On Friday, $BTC fell below $70,000, extending its recent decline as investor sentiment worsened amid institutional outflows, shrinking liquidity, and broader macroeconomic pressures.
The decline coincided with a sharp deterioration in market sentiment. On Friday, the crypto market Fear and Greed Index fell to 20 points—its lowest reading in more than four months, corresponding to the “extreme fear” zone. The last time the index reached this level was July 8.
Vikram Subburaj, CEO of cryptocurrency exchange Giottus, attributed the weakness in $BTC to institutional investor outflows, shrinking liquidity in the crypto market, and expectations that the Federal Reserve will raise interest rates in December.
“Investors should avoid trying to profit from short-term dips or using excessive leverage,” he said.
In a Friday report, 10x Research highlighted the divergence between $BTC and U.S. stocks. From November 5 to 12, Bitcoin fell 5.9%, while the Nasdaq 100 rose 6.4%, indicating that the cryptocurrency reacted more strongly to rising Treasury yields and a stronger U.S. dollar than to the performance of tech stocks.
The research firm said Bitcoin increasingly traded in sync with gold, which fell 5.5% over the same period, while the yield on 10-year U.S. Treasuries climbed above 5%.
Meanwhile, institutional trading platform Talos also warned that low liquidity and high leverage could amplify market volatility. According to its weekly report, on November 9, Bitcoin order book depth on major exchanges fell to $72 million—about 33% below normal levels.
“Liquidity remains low and leverage high, leaving the market vulnerable to sharp moves in either direction,” said Tanay Ved, a senior research analyst at Talos. “A recovery in order book depth and a reversal in capital flows would create a stronger foundation for a recovery.”
The sell-off followed continued outflows from U.S. spot Bitcoin exchange-traded funds (ETFs). BlackRock’s iShares Bitcoin Trust (IBIT) recorded net outflows of more than $2 billion over nine consecutive trading sessions through Wednesday, while total outflows from the broader group of funds reached nearly $1.44 billion over five sessions.
Preliminary data from Farside Investors showed another $47.7 million in net outflows on Thursday, although data for BlackRock and Fidelity were not yet available.