The Bitcoin CPI price drop pushed the cryptocurrency below 74,000 dollars on November 10, extending a difficult month for digital assets after US inflation came in hotter than expected. Crypto.news reported that Bitcoin traded around 73,784 dollars, down approximately 1 percent over the previous 24 hours after reaching an intraday high near 75,500 dollars. The move left the coin down around 4.5 percent over the past week.
Bitcoin CPI price drop: Hot inflation revives rate hike fears
The US Bureau of Labor Statistics reported that headline inflation rose 0.4 percent in October, exceeding the 0.3 percent increase economists had expected. Core CPI climbed 0.3 percent for the third consecutive month, compared with a 0.2 percent forecast. Bitcoin Magazine said both readings increased pressure for a larger Federal Reserve rate increase in December.
Headline inflation slowed from September’s 0.6 percent reading, but the underlying detail did little to ease concerns about monetary policy. Shelter costs rose 0.3 percent and accounted for more than 30 percent of the monthly increase in consumer prices. Food prices climbed 0.5 percent, while energy costs rose 0.7 percent. The Labor Department did not publish annual inflation figures for October because the previous year’s government shutdown prevented officials from collecting the data needed for a year-over-year comparison.
Bitcoin traded near 73,500 dollars on Tuesday morning, according to Bitcoin Magazine. The coin had been near 74,300 dollars shortly before the inflation release and dropped to about 73,400 dollars immediately afterward. It briefly undercut the prior overnight low of 73,477 dollars before stabilizing in the high-73,000-dollar area. Crypto.news said approximately 200 million dollars in leveraged cryptocurrency positions were liquidated within five minutes of the release.
December rate hike expectations rise
Financial markets had already fully priced in a 25 basis point increase at the Federal Reserve’s December 9 meeting. That move would lift the federal funds target range from 3.75 to 4.00 percent to 4.00 to 4.25 percent. Bitcoin Magazine reported that bond traders responded to the inflation data by pushing two- to five-year Treasury yields higher by at least 10 basis points and increasing bets on a half-point increase.
Federal Reserve Governor Christopher Waller said policymakers should consider a larger 50 basis point increase if inflation remained stubbornly high. His comments followed stronger employment figures showing that the US economy added 165,000 jobs in October. Higher rates make interest-bearing assets more attractive while increasing the opportunity cost of holding Bitcoin, which pays no yield. For traders, that shift can reduce demand for riskier assets and turn inflation data into a direct pressure point for cryptocurrency prices.
Investors will next receive the October Producer Price Index on November 13. The Federal Reserve’s October meeting minutes follow on November 18. Bitcoin Magazine said those releases could determine whether traders retain their bets on a half-point hike or reduce them. Until then, the rate outlook remains a central risk for Bitcoin because a faster tightening path would reinforce the pressure created by hotter consumer inflation.
ETF outflows weaken the institutional cushion
Fund demand did not cushion the decline. US spot Bitcoin ETFs recorded approximately 1.28 billion dollars in net withdrawals between November 2 and November 6, with BlackRock’s iShares Bitcoin Trust accounting for roughly 1.21 billion dollars of those outflows. Fidelity’s FBTC attracted 93.1 million dollars during the same period. Another 201 million dollars left US spot Bitcoin funds on November 9, including 213.2 million dollars from BlackRock’s IBIT.
The IBIT outflow was its seventh consecutive session of redemptions, Bitcoin Magazine reported. BlackRock said demand to swap coins into IBIT in kind was at a record, but the withdrawal streak showed that the vehicle’s redemption pressure remained pronounced. Crypto.news also said Bitcoin’s earlier recovery towards 80,000 dollars had been supported largely by leveraged futures positions, while direct spot buying remained relatively weak. That distinction matters because futures-driven gains can reverse quickly when leverage is reduced.
The selling also extended beyond Bitcoin. Ether fell about 1.4 percent to near 2,100 dollars overnight as US spot ether ETFs lost 184.6 million dollars on Monday. Bitcoin itself has lost more than 11 percent over the last 30 days, following a peak above 87,000 dollars in early October. Decrypt said the asset had returned to price levels last seen in early August, when the cryptocurrency mounted an impressive 25 percent gain in a single month.
Technical levels frame the next move
BRN analysts identified 73,000 dollars as a critical level, warning that a daily close below it could trigger further selling towards 70,000 dollars. Bitget Wallet analysts viewed the 73,000 to 74,000 dollar region as immediate support, with a decisive breakdown potentially exposing Bitcoin to a decline towards 68,000 dollars. Russell Thompson, chief investment officer at Hilbert Group, said a loss of the 71,900-dollar trend line could eventually expose Bitcoin to 65,000 dollars.
Thompson’s warning was tied to the possibility that weakness in AI and semiconductor stocks could produce margin calls and force leveraged investors to sell assets outside their core portfolios. He expected some capital to return to digital assets after the deleveraging period passes, but his immediate assessment remained bearish. Hilbert’s five-factor global liquidity model fell to 2.61, while its six-factor model stood at 3.02, down from 3.23 and 3.27 on November 2.
Options pricing also showed stronger demand for protection against downside moves. Thompson put five-delta put implied volatility at 51, compared with 38 for at-the-money options, creating a 13-point premium. Comparable calls carried only a one-point premium. Decrypt said Bitcoin’s Relative Strength Index was 47.8, close to the midpoint and slightly tilted toward sellers, but still well above the 30 level traders call oversold. Its Average Directional Index reading of 21.9 was below the commonly used 25 threshold for a strong trend.
A broader test of market structure
Some market measures offered a limited counterpoint. Decrypt reported that Bitcoin was up 0.7 percent at 74,559 dollars after touching its lowest level in more than two months. A CoinGlass snapshot showed 1.2 billion dollars in liquidations over 24 hours, including about 1.04 billion dollars from longs. Bitcoin positions accounted for 324 million dollars, nearly 87 percent of it in longs. That rebound did not change the immediate message from the inflation report, which was that hotter data can quickly trigger leveraged liquidations.
The 50-week exponential moving average sat near 78,250 dollars, above the 200-week exponential moving average at about 69,790 dollars. Decrypt said their order still favored the longer-term uptrend, although Bitcoin was below the faster average and the gap had narrowed. On the way down, 74,400 dollars was identified as the first area where buyers could step in, followed by 72,550 dollars and the 69,000-dollar area around the 200-week average. A rebound would face sellers near 76,040 dollars and the 50-week average around 78,250 dollars.
For traders, the Bitcoin CPI price drop has shifted attention from whether inflation was improving to whether the Federal Reserve may need to act more forcefully. The immediate test sits around 73,000 dollars, where BRN and Bitget Wallet have identified support. A decisive break could extend the decline towards 68,000 dollars, with Thompson’s 65,000-dollar scenario becoming more relevant if broader technology markets also weaken. Sustained ETF inflows, stronger direct spot demand and a reclaim of 80,000 dollars would be required for a more convincing recovery.
Until then, the Bitcoin CPI price drop leaves the market balancing three forces: pressure from a possible 50 basis point rate increase, heavy ETF redemptions and a market already marked by forced deleveraging. The next Producer Price Index and Federal Reserve minutes will test whether traders see persistent inflation or a temporary overshoot. The focus keyword for this market update is Bitcoin CPI price drop.