Inflation came in hotter than expected, while Treasury yields and the dollar strengthened together. BTC fell below $70,000 for the first time since mid-August, hitting a low of $67,555, and ETH dropped below $2,000. A QCP Capital report also noted that more than $1.3 billion in crypto futures positions were liquidated over the past 24 hours, including about $677 million in BTC positions. From November 5 to 11, US spot BTC ETFs recorded cumulative net outflows of about $1.438 billion.
Another source of pressure came from MSCI: according to its announcement schedule, Strategy (MSTR) will be removed after the market close on November 30. Sell-side analysts estimate this could trigger about $2.8 billion in passive stock selling. On the macro front, markets have fully priced in a Federal Reserve rate hike in December, with the probability of a 50-basis-point hike at about 13%. QCP believes attention should turn to whether US PPI will further fuel expectations of a large rate hike.
Scenario 1 to watch: If daily ETF outflows ease and the $70,000 level is quickly reclaimed, selling pressure may temporarily subside. Scenario 2: If ETF outflows persist and concerns over passive selling related to Strategy intensify, any rebound may remain constrained. Are you more focused on reclaiming the $70,000 level, or on whether ETF outflows are easing?
Source: Wu Shuo
Image 1: QCP: Macro pressure and ETF outflows weigh on BTC, which falls below $70,000 · Screenshot of source page
Image source: https://www.wublock123.com/news/qcp-crypto-market-selling-pressure-btc-etf-outflows-strategy-index-removal-71907
Another source of pressure came from MSCI: according to its announcement schedule, Strategy (MSTR) will be removed after the market close on November 30. Sell-side analysts estimate this could trigger about $2.8 billion in passive stock selling. On the macro front, markets have fully priced in a Federal Reserve rate hike in December, with the probability of a 50-basis-point hike at about 13%. QCP believes attention should turn to whether US PPI will further fuel expectations of a large rate hike.
Scenario 1 to watch: If daily ETF outflows ease and the $70,000 level is quickly reclaimed, selling pressure may temporarily subside. Scenario 2: If ETF outflows persist and concerns over passive selling related to Strategy intensify, any rebound may remain constrained. Are you more focused on reclaiming the $70,000 level, or on whether ETF outflows are easing?
Source: Wu Shuo
Image 1: QCP: Macro pressure and ETF outflows weigh on BTC, which falls below $70,000 · Screenshot of source page
Image source: https://www.wublock123.com/news/qcp-crypto-market-selling-pressure-btc-etf-outflows-strategy-index-removal-71907
