Bitcoin is facing a liquidity squeeze as the supply of dollar-linked stablecoins contracted by $14.2 billion over the past 30 days — its sharpest monthly decline since June 2022 — while demand for the cryptocurrency itself has fallen sharply, according to data from on-chain analytics firm Glassnode published on 11 November.
Market figures checked at 08:04 PKT on 12 November 2026 put Bitcoin trading near $74,013, up 0.28% on the day, with Ether around $2,056. The Fear and Greed Index stood at 28, in “fear” territory, after Bitcoin briefly dropped following hotter-than-expected US consumer inflation data before recovering above the $74,000 mark.
The stablecoin contraction is the clearest sign yet of capital leaving the crypto market. Stablecoins are the dollars of the crypto system: traders hold them to move in and out of positions quickly, so a shrinking supply means less money sitting ready to buy. Glassnode’s figures, corroborated by earlier research from CryptoQuant, show the aggregate supply of dollar-linked tokens falling by $14.2 billion in a single month.
The damage is not limited to stablecoins. CryptoQuant data shows that Bitcoin’s apparent demand — a measure of how much new buying is entering the market — fell by 284,000 tokens over the same 30-day period, turning deeply negative. At the same time, US spot Bitcoin exchange-traded funds recorded about $95 million in net outflows on 10 November, marking a fourth consecutive session of withdrawals and taking total outflows to $1.6 billion across 20 trading sessions.
The squeeze is also hitting recent buyers hardest. With Bitcoin down 15.65% so far in 2026 after a 6.34% decline in 2025, the cryptocurrency is now on track for its first back-to-back losing years since it began trading — and it would need a rally of roughly 17.6% from current levels simply to avoid that outcome.
Traders are watching two levels closely. Support sits at $72,700 to $73,000, the zone Bitcoin has defended in recent sessions; resistance is at $75,000 to $75,600, the area it must reclaim and hold to change the short-term picture. A break below support would open the way towards the $70,000 level, which analysts say is the next major test.
The wider market is sliding with it. Ether closed down 10% and XRP down 17% in the week ending 10 November, with year-to-date losses of roughly 31% and 43% respectively. Both remain far below the record highs they set in 2025, and the current slide has left Bitcoin about 16% lower on the year.
There are some counter-currents. Large Bitcoin wallets holding between 100 and 10,000 coins have resumed accumulating even as ETF investors withdraw, suggesting that some long-term holders see current prices as a buying opportunity. But with stablecoin liquidity draining at its fastest pace in more than four years, the market’s ability to absorb selling remains limited.
Macroeconomic pressure is adding to the strain. US consumer prices rose 0.4% in October after a 0.6% increase in September, and a Federal Reserve governor has raised the possibility of a half-point rate increase at the December meeting — a prospect that would make risk assets, including crypto, less attractive. The US October producer price index, due on 13 November, is the next major data point traders are watching.
For now, the market is range-bound and nervous: Bitcoin holding near $74,000, stablecoin supply shrinking, ETF money still walking out the door, and the next move likely to be decided by whether the $72,700 support level holds or gives way.
This post is market news information only, not financial advice.
