Bitcoin Price Could Crash to $62,000 as Fed Rate Hike Fears Trigger $1.6B Liquidations

What to Know

• Bitget Wallet analyst Lacie Zhang warns Bitcoin could fall toward $62,000 as Federal Reserve rate hike expectations reach 85%.
• Cryptocurrency liquidations reached $1.6 billion, while Bitcoin ETFs recorded substantial withdrawals, adding pressure to an already weakened digital asset market.
• Bitcoin faces critical support between $65,000 and $66,000, while upcoming inflation data could influence Federal Reserve policy and investor sentiment.

Bitcoin faces growing downside risks as rising expectations of a Federal Reserve interest rate hike threaten further cryptocurrency market losses. Bitget Wallet research lead Lacie Zhang has identified $62,000 as a potential downside target if critical support levels fail.

According to Zhang’s latest market assessment, weakening institutional demand and leveraged trading losses have increased pressure on Bitcoin. The warning follows Bitcoin’s decline to $67,568, its lowest level since late August.

Bitcoin Faces $62,000 Risk as Federal Reserve Rate Hike Odds Reach 85%

Zhang identified rising Treasury yields, a stronger US dollar, and persistent selling pressure as major threats to Bitcoin’s recovery. October’s consumer price index increased 0.4% monthly, exceeding economists’ expectations and raising concerns about persistent inflation.

The analyst estimated that December Federal Reserve rate hike expectations had climbed to approximately 85%. Higher borrowing costs could discourage investment in cryptocurrencies as investors favor assets offering more predictable returns.

Meanwhile, Bitcoin’s breakdown below $72,000 and $73,000 triggered additional selling across leveraged trading positions. Zhang identified $68,000 as immediate support, followed by a stronger demand zone between $65,000 and $66,000.

A decisive breakdown below those levels could expose Bitcoin to further losses toward $62,000 and $63,000. Conversely, buyers must reclaim the $72,000 to $74,000 resistance zone to improve the cryptocurrency’s technical outlook.

Bitcoin Liquidations Reach $1.6 Billion as ETF Withdrawals Intensify

The cryptocurrency market recorded approximately $1.6 billion in liquidations within 24 hours, affecting 185,172 traders, according to CoinGlass. Long positions accounted for approximately $1.5 billion, representing 89.5% of total liquidations. Short liquidations reached $170 million, while Binance represented more than 35% of the market’s total liquidated positions.

Source: Coinglass

Selling pressure also affected major altcoins, pushing Ethereum below $2,000 and reducing total cryptocurrency market capitalization toward $2.4 trillion. Institutional activity added another concern as US spot Bitcoin ETFs approached their sixth consecutive trading session of net withdrawals.

According to Farside Investors, investors withdrew approximately $1.4 billion between November 5 and November 11. BlackRock’s IBIT accounted for more than $1 billion of those withdrawals.

Preliminary Thursday figures indicated another $48 million in net outflows, excluding pending data from BlackRock and Fidelity. Additionally, potential equity index removals could create further pressure on companies holding significant cryptocurrency exposure. MSCI plans to remove Strategy, Metaplanet, and Yellow Cake from its global equity benchmarks effective November 30. Estimates suggest the changes could trigger up to $8.8 billion in passive fund outflows.

US Inflation Data Could Determine Bitcoin’s Next Price Direction

Investors are also monitoring October’s US Producer Price Index for additional evidence about inflation and future monetary policy decisions. A stronger inflation reading could reinforce expectations of higher interest rates, increasing pressure on Bitcoin and other speculative assets.

Zhang also identified the anticipated Anthropic IPO as another potential test of investor risk appetite. Weak demand or disappointing market performance could encourage further selling across technology stocks and cryptocurrencies.

Bitcoin’s ability to defend the $65,000 to $66,000 support range remains central to Zhang’s bearish scenario. A sustained recovery above $74,000 could ease immediate selling pressure, while a breakdown could expose the $62,000 target.