Coinbase Institutional Ties Bitcoin’s Drop to Fed Bets, Not Binance Hack

Coinbase Institutional’s weekly analysis attributed Bitcoin (BTC)’s decline mainly to Federal Reserve rate expectations rather than the Binance hack, adding a new explanation for its break below $73,000 amid renewed Fed rate fears.

October nonfarm payrolls and the consumer price index (CPI) both exceeded expectations. Separately, markets had fully priced in a 25-basis-point rate increase in December, while expectations for rate increases over the next 12 months reached 64 basis points.

The analysis identified $73,000 as key support. U.S. spot Bitcoin exchange-traded funds recorded $1.44 billion in outflows over the five trading sessions before Nov. 11.

The analysis also cited an $11.5 billion decline in stablecoin supply over 30 days, the largest on record, and put Bitcoin holders’ unrealized losses at about $12.7 billion.