Crypto Market Cap Falls Below $2.40 Trillion as Bitcoin Breaks $72,000
Key Facts
The cryptocurrency market capitalization fell below $2.40 trillion on November 12, dropping to its lowest level since mid-August and breaking below its 200-day moving average, according to a FxPro analysis cited by FXStreet. At 13:50 GMT, as U.S. trading began, Bitcoin fell below $72,000. The move came about five weeks after the cryptocurrency market began to decline, according to the analysis. The analyst said the moving average had not provided meaningful support for the market. The analyst identified Bitcoin’s next important support zone at $63,000 to $66,000.
The break below the average followed attempts by buyers to hold above it over the previous four days, but they did not halt the decline. The report quoted the analyst as describing them as "clear attempts by buyers to hold above this line over the past four days." The analyst added that the activation of stop-loss orders could make selling pressure self-reinforcing in the following hours. The analysis thus linked the break below the moving average to a greater likelihood of accelerating selling. The $63,000 to $66,000 zone remains the next technical level identified by the analyst.
Closing data showed Bitcoin falling to $71,460 on November 12, from $74,015.19 in the previous session. Ether closed at $2,019.74, compared with $2,056.36 on November 11. These closing prices are consistent with Bitcoin falling below $72,000 during the session, according to figures reported by EL7 data. When Bitcoin fell below that level, the Nasdaq-100 and S&P 500 indexes were rising, according to the FxPro analysis. This highlights the divergence between cryptocurrencies and the U.S. indexes at that moment, without by itself establishing the cause of the decline.
Against a backdrop of liquidity, the market capitalization of the USDT stablecoin fell by $6.6 billion over the 60 days ended November 7, according to CryptoQuant data cited by The Block. That is more than twice the $3.2 billion decline over a comparable period in December 2022, following the collapse of the FTX exchange. USDT accounted for about 62.8% of stablecoin supply when The Block published its report on November 11, compared with 25.1% for USDC. Glassnode said, according to The Block, that the contraction in supply means stablecoin holders are redeeming them for dollars and withdrawing cash from the market. It added that this reduces the liquidity available for a price recovery, placing the contraction in supply in the context of pressures facing the cryptoasset market.
Market pressure coincided with markets pricing in a possible U.S. rate hike of between 25 and 50 basis points in December, after October inflation data came in higher than expected, according to an Investing.com report citing the CME FedWatch tool. Bureau of Labor Statistics data showed the consumer price index rose 0.4% in October, after a 0.6% increase in September. The index excluding food and energy also rose 0.3% in October. Federal Reserve Governor Christopher Waller said he leaned toward supporting a 25-basis-point increase in December if events unfolded as he expected. But he said core inflation reaching about 0.3% or more would warrant considering a 50-basis-point increase, a conditional stance that does not represent an announced decision by the committee.
The U.S. Bureau of Labor Statistics was scheduled to release the October producer price index on November 13 at 08:30 a.m. Eastern time. The Federal Open Market Committee meeting is scheduled for December 8 and 9, 2026. The second day, December 9, includes a press conference, according to the Federal Reserve’s calendar. On subsequent moves, an Investing.com report on November 13 said Bitcoin had fallen 5.7% to $69,240.3 at 05:27 a.m. Eastern time, below $70,000 for the first time since mid-August. It was heading for a weekly loss of nearly 9%, its sixth consecutive week of declines, while Ether fell 4.6% to $1,950.56 and was down 13.2% for the week.