Bitcoin falls 2% to $72,300 as ETF outflows, hawkish Fed bets weigh on sentiment
Bitcoin declined nearly 2% to $72,365 amid sustained US spot ETF outflows, inflation concerns and expectations of tighter Federal Reserve policy. Extreme market fear, weakening technical indicators and quantum computing risks further pressured cry...
By Kumar Gaurav, ETMarkets.com |
Reuters
Bitcoin faces mounting selling pressure as ETF withdrawals, US inflation concerns and potential Fed rate hikes deepen market uncertainty and weaken investor confidence.
The world's largest cryptocurrency Bitcoin extended its losses on Thursday, slipping nearly 2% to $72,365 as sustained outflows from US spot Bitcoin exchange-traded funds (ETFs) and growing expectations of tighter US monetary policy weighed on investor sentiment.
The decline comes amid mounting institutional selling pressure and concerns over the Federal Reserve's interest rate outlook, with investors turning increasingly cautious towards risk-sensitive assets.
Bitcoin's market capitalisation stood at around $1.5 trillion while its 24-hour trading volume was recorded at $24.2 billion, according to data from Binance.
The cryptocurrency had a circulating supply of 20.1 million coins, accounting for 95.77% of its maximum supply of 21 million. Bitcoin's all-time high stands at $126,198.07, recorded on October 7, 2025. Meanwhile, the Binance Fear & Greed Index stood at 24, signalling extreme fear among market participants.
Institutional selling has emerged as another source of pressure on the cryptocurrency. US spot Bitcoin ETFs recorded five consecutive sessions of net outflows, taking cumulative withdrawals to around $1.5 billion. This included net outflows of $299.8 million on November 11, adding to the selling pressure in the market.
Macroeconomic developments have also contributed to the cautious sentiment. Stronger-than-expected US inflation data for October, which showed a 0.4% month-on-month rise in consumer prices, has fuelled expectations of a possible Federal Reserve rate hike in December. The prospect of tighter monetary policy has weighed on risk-sensitive assets, including cryptocurrencies.
Commenting on the market movement, Piyush Walke, Derivatives Research Analyst at Delta Exchange, said Bitcoin was consolidating near recent lows as stronger-than-expected US CPI data strengthened expectations of a possible interest rate hike in December.
He added that a stronger US dollar had put additional pressure on both gold and Bitcoin.
Walke also highlighted the $299.8 million in net outflows from US spot Bitcoin ETFs on Wednesday, which contributed to Bitcoin slipping below the $74,000 level. He further noted that Strategy, the world's largest corporate Bitcoin holder, was set to be removed from MSCI's global indexes, adding to the negative sentiment.
From a technical perspective, Walke said Bitcoin was showing signs of weakening buying momentum after falling below the $76,400-$77,000 range, which has now emerged as a key resistance zone. A sustained move above this range would be required to improve the cryptocurrency's near-term technical outlook, he said.
On the downside, $73,000 remains the immediate support level. A decisive break below this threshold could expose Bitcoin to further declines towards $70,000, followed by $66,300, Walke said.
Separately, a report by the Bitcoin Security Consortium flagged that around 7.1 million Bitcoin could be exposed to potential threats from quantum computing, with vulnerabilities primarily concentrated around ECDSA signatures. The report also highlighted a potential nine-minute attack window.
However, according to PANews, advances in quantum computing remain gradual, and no cryptographically relevant quantum computer currently exists.
Potential responses to the threat include migrating vulnerable addresses, adopting the post-quantum signature scheme SHRINCS and reaching consensus on P2PK tokens.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
The decline comes amid mounting institutional selling pressure and concerns over the Federal Reserve's interest rate outlook, with investors turning increasingly cautious towards risk-sensitive assets.
Bitcoin's market capitalisation stood at around $1.5 trillion while its 24-hour trading volume was recorded at $24.2 billion, according to data from Binance.
The cryptocurrency had a circulating supply of 20.1 million coins, accounting for 95.77% of its maximum supply of 21 million. Bitcoin's all-time high stands at $126,198.07, recorded on October 7, 2025. Meanwhile, the Binance Fear & Greed Index stood at 24, signalling extreme fear among market participants.
Institutional selling has emerged as another source of pressure on the cryptocurrency. US spot Bitcoin ETFs recorded five consecutive sessions of net outflows, taking cumulative withdrawals to around $1.5 billion. This included net outflows of $299.8 million on November 11, adding to the selling pressure in the market.
Macroeconomic developments have also contributed to the cautious sentiment. Stronger-than-expected US inflation data for October, which showed a 0.4% month-on-month rise in consumer prices, has fuelled expectations of a possible Federal Reserve rate hike in December. The prospect of tighter monetary policy has weighed on risk-sensitive assets, including cryptocurrencies.
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Commenting on the market movement, Piyush Walke, Derivatives Research Analyst at Delta Exchange, said Bitcoin was consolidating near recent lows as stronger-than-expected US CPI data strengthened expectations of a possible interest rate hike in December.
He added that a stronger US dollar had put additional pressure on both gold and Bitcoin.
Walke also highlighted the $299.8 million in net outflows from US spot Bitcoin ETFs on Wednesday, which contributed to Bitcoin slipping below the $74,000 level. He further noted that Strategy, the world's largest corporate Bitcoin holder, was set to be removed from MSCI's global indexes, adding to the negative sentiment.
From a technical perspective, Walke said Bitcoin was showing signs of weakening buying momentum after falling below the $76,400-$77,000 range, which has now emerged as a key resistance zone. A sustained move above this range would be required to improve the cryptocurrency's near-term technical outlook, he said.
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On the downside, $73,000 remains the immediate support level. A decisive break below this threshold could expose Bitcoin to further declines towards $70,000, followed by $66,300, Walke said.
Separately, a report by the Bitcoin Security Consortium flagged that around 7.1 million Bitcoin could be exposed to potential threats from quantum computing, with vulnerabilities primarily concentrated around ECDSA signatures. The report also highlighted a potential nine-minute attack window.
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However, according to PANews, advances in quantum computing remain gradual, and no cryptographically relevant quantum computer currently exists.
Potential responses to the threat include migrating vulnerable addresses, adopting the post-quantum signature scheme SHRINCS and reaching consensus on P2PK tokens.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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