As anticipated yesterday, Bitcoin fell below $73,000 and touched a nearly 3-month low after the October U.S. CPI report came in hotter than forecast. Headline CPI rose 0.4% month over month against a 0.3% expectation, while core CPI rose 0.3% against a 0.2% expectation. Bitcoin was down 1.89% to $73,601.89 over 24h in the available data, and the broader crypto market fell 2.14% over the same period. The decline looked largely market-linked rather than tied to a Bitcoin-specific announcement, and the inflation surprise gave sellers a clear macro reason to act.
The Federal Reserve effect did most of the initial damage. A hotter inflation reading revived bets that the Fed will raise rates or keep them high at its December meeting. Higher rates lift yields on cash and government bonds, and that raises the opportunity cost of holding an asset that produces no cash flow. Bitcoin sits at the speculative end of the risk curve, so it absorbs that shift quickly. The CPI report changed rate expectations, and rate expectations changed the relative appeal of Bitcoin against safer yield-bearing assets. I see this as the primary trigger because it was measurable, immediate, and broad enough to hit crypto alongside other rate-sensitive assets.
Leverage turned the macro shock into a violent flush. Over $1 billion in leveraged crypto positions disappeared within 24h, and roughly 88% of those liquidations hit long positions. A long liquidation closes a bet on higher prices and sells the underlying asset to cover the loss. That selling pushes the price lower, which triggers more liquidations, which produces more selling. The available data also shows about $178 million in crypto long positions closed within 1 hour after the CPI release, while BTC liquidations totaled $204.41 million over 24h. The inflation report did not create that fragility. It exposed it.
Institutional demand had already lost some of its cushion. U.S. spot Bitcoin ETFs recorded record net outflows of $1.28 billion in a single week, led largely by BlackRock’s IBIT fund. The available data also shows $201 million in net outflows on November 9. Those withdrawals matter because ETFs had provided a visible source of steady buying support. Public companies added to the supply side by unloading roughly $869 million worth of Bitcoin. That corporate selling reinforced the impression that large holders were trimming exposure into weakness rather than adding.
The broader risk backdrop made the crypto move worse. A chip-led selloff sent the Nasdaq 100 tumbling 6.4%, and Bitcoin moved with tech-correlated assets. Headlines about stalled U.S.-Iran negotiations and a high-profile independent board investigation into Nvidia’s CEO further dampened global risk appetite. The correlation data supports that read. Crypto showed an 83% correlation with the S&P 500 and a 95% correlation with gold, consistent with broad cross-asset repricing. The Fear and Greed Index sat at 26, which reflects defensive sentiment rather than causal panic. I would treat the correlations as evidence of shared pressure.
My own view is that the CPI report deserves its place as the primary reason, but the severity of the drop came from the interaction between that report and the market’s internal weaknesses. Leverage was elevated, ETF flows had turned negative, and corporate treasuries were reducing exposure. The tech selloff and geopolitical headlines then turned a macro repricing into a fuller risk-off cascade. In that sense, the CPI was the spark, and the dry kindling was already stacked.
The near-term outlook remains cautious. Bitcoin is near its 200-day simple moving average at $73,136, with a recent swing low around $72,689. A hold above $73,136 and a reclaim of $74,000 to $75,000 could support a rebound. A break below $72,689 risks further weakness. The total crypto market cap sits at $2.45T as the current pivot, and a move back toward $2.52T would suggest the selloff is easing. The next spot ETF flow reports offer a measurable demand check. I see the bias as bearish while price stays below $74,000 to $75,000.
The key question is whether Bitcoin can hold near $73,000 and whether ETF flows show buyers returning.
https://e27.co/cpi-at-0-4-broke-bitcoins-us73000-floor-what-happens-if-the-fed-goes-bigger-20261111/
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.