Bitcoin price has fallen nearly 2% to $73,700 over the past 24 hours after hotter-than-expected US inflation data added pressure to an already struggling cryptocurrency market, triggering hundreds of millions in leveraged liquidations.
Summary
- Bitcoin price dropped 2% to $73,700 as October US inflation exceeded economists’ expectations.
- US headline CPI rose 0.4%, while core inflation climbed 0.3%, renewing concerns over Federal Reserve rates.
- Crypto liquidations reached $723.37 million, with approximately $570 million coming from leveraged long positions.
- Analyst Ali Martinez reported that Bitcoin whales reduced their holdings by more than 34,000 BTC.
- Bitcoin price faces technical support near $72,700, while reclaiming $75,000 remains an important recovery level.
According to the Bureau of Labor Statistics, consumer prices rose 0.4% in October, exceeding economists’ expectations of 0.3%. Although the reading slowed from September’s 0.6% increase, it raised concerns that the Federal Reserve could maintain higher interest rates or raise them again in December.
Bitcoin briefly slipped below $73,000 following the report, while Ethereum, XRP and Solana recorded losses as selling spread across major cryptocurrencies.
Why is Bitcoin price down today?
The latest inflation figures have added uncertainty over the Federal Reserve’s next interest rate decision, with investors reassessing expectations for borrowing costs following Tuesday’s report.
Core CPI, which excludes food and energy, rose 0.3% in October, above forecasts of 0.2%. The figure matched September’s reading and marked the third consecutive month of 0.3% growth.
Shelter costs rose 0.3%, accounting for more than 30% of the monthly increase in consumer prices. Food prices climbed 0.5%, while energy costs rose 0.7%, following a 5.2% increase in September.
The government did not release the usual annual inflation comparisons because the 2025 federal shutdown prevented the collection of October data that year.
Following the inflation report, US stocks declined, with the S&P 500 falling 0.94% and the Nasdaq Composite losing 1.51%. The Dow Jones Industrial Average dropped 0.61%, while the 10-year Treasury yield moved above 5% during the reported market session.
Bitcoin price had already been struggling to recover above $75,000 before the inflation figures were released. As crypto.news previously reported, continued withdrawals from spot Bitcoin ETFs and weak buying demand had kept the cryptocurrency under pressure ahead of the CPI announcement.
Bitcoin liquidations reach $723 million as whales reduce holdings
The decline triggered another round of forced liquidations across cryptocurrency derivatives markets, where traders use borrowed funds to increase their positions.
According to CoinGlass data, nearly 115,600 traders were liquidated over the reported 24-hour period, with total liquidations reaching $723 million.
Long positions accounted for roughly $570 million, showing that traders betting on higher cryptocurrency prices suffered most of the losses.
Bitcoin alone recorded $203 million in liquidations, including $175 million from long positions and $28 million from shorts.
Meanwhile, cryptocurrency analyst Ali Martinez reported that large Bitcoin holders had reduced their balances by more than 34,000 BTC over the preceding week, worth almost $2.6 billion.
The selling coincided with Bitcoin’s decline from around $79,000 to below $73,000. Martinez identified a similar pattern among Ethereum whales, which reportedly reduced their holdings by approximately 17,800 ETH.
His figures describe changes in large-holder balances and do not establish how much Bitcoin was sold directly on exchanges.
Bitcoin ETF outflows add pressure as institutional demand weakens
Selling pressure has continued across US spot Bitcoin ETFs, with institutional investment products recording withdrawals throughout early November.
Farside Investors recorded $201 million in net outflows on November 9, including $213.2 million withdrawn from BlackRock’s iShares Bitcoin Trust.
Morgan Stanley’s MSBT received $22.1 million that session, partially offsetting losses elsewhere.
During November’s first trading week, Bitcoin ETFs recorded approximately $1.28 billion in net withdrawals, with BlackRock’s fund accounting for about $1.21 billion.
The withdrawals followed heavy ETF selling during the previous week, when Bitcoin had already fallen below $75,000.
Market analysts have identified renewed spot buying and sustained ETF inflows as conditions for a more durable recovery.
Bitcoin price prediction as BTC approaches $72,700 support
Technical indicators continued to show weak momentum, with Bitcoin price trading below $75,000 after several weeks of lower highs and lower lows.
The Relative Strength Index stood at 33.95, below its moving average of 37.47 and approaching the oversold threshold of 30.
Meanwhile, the MACD remained negative at -1,892.55, below its signal line of -1,511.88, while the histogram registered -380.67.
Immediate technical support sits around $73,200, with a recent hourly swing low at $72,689. A sustained break below those levels could put $72,000 and the psychological $70,000 level back in focus.
For a recovery, Bitcoin would need to move above 74,005–74,316 before attempting to reclaim $75,000. The next technical reference lies near $78,000.
Crypto analyst Colin Talks Crypto described Bitcoin as forming the right shoulder of an inverse head-and-shoulders pattern, a formation commonly monitored for potential trend reversals.
“Long term is bullish, once we get the final flush,” the analyst wrote, although the proposed pattern remains an interpretation of the chart, not a confirmed reversal.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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