducing demand for speculative investments.
Bitcoin ETFs Record Fifth Straight Session of Outflows
Bitcoin was also affected by weak demand for spot exchange-traded funds. Data from Farside Investors showed that US spot Bitcoin ETFs recorded $299.8 million in net outflows in the latest completed session. It was the fifth consecutive session of net outflows, taking total withdrawals from the funds during that period to approximately $1.44 billion.
BlackRock’s IBIT recorded the largest outflow at $269.7 million. Grayscale’s GBTC experienced a $39.1 million withdrawal, while Morgan Stanley’s MSBT recorded a $9 million inflow. Spot Ethereum ETFs also posted a net outflow of $144.8 million during the same session. Combined net outflows from the Bitcoin and Ethereum ETF groups reached $444.6 million.
Bitcoin Long Positions Lead Crypto Liquidations
Leverage-related losses intensified the market decline. CoinGlass data for the past 24 hours showed total liquidations of $305.23 million in Bitcoin positions and $126.35 million in Ethereum positions. Long positions accounted for $266.45 million of the Bitcoin liquidations and $104.74 million of the Ethereum liquidations.
Solana liquidations totaled $23.63 million, while XRP liquidations reached $12.78 million and Dogecoin liquidations were approximately $11.17 million. Across Bitcoin, Ethereum, Solana, XRP and Dogecoin, liquidations exceeded $479 million, with approximately $414 million coming from long positions. When prices fall, the forced closure of leveraged long positions can add to selling pressure and accelerate market losses.
Why This Matters
The combination of rising Treasury yields, persistent inflation and continued outflows from US spot Bitcoin ETFs creates a challenging environment for Bitcoin. ETF withdrawals indicate weaker institutional demand during the latest five-session period, while leveraged liquidations show how declining prices can amplify losses across major cryptocurrencies. The next market moves will remain closely tied to expectations for Federal Reserve policy, Treasury yields, ETF flows and further inflation developments.
Frequently Asked Questions
Why did Bitcoin fall to $71,300?
Bitcoin declined amid rising US Treasury yields, renewed expectations for tighter Federal Reserve policy, weak spot Bitcoin ETF demand and extensive liquidations of leveraged long positions.
How much money left US spot Bitcoin ETFs?
US spot Bitcoin ETFs recorded approximately $299.8 million in net outflows in the latest completed session. It was the fifth consecutive session of net outflows, bringing withdrawals over that period to about $1.44 billion.
How large were the crypto liquidations?
Liquidations across Bitcoin, Ethereum, Solana, XRP and Dogecoin exceeded $479 million over the past 24 hours. Approximately $414 million of that total came from long positions.
This is not investment advice.
