Today, Bitcoin’s price has fallen below $67,000 after losing the $75,500 level and hitting a low of $66,456. It is now down nearly 12% this week. The drop has triggered $663.83 million in liquidations, with $533.56 million coming from long traders.
However, Coinbase Institutional has revealed the true reason behind the continuous Bitcoin price fall.
Here’s what it says.
Fed Rate Hike Fear, Putting Bitcoin Under Pressure
In its weekly report, Coinbase Institutional said Bitcoin’s recent drop had more to do with changing Fed rate expectations than the Binance hack. And the bigger problem for Bitcoin is coming from the macroeconomic side.
October CPI rose 0.4% month-over-month, while core CPI increased 0.3%. Both figures were 0.1 percentage point above expectations, leading traders to expect a 25-basis-point Fed rate hike in December.
Coinpedia news reported that Fed Governor Christopher Waller also said he would support a 25-basis-point hike, taking interest rates to 4%–4.25%. He warned that if core inflation rose above 0.3%, the Fed could consider a larger 50-basis-point hike.
As a result, markets are now pricing in around 64 basis points of Fed rate hikes over the next 12 months, up from 37 basis points earlier in November.
For Bitcoin, higher rates make a non-yielding asset less attractive while a stronger dollar adds another pressure. The dollar index has climbed to 103.4, its highest level since April 2025.
Bitcoin Faces More Selling Pressure Ahead
The pressure is not limited to interest rates. Stablecoin supply has dropped by $11.5 billion over the past 30 days, marking the largest decline recorded by Coinbase Institutional.
Bitcoin spot ETFs have also seen heavy withdrawals. Since October 30, outflows have reached a record $3 billion, with November 4 being the only day to record an inflow of $74.6 million during this period.
Adding to the pressure, MSCI confirmed that Strategy will be removed from its global indexes after November 30. This could force funds that track these indexes to sell around $2.8 billion worth of Strategy shares.
Bitcoin Crash Warning: $16K in Sight?
With Bitcoin now trading below $67,000, Coinbase Institutional sees $62,000 as the next major level if the $66,000–$68,000 range fails to hold. On the upside, a move above $73,000 could improve the chances of Bitcoin returning to $80,000.
Bitcoin critic Peter Schiff also warned that the decline could get worse. He said selling may pick up if Bitcoin falls below $50,000, potentially sending it toward its 2022 low of under $16,500.
He added that, ”I wouldn’t be surprised to see a retest of that level before year-end.”
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