Key Highlights
- Bitcoin fell 5.9% between Nov. 5 and Nov. 12 while the Nasdaq 100 gained 6.4%.
- Bitcoin order-book depth across major exchanges dropped to $72 million on Nov. 9, about 33% below normal levels.
- US spot Bitcoin ETFs recorded billions of dollars in net outflows during multiple consecutive trading sessions.
Bitcoin Weakness Deepens as Liquidity Tightens
Bitcoin’s recent decline has been driven by institutional outflows, tighter crypto-market liquidity and expectations of a December Federal Reserve interest rate hike, according to Vikram Subburaj, CEO of crypto exchange Giottus. “Investors should avoid chasing short-term dips or using excessive leverage,” he said.
The cryptocurrency has also diverged sharply from US equities. In a Friday report, 10x Research said Bitcoin dropped 5.9% between Nov. 5 and Nov. 12, while the Nasdaq 100 rose 6.4%. The divergence suggests Bitcoin was responding more closely to rising Treasury yields and a stronger US dollar than to movements in technology stocks.
Bitcoin Trades More Like Gold as Treasury Yields Rise
10x Research said Bitcoin was increasingly trading alongside gold, which declined 5.5% over the same period. The move came as the yield on the 10-year US Treasury climbed above 5%, adding pressure to risk-sensitive assets and tightening broader financial conditions.
Institutional trading platform Talos separately warned that thin liquidity and elevated leverage could intensify Bitcoin’s price swings. Its weekly report found that Bitcoin order-book depth across major exchanges fell to $72 million on Nov. 9, roughly 33% below normal levels.
“Liquidity remains thin while leverage stays elevated, leaving the market vulnerable to sharp moves in either direction,” said Tanay Ved, senior research associate at Talos. “A rebuild in order-book depth and a turn in capital flows would provide a firmer foundation for recovery.”
US Spot Bitcoin ETFs See Sustained Outflows
The sell-off follows persistent withdrawals from US spot Bitcoin exchange-traded funds. BlackRock’s iShares Bitcoin Trust (IBIT) recorded more than $2 billion in net outflows across nine consecutive trading sessions through Wednesday. The broader group of funds lost nearly $1.44 billion over five sessions.
Preliminary data from Farside Investors showed an additional $47.7 million in net outflows on Thursday. The figures for BlackRock and Fidelity were still pending, meaning the reported total could change once those numbers are available.
Why This Matters
Bitcoin’s decline is occurring alongside weaker institutional fund flows, reduced exchange liquidity and elevated leverage. The combination can make price movements more pronounced because fewer orders are available to absorb buying or selling pressure. The market’s near-term direction will depend in part on whether order-book depth improves and capital flows turn positive, while investors continue to assess Treasury yields, the US dollar and Federal Reserve policy expectations.
Frequently Asked Questions
Why is Bitcoin falling?
Vikram Subburaj attributed Bitcoin’s weakness to institutional outflows, tightening crypto liquidity and expectations of a December Federal Reserve interest rate hike. 10x Research also pointed to rising Treasury yields and a stronger US dollar.
How much did Bitcoin fall compared with the Nasdaq 100?
Between Nov. 5 and Nov. 12, Bitcoin declined 5.9%, while the Nasdaq 100 gained 6.4%.
What happened to Bitcoin ETF flows?
BlackRock’s iShares Bitcoin Trust recorded more than $2 billion in net outflows across nine consecutive trading sessions through Wednesday. Broader US spot Bitcoin ETFs shed nearly $1.44 billion over five sessions, followed by preliminary net outflows of $47.7 million on Thursday.
