Bitcoin Drops to Three-Month Low Below $73,000 as Hot CPI Revives Fed Rate Hike Fears

Bitcoin fell below $73,000 on Tuesday, November 10, touching its lowest level since late August, after October consumer price index data showed a hotter-than-expected 0.4% monthly rise and 0.3% core CPI gain. The print immediately raised the probability of a December Federal Reserve rate hike to 85% from 77%, and options markets began pricing in the possibility of a 50 basis point move. Dallas Fed President Lorie Logan reinforced the hawkish turn in prepared remarks, saying the Fed clearly needs at least two more quarter-point increases and that it may be possible to move more rapidly this winter than the FOMC had through the fall. Fed Governor Waller separately said he supports a December hike, while Deutsche Bank shifted its forecast to a single 25 basis point hike in January 2027.

The inflation shock triggered a broad crypto liquidation wave. Total liquidations across the market reached $705 million over 24 hours, with long positions accounting for 82.4% of that total. In one 15-minute window alone, $200 million in crypto longs were wiped out, and $600 million in leveraged positions were liquidated within the first four hours of the selloff. Bitcoin touched $72,787 on some exchanges, undercutting Sunday's trough by nearly 1%, while Ether fell roughly 2.8% in a single hour to around $2,018. XRP dropped to $1.04, putting the $1.00 support level within 4% reach, while Solana fell to a four-week low below $82. Zcash was among the hardest-hit assets, losing more than 10% on the day and briefly touching $1,003, a level not seen since September.

The selloff compounded existing pressure from crypto-specific headwinds. Bitcoin spot ETFs had already seen $1.48 billion in outflows, and stablecoin supply was falling, leaving few active buyers to absorb supply. Material Indicators co-founder Keith Alan flagged Bitcoin's 200-week simple moving average near $67,755 as a possible downside test. Hilbert Group CIO Russell Thompson set a risk level at $65,000 should Bitcoin break below $71,900 support, tying that scenario to potential margin calls at smaller AI and chip companies. A whale carrying a $49.1 million BTC long at 12x leverage was reportedly within $850 of liquidation during the session.

Mining company MARA added to market uncertainty by disclosing it had sold 13,597 BTC, roughly 40% of its treasury, over six weeks to fully repay a $750 million loan and fund a pivot into AI power infrastructure. Bitcoin critic Peter Schiff used the decline to note that Bitcoin is on track for its first back-to-back annual loss in its 18-year history, having fallen 6.34% in 2025 and sitting down 16.5% so far in 2026. Schiff warned that a third consecutive annual decline in 2027 is now a live possibility. The broader stock market also fell on the inflation data, with Coinbase dropping 4% and Robinhood sliding 3%, while semiconductor stocks had already lost 12% on November 5 in an AI-led selloff that pulled Bitcoin down just over 5% that day.