Crypto
US CPI Rises 0.4%, Above Expectations; Bitcoin Falls Below $73,000
Hotter US inflation rattles markets as Bitcoin loses key support, ETF withdrawals accelerate, and liquidation risks mount.
BLOCKINSIDERLoadingHotter US inflation rattles markets as Bitcoin loses key support, ETF withdrawals accelerate, and liquidation risks mount.
Tuesday's inflation data from Washington landed with a force few traders had priced in. Within hours, crypto screens turned red, and a closely watched Bitcoin floor gave way.
The shockwaves are still spreading. What follows has traders rethinking their next move.
The US Bureau of Labor Statistics reported consumer prices climbed 0.4% on a seasonally adjusted basis. Analysts had forecast only 0.3%, making the monthly overshoot a clear surprise.
It suggests price pressures remain stubborn, complicating the central bank's path toward easing.
The BLS also departed from its longstanding practice by not releasing the year-over-year change. The omission comes as a result of the 2025 government shutdown.
“BLS did not collect survey data for October 2025 because of a lapse in appropriations. For most CPI series, BLS could not publish October 2025 indexes. As a result, BLS cannot publish 12-month percent changes for October 2026 for indexes where October 2025 data are unavailable,” BLS stated.
Without that benchmark, traders leaned heavily on the monthly figure, which delivered an unwelcome surprise.
Markets responded quickly. The probability of no rate hike jumped to 87.5%, up from 76% just 72 hours earlier.
That shift reflects growing conviction that interest rates will remain unchanged.
The Federal Reserve now has little reason to cut borrowing costs soon. Higher prices keep policymakers cautious, and risk assets tend to struggle when easing hopes fade.
Bitcoin slid 3.4% over the day, trading near $72,793. The drop pushed the crypto king through both the $75,000 and $73,000 support levels. Losing those floors removes key cushions that had previously contained selling pressure.
The move came as leveraged traders had already placed large short contracts against BTC. Their bearish bets gained momentum once the inflation data reinforced the case for steady rates.
Shorts had piled in early, and the inflation data handed them a perfect trigger today.
Further pain may be waiting. Bitcoin could face another $264 million long liquidation event if price falls below $72,500. Such forced selling often accelerates declines, as liquidated positions add to downward momentum.
The US dollar is gaining strength, rising 0.7% over the day to reach 102.34. The greenback bounced back from support at 101.47, extending its recovery. A firmer dollar typically weighs on risk assets like Bitcoin, adding another headwind for crypto.
Bitcoin exchange-traded funds have not fared well either. They recorded outflows totaling $1.02 billion over the last three days.
Sustained withdrawals signal waning institutional appetite at a moment when buyers are needed most.
November 10 could add further to those outflows as Bitcoin's price takes a massive hit.
The three developments are closely linked. A hotter inflation print dampens hopes for easier policy, strengthens the dollar, and pressures crypto. Each factor reinforces the others, creating a difficult backdrop for digital assets in the short term.
The absence of the year-over-year figure adds uncertainty. Participants must rely on monthly readings to judge how persistent inflation really is.
Attention now turns to the $72,500 level for Bitcoin. A break below it could trigger the $264 million liquidation cascade. Bulls will need to reclaim the lost $73,000 support to stabilize sentiment.
For the dollar, the 101.47 support has held, and the rebound to 102.34 shows buyers remain active. Further dollar gains would likely keep pressure on Bitcoin and other risk assets.
Rate expectations remain the key variable. With the probability of no rate hike at 87.5%, markets see little room for policy surprises.
Until inflation cools or flows improve, Bitcoin looks vulnerable to further declines. Traders should expect continued volatility as November 10 trading unfolds.
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