US Inflation Data Shakes Crypto Market as Bitcoin Breaks Below $73K Support

The decline intensified selling pressure across the cryptocurrency market, with Ethereum, XRP, and Solana also posting substantial losses as Bitcoin extended its slide.

The October Consumer Price Index (CPI) increased 0.4% month over month, exceeding the 0.3% forecast, while core inflation rose 0.3% against expectations of 0.2%. The latest figures reinforced concerns about persistent inflation and reduced expectations of monetary easing.

October US CPI Exceeds Market Expectations

The US Bureau of Labor Statistics (BLS) reported that headline CPI increased 0.4% in October, following a 0.6% advance in September. Although the monthly increase slowed, it remained above economists’ expectations, indicating that inflationary pressures had not eased as quickly as markets anticipated.

Headline inflation rose 0.4% MoM and core CPI 0.3%, both exceeding forecasts and signaling persistent price pressures following September’s 0.6% increase. Source: Crypto Rover via X

Core CPI, which excludes food and energy prices, also exceeded forecasts. The index increased 0.3% during the month, compared with the expected 0.2%. Notably, core inflation maintained the same monthly growth rate for a third consecutive month, following similar increases in August and September.

Several spending categories contributed to the latest increase. Shelter costs advanced 0.3% in October, accounting for more than 30% of the monthly rise in overall consumer prices. Food prices increased 0.5%, while energy costs climbed 0.7% following a much sharper 5.2% increase in September.

The October report also came with an important data limitation. The BLS did not publish year-over-year inflation figures because the 2025 government shutdown prevented the collection of October 2025 price data, leaving no comparable base for calculating the annual change.

Consequently, investors had to assess the latest inflation trend primarily through monthly figures. The absence of an annual reading added another layer of uncertainty to an already sensitive economic outlook.

Bitcoin Price Breaks Below $73K Support After CPI Release

Bitcoin faced renewed selling pressure shortly after the inflation figures became public. The cryptocurrency was trading near $74,264 before the November 10 CPI announcement but quickly declined to approximately $73,494 within five minutes of the release.

Bitcoin (BTC) price chart. Source: Brave New Coin

Selling continued during the session, eventually pushing BTC below the closely watched $73,000 support level. Investing.com market data showed Bitcoin reaching an intraday low of approximately $72,836 before recovering to around $73,294 in its later market snapshot at 11:01 a.m. ET.

The latest move marks a further deterioration in Bitcoin’s short-term price structure. Although BTC recovered above $73,000 after briefly breaking below it, the level remains an important area for traders monitoring whether buyers can regain control.

The decline also extended an existing period of weakness rather than marking an entirely new downturn. Bitcoin had already struggled to regain $75,000 as investors monitored tightening monetary policy expectations and withdrawals from US spot Bitcoin ETFs.

Those investment products recorded approximately $201 million in net outflows on November 9, marking their third consecutive session of withdrawals. BlackRock’s iShares Bitcoin Trust accounted for $213.2 million in redemptions, although inflows into other Bitcoin funds partially offset the withdrawals. Total net outflows across the Bitcoin ETF category remained near $201 million.

The combination of weaker institutional flows and uncertainty surrounding Federal Reserve policy added to the pressure on Bitcoin. The latest CPI reading introduced another obstacle for buyers attempting to stabilize the market above recent support levels.

Federal Reserve Rate Hike Expectations Put Pressure on Crypto

The inflation report strengthened expectations that the Federal Reserve could continue tightening monetary policy at its December 8–9 meeting. Higher interest rates generally create less favorable conditions for speculative investments, including cryptocurrencies, as investors reassess the relative appeal of cash and fixed-income assets.

The latest reading also aligned with concerns raised by Federal Reserve Governor Christopher Waller before the CPI announcement. Waller indicated that he would support a 25-basis-point rate increase in December even if inflation showed signs of cooling.

However, he also warned that a stronger policy response could become necessary if underlying price pressures remained elevated.

“If core consumer prices rise 0.3% or more from September, ‘a stronger policy move may be needed,'” Waller said, adding that a 50-basis-point increase should be considered.

October’s core CPI subsequently reached that 0.3% threshold, reinforcing the discussion around a potentially larger increase. Reuters reported that market expectations for a 50-basis-point increase climbed to nearly 15% by midmorning, while a quarter-point hike was already considered almost certain.

The combination of stronger employment and persistent inflation presents a difficult policy environment. The Federal Reserve must balance its inflation target against the risk of weakening economic activity through additional rate increases.

For cryptocurrency investors, the possibility of higher borrowing costs for longer could limit expectations of near-term monetary easing. A stronger dollar and rising Treasury yields also tend to reduce demand for risk-sensitive assets.

Crypto Liquidations Exceed $170M After Inflation Report

The sharp Bitcoin decline triggered another wave of forced closures across leveraged cryptocurrency positions. Within an hour of the October CPI announcement, approximately $178 million in crypto long positions were liquidated, according to liquidation data reported by TokenPost.

More than $170 million in long positions were liquidated within minutes as Bitcoin fell below $74,000 and Ethereum dropped under $2,050, hitting 11-week lows amid heavy leverage. Source: @BullTheoryio via X

Long positions represent leveraged bets that an asset’s price will increase. When prices move against traders, exchanges can automatically close positions after their collateral falls below required maintenance levels. These forced closures can accelerate selling during periods of heightened volatility.

The latest liquidation activity followed an already significant wave of leveraged position closures. CoinDesk reported that cryptocurrency futures liquidations had reached approximately $1.1 billion during the preceding 24-hour period on November 9, with long positions accounting for most of the total.

That earlier figure reflected the broader market decline before the November 10 CPI announcement and should not be attributed entirely to the inflation release. Nevertheless, it showed that leveraged traders were already facing substantial losses as Bitcoin traded around the $72,800–$75,000 range.

The additional liquidations following the CPI publication demonstrated how quickly unexpected economic data can affect leveraged cryptocurrency markets. With traders positioned for a recovery, the sudden decline forced further exits and added to downward price pressure.

Ethereum and XRP Extend Crypto Market Losses

The selling pressure also extended to other digital assets. Ethereum traded near $2,027 after falling below the $2,100 level and touching an intraday low of approximately $2,006. The asset was down around 4.54% over 24 hours in the latest Investing.com market snapshot.

Ethereum (ETH) price chart. Source: Brave New Coin

XRP also extended its decline, trading near $1.05 after reaching approximately $1.0336. Its 24-hour loss stood near 3.69%, placing the token under additional pressure after several consecutive sessions of weakness.

Solana recorded a similar downturn, trading around $82.49 after touching an intraday low of approximately $81.59. The token declined roughly 5.2% over the preceding 24 hours.

The simultaneous declines across Bitcoin, Ethereum, XRP, and Solana reflected broader weakness in cryptocurrency markets rather than an isolated move in BTC.

XRP price chart. Source: Brave New Coin

Ethereum and XRP also entered the session following several days of negative price action. Their latest losses highlighted the sensitivity of digital assets to changing expectations around US monetary policy and broader financial market conditions.

Bitcoin’s break below $73,000 has brought the next support areas into focus. BRN analysts previously identified $73,000 as an important level, warning that a daily close below it could expose BTC to a decline toward $70,000. Bitget Wallet analysts also highlighted the $73,000–$74,000 region as an important support zone, with a deeper breakdown potentially exposing $68,000.

For now, Bitcoin’s ability to reclaim and maintain the $73,000 level remains important for assessing short-term market direction. The December Federal Reserve meeting, upcoming inflation readings, and changes in institutional investment flows are likely to remain key factors influencing cryptocurrency prices.