Dollar-linked token supply has contracted by $14.2 billion over 30 days, and Bitcoin's apparent demand has fallen sharply. Losses among recent buyers leave the price vulnerable to a decline toward $70,000.
Bitcoin is facing a fresh liquidity squeeze as shrinking stablecoin supply and mounting losses among recent buyers threaten its recovery. According to Glassnode's Nov. 11 report, the aggregate supply of dollar-linked tokens declined by $14.2 billion over 30 days, the fastest contraction since the 2022 market crisis.
Apparent demand drops to its weakest since March 2025
CryptoQuant's apparent demand indicator fell to negative 284,000 BTC over 30 days, its weakest reading since March 28, 2025. Comparable readings of negative 309,000 BTC in March 2025 and negative 273,000 BTC in June 2026 occurred during earlier market downturns followed by recoveries.
However, the current downturn has unfolded alongside persistent institutional selling. CryptoQuant found that the Coinbase Premium Index remained negative for 30 consecutive days, averaging approximately minus 0.14%. US spot Bitcoin exchange-traded funds have also recorded $1.6 billion in net outflows across 20 trading sessions.
Recent buyers sit on losses
The liquidity contraction is occurring as investors who entered during the August and September rally increasingly hold Bitcoin at a loss. CryptoQuant data shows the unrealized profit margin of coins held for one to three months collapsed from 33% on Sept. 22 to negative 6%. These holders bought at an average price near $79,500, against a market price of approximately $74,600 when the research was compiled.
Previous corrections in the current cycle have frequently pushed this margin toward negative 12% before stabilizing. At the $79,500 acquisition price, a negative 12% margin would put Bitcoin near $70,000.
Short-term holders hold a cost basis near $75,600
Glassnode's data shows that only 35% of Bitcoin held by investors who acquired coins within the past 155 days remains profitable. Their aggregate cost basis stands near $75,600. A recovery toward those acquisition levels could encourage investors to exit at breakeven, adding to selling pressure in a market already struggling to attract fresh capital.
Source: CryptoSlate
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