Bitcoin fell to $73,770 on November 11, with several warning signals emerging across financial markets as pressure on the cryptocurrency mounted.
The world’s largest cryptocurrency dropped 1.6% over the past 24 hours. BTC briefly fell to $72,740 on November 10 before recovering some ground.
Meanwhile, the broader crypto market is showing signs of growing anxiety. The Crypto Fear & Greed Index has fallen to 35, placing sentiment firmly in the Fear zone. This marks a further deterioration from last week’s and last month’s reading of 46, which indicated Neutral sentiment.
So, what is driving Bitcoin lower? Four developments are putting pressure on the cryptocurrency, with unexpectedly high US inflation emerging as the biggest concern.
Higher US Inflation Raises Fed Rate Hike Fears
The biggest pressure on Bitcoin price comes from the latest US inflation figures.
October’s Consumer Price Index (CPI) increased 0.4%, exceeding economists’ expectations of 0.3%, according to the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, also came in hotter than expected, rising 0.3% against forecasts of 0.2%.
The figures have raised concerns that the Federal Reserve could increase interest rates in December rather than ease monetary policy.
According to CME Group’s FedWatch tool, interest rate futures now imply an 88.5% probability of a 25-basis-point rate hike next month.
That shift matters for Bitcoin because higher interest rates generally make riskier assets less attractive. When borrowing costs rise and safer investments offer better returns, investors may reduce exposure to speculative assets such as cryptocurrencies.
Bitcoin ETF Outflows Add Selling Pressure
Another source of weakness is the persistent withdrawal of money from US spot Bitcoin exchange-traded funds (ETFs).
These funds have recorded approximately $2.15 billion in net outflows since October 30, according to SoSoValue data.
The situation became particularly concerning last Friday, when US spot Bitcoin ETFs recorded approximately $696 million in single-day outflows, their largest daily withdrawal since January, according to Glassnode.
“Only two days in the past year saw larger outflows, and both came before price fell further,” Glassnode noted in a post on X.
The analytics firm added that a return to consistent inflows would help ease the selling pressure.
$742 Million in Liquidations Deepen the Decline
The sell-off has also been amplified by forced liquidations in the crypto derivatives market.
More than $742 million worth of crypto positions were liquidated over 24 hours, according to CoinGlass data. Around $583 million came from long positions, meaning traders who had bet on rising prices.
Stronger Dollar and Rising Bond Yields Add to Pressure
Broader financial markets are also becoming less supportive of Bitcoin.
The US Dollar Index, which tracks the dollar against six major currencies, rose 0.1% to 102.30, nearing its highest level since October 29. Meanwhile, the yield on the US 10-year Treasury note moved closer to 5%.
Experts agree that both trends can weigh on Bitcoin. A stronger dollar and higher bond yields make traditional investments more attractive, giving investors less reason to take risks on assets like cryptocurrencies.
What Should Bitcoin Traders Watch Next?
Derivatives analytics platform CoinGlass recently flagged $74,400 as a key level for BTC, warning that a sustained breakdown beneath it would confirm a bearish bias.
Additionally, Bitcoin recently closed its fifth consecutive red weekly candle while slipping below its 50-week moving average at the similar levels.
Analysts warned that failing to quickly reclaim this key moving average makes a drop toward $70,000 highly probable for Bitcoin.
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