Bitcoin Slips Near $73,500 as Hot October CPI Revives Fed Hike Bets
Bitcoin traded near $73,500 Tuesday after October CPI rose 0.4%, above the 0.3% forecast, pushing traders toward a larger Federal Reserve rate hike in December. The move added to pressure from spot ETF outflows and triggered $723 million in derivatives liquidations, according to CoinGlass.
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The Inflation Print and Bitcoin's Move
Bitcoin fell to roughly $73,500 on Tuesday morning, down about 1% over the prior day according to Bitcoin Magazine Pro data, while Crypto.news put the 24-hour decline closer to 2%, at $73,700. The discrepancy likely reflects different measurement windows; both outlets agree the price briefly dipped below $73,000 after the release and then steadied in the high-$73,000s.
The trigger was October consumer prices, which rose 0.4% month over month against a 0.3% forecast, according to the Bureau of Labor Statistics as cited by both outlets. Core CPI, which excludes food and energy, rose 0.3% against expectations of 0.2%. The headline reading slowed from September's 0.6% gain.
Rate Expectations and Crypto's Sensitivity
The report revived bets on a larger Federal Reserve move. Bitcoin Magazine reported that two- to five-year Treasury yields rose at least 10 basis points after the print and that traders increased odds of a half-point hike at the December 9 meeting. Fed Governor Christopher Waller had said earlier in the day he was "leaning toward" a December increase and that a 50 basis point hike "should be considered" if inflation ran hot.
Higher policy rates raise the opportunity cost of holding an asset that pays no yield, which is why bitcoin has struggled since Friday's jobs report. U.S. equities also declined after the release, with the S&P 500 down 0.94% and the Nasdaq Composite off 1.51%, per Crypto.news.
The two outlets differ on the annual inflation picture. Bitcoin Magazine notes the government published no year-over-year comparison because of the 2025 shutdown, citing a Bank of America estimate of roughly 3.8% headline and 2.7% core. Crypto.news repeats the missing annual figures but does not cite a separate estimate.
Flows and Leverage
Spot ETF demand did not offset the decline. Farside Investors data reported $201 million in net outflows from U.S. spot bitcoin ETFs on Monday, including $213.2 million from BlackRock's iShares Bitcoin Trust, its seventh straight session of redemptions. Crypto.news puts first-week November ETF outflows at about $1.28 billion, with roughly $1.21 billion from BlackRock's fund. Bitcoin Magazine notes BlackRock says in-kind swap demand into IBIT is at a record, a figure that sits uneasily with the redemption streak and suggests the outflows reflect a change in holder composition rather than a simple loss of interest.
Leveraged positions were hit harder. CoinGlass data cited by Crypto.news shows about 115,600 traders liquidated over 24 hours totaling $723 million, of which roughly $570 million were long positions. Bitcoin accounted for $203 million of that figure.
On-chain commentary from analyst Ali Martinez, cited by Crypto.news, says large bitcoin holders reduced balances by more than 34,000 BTC, about $2.6 billion, over the prior week. Martinez's figures describe changes in large-holder balances and do not establish how much was sold on exchanges.
Levels and Calendar
Analysts flagged $73,000 as the level to watch, per Bitcoin Magazine. A daily close below it could open a path toward $70,000, while reclaiming $80,000 would point to stronger demand. Ether fell about 1.4% to near $2,100 overnight, and U.S. spot ether ETFs shed $184.6 million Monday.
Next catalysts are producer price data on Friday and minutes from the Fed's October meeting on November 18, both of which will inform whether traders keep or pare December hike bets.
Why It Matters
For Traders
The $73,000 level and Friday's producer price data are the near-term markers, with December hike odds likely to keep swinging crypto and ETF flows.
For Investors
Bitcoin's sensitivity to Fed tightening and sustained spot ETF redemptions suggest macro policy remains a dominant driver of price over the coming months.
For Builders
Heavy liquidation volume in leveraged derivatives underscores the importance of margin and liquidation design for protocols operating during volatile macro-driven sell-offs.
This article is for information only and is not financial advice. Read the full disclaimer.
